South American nation aiming to ‘reduce external dependencies’
Brazil has begun a search for private partners as it pushes ahead with plans announced last year to expand uranium production and cash in on higher prices for the heavy metal, which is used for nuclear fuel.
The state-run development bank (BNDES) has launched a request for information procedure to identify consulting firms interested in taking part in structuring a project to expand uranium production at Indústrias Nucleares do Brasil (INB).
INB is the state company responsible for uranium prospecting, extraction and fuel production for Brazil's nuclear programme.
Reports said that increasing ore production will ensuring the supply of fuel for the Angra-1 and Angra-2 nuclear plants – the only two commercial units in the country – and create conditions to export the surplus.
The expansion will also make it possible to “reduce external dependencies” through partnerships in other strategic stages of the nuclear fuel cycle, INB said. Russia has been a long-standing partner, providing conversion and enrichment services for Brazilian uranium, with contracts for supplying enriched uranium for the Angra.
Brazil said last year that it would resume exploration for uranium in the country after a 40-year hiatus as it eyes “an avenue of opportunities” following increase in the uranium price in recent years.
INB sad it also needs to take into account an increase in demand that will come with the completion of Angra-3, construction of which began in 1984 but has seen a number of lengthy delays.
Uranium prices have seen significant volatility, but have trended upwards in recent years due to increased demand for nuclear power as a carbon-free energy source.
The spot price for uranium was $76.25/lb on 3 December, based on data from London-based Numerco. Canada-based uranium fuel provider Cameco put its latest spot price – for 30 November – at $75.8/lb with a long-term price of $86/lb, the highest this year.
The uranium market was boosted in late October by an $80bn (€69m) deal that the Trump administration signed with Westinghouse Electric for the construction of nuclear reactors.
This deal followed earlier actions by the US government to stimulate the nuclear sector, including plans to increase the nation’s uranium enrichment capacity and accelerate the pace of licensing for reactor construction.
