Uranium Corp, NPCIL to bid for assets abroad
KOLKATA: Public sector units Uranium Corporation of India Ltd (UCIL) and Nuclear Power Corp of India Ltd (NPCIL) will jointly bid for overseas uranium reserves, potentially boosting its financial firepower in any bid battle for gaining control of these assets.
The two companies are exploring initial bids for mines in Mongolia, Kazakhstan, Russia and South Africa. India, which needs more power to light homes and run factories, is focusing on cleaner sources of energy. Its nuclear plants produce about 3% of the total power generated in the country, which India aims to raise to 25% by 2050.
"UCIL and NPCIL will jointly bid for assets. We are keen on securing uranium assets abroad, even as we develop new mines within the country," UCIL managing director Diwakar Acharya said, adding, "We would like to bring back the ore to the country," referring to assets in those countries.
While NPCIL will be the majority partner in any such project, UCIL is likely to pick up strategic stake of about 26%.
UCIL has expertise is hardrock mining while NPCIL operates atomic power stations. The two companies joining hands will enhance the financial muscle of any bid.
The Department of Atomic Energy, the administrative agency for both companies is framing a policy to facilitate the venture. In the past, policy issues and slow decision-making have stymied efforts by some PSUs to acquire assets abroad.
"As a mining company, we can contribute our expertise in hard-rock mining. We have some of the best mining experts and technologists working for us," Acharya said.
Acharya said factors such as mineable reserves, logistics and the regulatory framework of the host country would also influence choice.
"Globally, uranium prices crashed after the accident at the Fukushima reactor in Japan. A good reserve could be valued anywhere between $300 million and $500 million," an analyst said.
The two companies are exploring initial bids for mines in Mongolia, Kazakhstan, Russia and South Africa. India, which needs more power to light homes and run factories, is focusing on cleaner sources of energy. Its nuclear plants produce about 3% of the total power generated in the country, which India aims to raise to 25% by 2050.
"UCIL and NPCIL will jointly bid for assets. We are keen on securing uranium assets abroad, even as we develop new mines within the country," UCIL managing director Diwakar Acharya said, adding, "We would like to bring back the ore to the country," referring to assets in those countries.
While NPCIL will be the majority partner in any such project, UCIL is likely to pick up strategic stake of about 26%.
UCIL has expertise is hardrock mining while NPCIL operates atomic power stations. The two companies joining hands will enhance the financial muscle of any bid.
The Department of Atomic Energy, the administrative agency for both companies is framing a policy to facilitate the venture. In the past, policy issues and slow decision-making have stymied efforts by some PSUs to acquire assets abroad.
"As a mining company, we can contribute our expertise in hard-rock mining. We have some of the best mining experts and technologists working for us," Acharya said.
Acharya said factors such as mineable reserves, logistics and the regulatory framework of the host country would also influence choice.
"Globally, uranium prices crashed after the accident at the Fukushima reactor in Japan. A good reserve could be valued anywhere between $300 million and $500 million," an analyst said.
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