China's Nuclear Fuel Cycle - 2020

Uranium (Nuclear Minerals) / Nuclear Power - Economics, Design, & Industry

WNA reported in August, 2020 that China has become self-sufficient in most aspects of the fuel cycle. China aims to produce one-third of its uranium domestically, obtain one-third through foreign equity in mines and joint ventures overseas, and to purchase one-third on the open market. China's two major enrichment plants were built under agreements with Russia but much current capacity is indigenous.

China’s R&D investment in nuclear technologies is very significant, particularly in high-temperature gas-cooled and molten salt-cooled reactors. China has stated it intends to become self-sufficient not just in nuclear power plant capacity, but also in the production of fuel for those plants. However, the country still relies to some extent on foreign suppliers for all stages of the fuel cycle, from uranium mining through fabrication and reprocessing, but mostly for uranium supply. As China rapidly increases the number of new reactors, it has also initiated a number of domestic projects, often in cooperation with foreign suppliers, to meet its nuclear fuel needs.

The national policy is to obtain about one-third of uranium supply domestically, one-third from Chinese equity in foreign mines, and one-third on the open market. Increasingly, other stages of the fuel cycle will be indigenous. Uranium demand in 2020 is expected to be over 11,000 tU (with 58 reactors operating), in 2025 about 18,500 tU (for 100 reactors) and in 2030 about 24,000 tU (for 130 reactors). UxC reports that China imported over 115,000 tU over 2009-14, notably 25,000 tU in 2014 and 10,400 tU to July in 2015. With annual consumption currently about 9000 tU, much of this will be stockpiled.

China National Nuclear Corporation (CNNC) maintains a strong monopoly on the nuclear fuel cycle in China, notably the front end, forcing China General Nuclear Power (CGN) to work around this, principally with international ventures, some involving large capital outlays. With the merger of SNPTC and CPI to form SPI in 2015, so that SNPTC took over all the nuclear-related business of CPI to function as an active subsidiary of SPI, SNPTC said it intended to get into both uranium mining and fuel fabrication.

CNNC is also the main operator in the fuel cycle back end, evidenced by a series of agreements with Areva for a reprocessing plant. That in November 2015 was part of a wider agreement in relation to all aspects of the fuel cycle, and foreshadowing an intention to take equity in Areva NC (now Orano), in connection with evolving agreements to build a reprocessing plant based on Areva technology.

Following Areva’s restructuring, a new framework agreement between what is now Orano and CNNC was signed in February 2017, covering “the whole industrial chain of the nuclear fuel cycle.” In particular it supports plans for construction of a reprocessing plant in China. The commitment was reaffirmed in January 2018 through the signing of an MoU.

As well as a long-standing close relationship with France, China has a bilateral nuclear cooperation agreement (‘123 agreement’) with the USA from 1985 which was renewed in 2015. This is a prerequisite for nuclear trade in plant and materials that involves the USA.