China gets first toehold in Canadian uranium

Chinese steelmaker Sinosteel Corp has signed a memorandum of understanding with small Canadian explorer Ditem Explorations that could lead to it taking an equity stake in the firm.

Ditem said it had signed the deal with Sinosteel last month, providing the groundwork for exploration of its uranium properties and new properties in the Athabasca basin.
China’s appetite for energy and metals has driven an acquisition drive abroad by its domestic firms, while its economic growth has supercharged commodities prices over the past few years.

Uranium acquistions are high on China’s wishlist, and prices UX-U308-SPT have also gained from global demand, mine disruptions and falling inventories. The price hit a record high of $136 per pound last year and has since fallen back to $90, still more than 12 times its price of around $7 in 2000.

Reuters