TORONTO (miningweekly.com) – Analysts said on Wednesday there was no “breakthrough” in China’s uranium reprocessing capabilities, and there would be no impact on the market for the fuel.
“The bottom line is there was no breakthrough, there will be zero impact on Chinese demand for uranium,” UxC senior vice president Mike Smith stated in an interview.
This came after China Central Television reported on Tuesday that technology developed by China National Nuclear Corp could extend the country’s uranium resources to last 3 000 years.
China Daily – the State-owned paper targeted at Westerners – said the following day in a front page headline that the move would solve the country’s uranium shortage.
Dundee Securities analyst David Talbot was equally sceptical.
“We don’t put a lot of credence into this spin about a Chinese breakthrough,” he said in a January 5 note titled “China’s uranium reprocessing hype”.
Talbot pointed out that the uranium spot price actually rose after the announcement suggesting that “recent uranium buyers don’t believe the Chinese reprocessing hype either”. http://www.miningweekly.com/article/analysts-say-chinese-uranium-announcment-is-overblown-2011-01-05