Niger+Strategic+Minerals

=CNNC Likely to be a Competitive Investor in Niger Uranium Mining=

Executive Summary:
China National Nuclear Corporation (CNNC) through its subsidiary China International Uranium Corporation (SinoU) and its joint venture of SOMINA is highly likely to remain a leading investor in Niger's Uranium mining sector. Niger makes up 7.5 percent of the world's uranium mining output, and there is strong government support for expansion. CNNC currently has operation in the Abokorum mine in the Agadez region, and SOMINA operates the Azelik mine. These mines are hoping to produce 700 tons per year. A smaller Chinese company Trendfield Holdings Ltd, based in Hong Kong, also has a joint venture to develop the uranium deposits in Madaouela mine.

Discussion:
According to the World Nuclear Association, Niger is the world's fourth-ranking producer of uranium. Areva is currently developing the Imouraren uranium mining project that will begin production in 2013 or 2014. The expectation is for this project to boost Niger's uranium output by 5,000 tons per year, making Niger the second largest exporter of nuclear fuel. The government of Niger is strongly supportive of expanding its uranium mining sector. The State Department has reported that for 2008, China invested USD 334.7 million in Niger's uranium.

In 2006, CNNC though its subsidiary SinoU agreed to develop the 12,790 tons Abokorum uranium deposit in the Agdez region of Niger. Also, SinoU and China's ZTE Energy Corp. have established a joint venture for uranium exploration near the Azelik mine. In 2007, the joint venture of SOMINA was established with equity of 37.2 percent to SinoU, 33 percent to the Niger government, 24.8 percent to a Chinese investment company ZXJOY, and 5 percent Trendfield Holdings Ltd., which parent company is the China based private international mining and consulting firm of Trendfield Energy and Resources. However, in 2009 Trenfield sold its share to Korea Resources Corp. Trendfield formed the UREX joint venture with Australia's Artemis Resources to explore the Tagaza deposits. In 2010, SinoU started exploitation of the Abokorum and Azelik mines with the hope of producing 700 tons per year.



** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone, and did not use structured analytic methods. The subject is moderately complex and the deadline was moderately difficult to meet.
 * Analyst:** RoseAnna Wright