In my role as corporate development director for Cameco, I spent most of the last ten years travelling the world evaluating uranium projects. It was this experience that led Azincourt’s Board of Directors to offer me the role of CEO. Put simply, they saw a depressed uranium market as the perfect opportunity to acquire top notch projects at low cost and wanted the right CEO to follow through.
Last Friday (November 21) we announced our first such acquisition (you can find the press release here). We have entered into definitive share purchase agreements with Cameco and Vena Resources for the acquisition of 100% of the issued shares of Minergia – a private Peruvian company. Minergia owns 100% of the rights and interests in the advanced stage Macusani and early stage Muñani uranium exploration projects in the Puno department of south-eastern Peru covering a combined area of 14,700 hectares.
China displaced Germany as the world’s top exporter in 2009, exporting almost $1 trillion in goods in that year. However, the country’s need for energy to fuel its export economy has resulted in heavy dependency on fossil fuels, particularly oil. To tackle the increasing requirement for clean energy and to reduce reliance on energy supplies that are vulnerable to disruption, China has embarked on a massive nuclear energy program .Securing enough uranium to feed these plants has become a top concern for Chinese planners.
Nuclear power accounts for 19% of US electricity consumption. But did you know that 10% of all electricity generated in the US comes from a Russian source?
Thanks to the Megatons to Megawatts program, decommissioned Russian nuclear warheads have been providing uranium since 1995 to American nuclear plants as fuel. Now, 20 years later 475.2 metric tons of highly enriched uranium has been converted to 13,723 metric tons of low-enriched uranium. That’s about 20,000 bombs recycled into clean energy.
While Russia is around $13 billion richer, the US has a problem on its hands. With the Megatons to Megawatts program coming to an end in 2013, where does it get its supply of uranium for its 104 nuclear reactors in the future?