Central Asia’s Other Strategic Richness: Uranium
The world press has been writing about a new Renaissance in global terms for some time. Turkey does not seem even remotely interested or aware of this Renaissance: The Nuclear Renaissance. The reason for this being that Turkey, the world's 16th industrial state, is not included in the group of 32 states which have nuclear technology and nuclear power plants. It is clearly apparent that Turkey will not be joining this group for at least another 8-10 years. This is despite the fact that Turkey needs to utilise all types of new and renewable sources required to produce electricity to meet the urgent necessity for the production of high capacity and rapidly increasing electricity needs, where nuclear power seems to be the only viable option. Renewable resources such as wind, solar and geothermal energy sources are only marginal solutions for ever increasing energy needs. In addition to this, the world's climate is rapidly changing from the effects of greenhouse gases prompting the famous physicist Stephen Hawking, once anti-nuclear, to assert that nuclear power, even though it will not stop this change, can at least slow it down . Furthermore, the rapid depletion of fossil fuels is forcing developed and fast developing industrial states to look again toward nuclear power. Some obvious critics of nuclear power in Turkey assert that "nuclear power plants are no longer being built in the world" and wish to condemn Turkey to live forever in the darkness of the Middle Ages, but more significantly perhaps, at the mercy of foreign oil and natural gas corporations. Contrary to their claims, there are currently 250 new nuclear power plants being built around the world in addition to the 440 already in existence.
Nuclear Power Plants and Fuel Procurement
China, the world's fastest developing state, is in increasing need of electricity to support its substantial industrial development. Currently, new coal power stations are being put into operation nearly every week further adding to the considerable pollution of the world's atmosphere. As a result, significant amounts of sulphur dioxide, carbon emissions and radiation are being released into the atmosphere, because coal also emits radiation. Despite this careless and cavalier behaviour, China still has an energy gap and in order to meet its energy needs it has embarked on a bold new nuclear power project. In accordance with this project, China will put two new nuclear power plants into operation every year until the year 2020. As a result, China's short-term dependence on outside energy resources and the possible risks associated with it will be minimised and at the same time, to some extent, relieve itself from accusations of polluting the environment with poisonous gases. To this end, China has signed agreements with Australia, who is the biggest uranium producer after Canada, but has the largest uranium reserves in the world. China with its huge and increasing production potential is in need of not just uranium but every type of resource including iron, tin, zinc and copper from all around the world. Consequently, China is competing with Western states and India in Africa, which is also an important source for raw materials. However, uranium in particular has become a special priority as a strategic resource for Beijing. This is because uranium as an energy resource can be stored and the procurement of uranium does not carry any short-term risks. Moreover, the low price of uranium as compared to other energy sources is important for China, which will have to give more importance to future global competition. China, which plans to increase electricity production up to 40 gigawatts over the next 15 years, seems to have shifted its concentration onto nuclear power for the future with uranium that provides continuity, rather than to oil supplies from the crisis regions of the Middle East and Africa, yet this still leaves China dependent on others for this resource, of which it does not have significant enough amounts itself. Australia, which has 40% of the world's uranium reserves, is a special place for China, along with Canada, who has a reserve of 1,143,000 tonnes and is the biggest uranium producing state with 11,600 tonnes per year.
A couple of months ago, former Russian President Vladimir Putin stated that "We will sell our oil and gas but while doing so, we will acquire our electricity from nuclear power plants. In accordance with this, we will build 26 new nuclear power plants in the next 10 years". The "we" in Putin's statement means the Russian Federation, which is traditionally a serious uranium consumer. This is because existing operational nuclear power plants are in need of uranium. Up until recently, Russia was one of the two biggest nuclear powers whereby large amounts of uranium were consumed for the production of arms. The Russian Federation, which halted nuclear weapon production, has even shifted enriched uranium from decommissioned nuclear weapons, converting it into low grade uranium for use in nuclear power plants. Russia has 870,000 tonnes (including low grade) of known natural uranium reserves. Furthermore, Russia has an additional 130,000 tonnes reserve potential through its companies and partnerships in former Soviet Republics. Russia has enough reserves for 60 years in accordance with its current use and its prospective nuclear power plants. 60 years is not a long period of time for any state that plans for the future. In other words, even with its current levels of stock and low grade reserves in Yakutia; this potential global superpower will experience the need for uranium in the future. Consequently, while domestic production can meet 3.5 thousand tonnes of annual consumption out of 17-18 thousand tonnes, Russia is barely coping with its old stocks and resources gathered from decommissioned weapons. This resource deficit is a very definite problem for Russia. Two radical options can be presented for meeting their needs; (1) in addition to the currently used 0.2-0.3% uranium ore, a shift to a lower-grade (0.15% or even 0.05%) uranium ore can be made or (2) establishing even closer ties with the uranium reserve rich and promising Central Asian Turkic Republics. Actually, the Russian Federation is already pursuing intensified relations with these states which were once attached to Russia. The Russian Federation, which has secured recent economic supremacy through oil and natural gas policies via the Shanghai Cooperation Organisation, is attempting to push out of play the US, Turkey and Iran who are vying for positions as important actors in Central Asia, especially the Turkic regions, and are quite obviously calculating the future acquisition of uranium ore, which will gain value and see an increase in demand.
