The China National Uranium Co., Ltd., a core enterprise for natural uranium within the country's nuclear fuel supply chain, was listed on the main board of the Shenzhen Stock Exchange on Wednesday, becoming the first natural uranium stock on the bourse, and marking a step forward in the guarantee capability of uranium resources in China.
The stock opened at 62 yuan (about 8.78 U.S. dollars) per share, giving the company an initial market capitalization of more than 124 billion yuan (about 17.55 billion U.S. dollars). By the closing of the morning session, the stock had risen 281.50 percent from its issue price of 17.89 yuan (2.53 U.S. dollars) per share to 68.25 yuan (about 9.66 U.S. dollars) per share, lifting its market value above 140 billion yuan (about 19.82 billion U.S. dollars). In the mid-session, the stock price once climbed to as high as 80 yuan (about 11.33 U.S. dollars) per share.
The China National Uranium Co., Ltd., also a subsidiary of China National Nuclear Corporation, is primarily engaged in the mining, smelting, sales and trading of natural uranium, as well as the comprehensive utilization of radioactive associated minerals.
Funds raised from the initial public offering (IPO) this time will be utilized in two main areas which are the expansion of domestic natural uranium operations and projects related to the integrated use of radioactive associated mineral resources.
"Natural uranium is a key strategic resource and energy mineral for the country. A safe and stable supply of natural uranium is a foundation for rapid development of nuclear energy. As the national team and main force in safeguarding our country's natural uranium supply, China National Uranium is a cornerstone and 'granary' supporting development of the nuclear energy industry of China," said Yuan Xu, chairman of the China National Uranium Co., Ltd.
The company holds 19 mining licenses and six exploration licenses, and has built domestic production plants in uranium-rich regions, including Xinjiang, Inner Mongolia, Guangdong and Hunan. Its capacity layout is centered on sandstone-type uranium deposits, supplemented by hard-rock uranium, while recovering natural uranium through the comprehensive utilization of radioactive substance associated mineral resources.
"Through the IPO, we will further increase investment in the domestic natural uranium industry, to realize rapid expansion of its production capacity and economic scale, and to strengthen our capability of uranium resources supply and guarantee in China. We will promote construction of production capacity projects in such regions as Xinjiang, Inner Mongolia and Hunan," Yuan said.
China National Uranium listed on Shenzhen Stock Exchange
