First it’s Canadian Oil. Now it’s Canadian Uranium.
As we’ve said before, China is becoming a major competitor in the continuing struggle for energy and resources.
With their GDP growing at an unstoppable rate of 8-10% a year, China’s need for energy is projected to increase by 150 percent by 2020.
The country is franticly looking for resources; scouring the globe and gobbling up everything in their path.
They have already made deals with several countries around the world. China went to Cuba for nickel, Chile for copper, and even made a controversial bid to buy Unocal, America’s ninth leading oil producer.
Currently Canada exports about half of its oil resources to the US. But very recently China and Canada have inked several deals for Canadian oil exports. China needs the Canadian oil to continue the boom for its economy.
But China is giving Canada the eye once again. Not for oil anymore. Now they want the country’s uranium.
China must feed its insatiable appetite for energy. To do so China plans to build as many as 30 new nuclear reactors to fuel its flourishing economy at a price tag close to $40 billion.
To power the nuclear reactors they’ll need uranium…lots of it…and the best place to look would obviously be the world’s largest uranium producer. And that’s Canada. The country exports an amazing 12,000 tons of U3O8 a year.
During the past several months Chinese investors have made numerous visits with Canadian mining companies to observe business and discuss the two countries future relations.
According to a report put out last month the Asia Pacific Foundation of Canada predicts that a global uranium shortage of 45,000 tons is coming over the next decade and the Chinese economy boom is the key reason
Currently the United States is Canada’s biggest customer of uranium purchasing no less than half of the country’s total exports. But you have to wonder; will we be outbid by the Chinese?
A Canadian Foreign Affairs spokesman said "Given that the Chinese are looking to increase dramatically the number of nuclear stations, it would logically follow that they would be looking to Canada to increase their imports of uranium. Canada would definitely like to supply the reactors and the uranium."
China will continue to comb the earth for energy resources to meet its future energy needs.
Round and round they go. Where they’ll stop, nobody knows.
– Luke Burgess