As mentioned above, uranium ore, which will become an increasingly significant strategic commodity for Russia, China and all developed countries, can be found in Canada and Australia in large quantities. However, Central Asia's two largest states Kazakhstan and Uzbekistan are also significant states with their known reserves. Even today, Kazakhstan with 860,000 tonnes and Uzbekistan with 150,000 tonnes of known reserves are predicted to gain strategic significance especially with the possibility of finding new fields and low-grade uranium becoming a commercially viable commodity.
Kazakhstan and Uranium Production
In 2010, Kazakhstan, which has approximately 18% of the worlds known reserves, is expected to quadruple its current production rate of 4,300 tonnes per year and become the world's leading producer by surpassing Canada and Australia. Kazakhstan having strategically important uranium reserves in addition to energy sources like oil and natural gas appears to be lucky but at the same time attracts global attention.
The Russian Federation, which wants to control the transportation of Kazakhstan's fossil fuels to open seas, has also signalled its desire to have its share of the Central Asian Turkic Republics' nuclear trade. The agreement between Putin and Nazarbayev in 2005 on the use of nuclear technology for peaceful purposes will help Russia to reach the above aim. Although having significant uranium reserves itself, Russia it seems, just like the United States' strategy of preserving and not using its oil reserves for prospective future shortages, is planning to make use of the Central Asian state's uranium via the atom/nuclear monopoly Rosatom to meet its current needs. To put this in context, recently the Kazak state corporation Kazatomprom and Rosatom established a joint company for the management of two important uranium mines in South Zarechnoye and Budyonnovsk. Furthermore, another company that is founded in Astana is aiming to construct small and medium scale nuclear power plants and in cooperation with a similar third company, the enrichment of uranium in Angarsk, Siberia. However, Kazakhstan, besides its good relations with Russia in this field, also has negotiations with Japan, Canada and France. The Japanese firm Ituchu has a ten year agreement for the supply of uranium imports from Kazakhstan.
Uranium Sources of Uzbekistan
The activities of foreign corporations are increasingly intensifying in Uzbekistan, which has gained importance due to its known uranium reserves and the possibility of as yet undiscovered new reserves as well as the increasing value of currently commercially cheap reserves. The Koreans have already signed a pre-contract to establish a uranium mine in the Kizil-Kum desert, where the majority of Uzbekistan's uranium reserves are located. In 2010 annual uranium production is expected to rise from the current 2,300 tonnes to 3,000 tonnes. In a relatively short period of time Uzbekistan's known reserves, approximately 150,000 tonnes, will surpass Russia's reserves, thus when you take into consideration the 40 new nuclear power plants that have been ordered by Putin, uranium clearly becomes increasingly important. Whichever way we look at it, for the reasons mentioned above, Russia has no option but to acquire more uranium sources whatever the cost. During this period of Russia's high demand for uranium, Russian mining king Vladimir Potanin's company Interros is known to have embarked upon an intensive pursuit for uranium mining rights in Uzbekistan. Although, Uzbekistan's gold mines have great significance, uranium's future potential to exceed gold in value has given rise to the intensification of Russian efforts in Uzbekistan in this area. Because of traditional Russo-Uzbek relations, and Uzbekistan's closer cooperation with Russia in the mining field, Moscow is considered to have a greater chance in getting uranium and gold mining rights in Uzbekistan as opposed to the West. As a result of Putin's successful Central Asian politics and his invitation to the Uzbekistan President Islam Kerimov to join the Commonwealth of Independent State's nuclear alliance shows us Uzbekistan's huge potential in this area and also gives an insight into the Russian Federation's long-term plans.
Conclusion
The world has entered the era of a Nuclear Renaissance and those states that are prepared for the future and think broadly, as in other fields, have entered into a stage of competition for the nuclear power resource of uranium just as they did for oil. Today's known reserves of uranium are sufficient for meeting world energy demand for 100 years, by putting in to circulation low-quality uranium (1.000 ppm U, particle per million), in place of today's high-quality uranium (20.000 ppm U) this 100 year period can be extended a bit longer. The realisation of the commercial use of thorium, which is found in large amounts in Turkey, in nuclear plants, could also increase this period.
Apart from Central Asia's geopolitical significance, the abundant existence of increasingly significant strategic resources like uranium, in addition to fossil fuels, is something that Turkey should seriously think about. Because, eventually Turkey, in accordance with the reality of the world, will have no choice but to choose nuclear power and energy in order to free itself from the energy risks hovering above its head like the sword of Damocles. Turkey should therefore develop its economic and political relations, especially in the mining sectors, on a state and corporate level with the ethnically related Turkic Republics of Kazakhstan and Uzbekistan and even with Kyrgyzstan, who cannot fully utilise its uranium reserves because of current prices, but has a potential to step into the world market as demand rises.
Endnotes
1Kulebi, Ali (2007) Türkiye'nin Enerji Sorunları ve Nükleer Gereklilik, Istanbul: Bilgi Yayınevi
*TUSAM - National Security Strategies Research Centre Vice Chairman
