Dar Told to Mine Uranium for Energy Needs

Dar Told to Mine Uranium for Energy Needs

Wednesday, August 9th 2006

Tanzanian politicians are pushing for the exploration of alternative sources of energy, including exploiting the country’s uranium reserves for electricity generation.

Uranium, one of the world’s most expensive minerals, is known to exist in Tanzania but has not been exploited despite the enactment of an Atomic Energy legislation in 2003.

Uranium has not been included in the mining sector’s plan of action because it falls under the Science and Technology Ministry, rather than the Energy and Minerals docket, say experts.

Mohamed Habib Mnyaa, an opposition legislator, asked parliament recently to amend the Atomic Energy Act No. 7 of 2003 to place uranium exploration under the Ministry of Energy and Minerals.

“In order to bring about economic development, the time has come for a feasibility study to be undertaken on uranium, given its economic importance worldwide,” he said.

The Mkuju River basin in southern Tanzania boasts 2,000 square kilometres of uranium rich land. An estimated one third of the continent’s uranium deposits are located in the region.

Between 1978 and 1982, a German exploration company Uranerzbergbau Gmbh, reported huge deposits of the mineral in the basin, and in Makutupora, Dodoma.

It also found that Tanzania had among the lowest costs of uranium exploration in the world.

At the time, exploration costs were estimated at $4 per square kilometre, compared with $16 in West Africa and $244 in the United States.

The Deputy Minister for Energy and Minerals, Lawrence Masha, said the use of nuclear technology in Tanzania was limited by low electricity demand. A single nuclear plant, for instance, generates at least 500 Megawatts. Tanzania’s peak demand is about 400 Megawatts.

Critics, however, see political rather than commercial considerations behind reluctance to exploit the mineral. They say it could save the country from persistent power shortages by reducing reliance on hydropower sources.

Currently, Uganda, South Africa and Malawi are the only African countries known to have engaged in uranium exploration for of uranium for energy purposes.

The trade in raw uranium and uranium refinement is dominated by Canada, Niger, Namibia, South Africa, and Australia.

Recently, China agreed to provide Australia with uranium for power generation.

The uranium market, like all commodity markets, is volatile and is subject to the forces of supply and demand, but the whims of geopolitics.

The only significant commercial use for uranium is to fuel nuclear reactors for the generation of electricity. This was recently the subject of intense debate in Britain.

There are 440 reactors operating worldwide, and a total of 69 new reactors are under construction or planned for completion within the next 10 years.

According to experts, before uranium is ready for use as nuclear fuel in reactors, it must undergo a number of intermediary processing steps. These include mining, milling into yellowcake, enriching and finally fuel fabrication to produce fuel assemblies or bundles.

Uranium is not traded on any organised commodity exchange such as the London Metal Exchange. In most cases, it is traded through contracts negotiated directly between the buyer and the seller.
Copyright © 2006 The East African. All rights reserved.

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