moroccan uranium phosphates

MOROCCAN URANIUM PHOSPHATES

Tajeddine BENNANI KARIM Office National de L’Electricité

Casablanca - Morocco

Morocco locationMorocco locationUranium resourcesUranium resourcesImbalance between supply and demandImbalance between supply and demandUranium demand forecastUranium demand forecastUranium market analysisUranium market analysisMoroccan uranium phosphatesMoroccan uranium phosphatesConclusionsConclusions

PLANPLAN

ALGERIA

SPAIN

MOROCCO

MAURITANIA

Morocco locationUranium resourcesImbalance between supply and demandUranium demand forecastUranium market analysisMoroccan uranium phosphatesConclusions

5.5 million tons of conventional uranium resources at a cost less than 130 US$/kg10.5 million tons of undiscovered resourcesThe question is : Will the identified and undiscovered resourcessatisfy the demand ?

URANIUM RESOURCESURANIUM RESOURCES

� More we advance in time, more uranium becomes expensive.

� The capacity and number of mines decrease over the time.

URANIUM RESOURCESURANIUM RESOURCES

Primary uranium resources in the world

URANIUM RESOURCESURANIUM RESOURCES

� Uranium World production 42 000 tons/year� Uranium World consumption 67 000 tons/year� The cause of this difference are the secondary resources� The main secondary resources are :- Uranium Commercial stock reserves - Uranium coming from the reduction of USA and Russianuclear arsenal - Uranium from recycling through the spent fuel reprocessing cycle

URANIUM RESOURCESURANIUM RESOURCES

URANIUM RESOURCESURANIUM RESOURCES

Uranium World production & consumption

Morocco locationMorocco locationUranium resourcesUranium resourcesImbalance between supply and demandImbalance between supply and demandUranium demand forecastUranium demand forecastUranium market analysisUranium market analysisMoroccan uranium phosphatesMoroccan uranium phosphatesConclusionsConclusions

� Conventional resources Production (42000 tons) will not increase to reach the global needs (67000 tons).

� The uranium commercial stock reserves are approaching zero. � The Megaton to Megawatt program (USA/RUSSIA) will terminate in 2013.

IMBALANCE : SUPPLY AND DEMANDIMBALANCE : SUPPLY AND DEMAND

The imbalance between supply and demand has caused U3O8 price increase :22 (jan. 03) to 249 US$ (Apr. 07)

IMBALANCE : SUPPLY AND DEMANDIMBALANCE : SUPPLY AND DEMAND

Morocco locationMorocco locationUranium resourcesUranium resourcesImbalance between supply and demandImbalance between supply and demandUranium demand forecastUranium demand forecastUranium market analysisUranium market analysisMoroccan uranium phosphatesMoroccan uranium phosphatesConclusionsConclusions

URANIUM DEMAND FORECASTURANIUM DEMAND FORECAST

� Uranium global demand could double by 2030 and reach about 150 000 tons/year.

� Nuclear generating capacity in 2030 730 GW (2006 : 368 GW)� Uranium requirements in 2030 149000 t (2006 : 64200 t)

Source : World Nuclear Association (WNA) - September 2007

Morocco locationMorocco locationUranium resourcesUranium resourcesImbalance between supply and demandImbalance between supply and demandUranium demand forecastUranium demand forecastUranium market analysisUranium market analysisMoroccan uranium phosphatesMoroccan uranium phosphatesConclusionsConclusions

URANIUM MARKET ANALYSISURANIUM MARKET ANALYSIS

� Uranium world production must increase from 40 000 tons/year (current level) to 60 000 tons/year (level by 2015) at least.

� There are still unused uranium quantities "more than sufficient"to cover the demand.

� The rapidly increasing uranium price and demand, lead to the exploration of new resources and new mines to meet the needs of nuclear power plants.

� The conventional uranium resources are insufficient for an expanded global nuclear power program.

� The supply can be increased by the exploitation of unconventional resources.

� Uranium contained in phosphate deposits, clearly dominates unconventional resources.

� One solution is long-term extraction of uranium from phosphates.

� Worldwide totals of phosphate related resources could total as 22 million tons (OECD/NEA)

URANIUM MARKET ANALYSISURANIUM MARKET ANALYSIS

Morocco locationMorocco locationUranium resourcesUranium resourcesImbalance between supply and demandImbalance between supply and demandUranium demand forecastUranium demand forecastUranium market analysisUranium market analysisMoroccan uranium phosphatesMoroccan uranium phosphatesConclusionsConclusions

MOROCCAN URANIUM PHOSPHATESMOROCCAN URANIUM PHOSPHATES

� Phosphates ware discovered in Morocco in 1920.� The phosphates have always been exploited by the Moroccan

OCP Group (Office Chérifienne des Phosphates) created in 1920.� OCP has the monopoly on mining, processing and marketing of phosphates.

� Morocco holds 75% of Phosphate world reserves (85 billion tons) � It produces around 30.106 tons/year and should reach 55 by 2015.

� Uranium prospecting began in Morocco at the end of the second world war.

� the uranium content in Moroccan phosphates was discovered in 1946.

� Moroccan phosphate contains uranium at varying concentrations, usually between 100 and 150 ppm.

� In some deposits concentrations can vary from 500 to 600 ppm.

MOROCCAN URANIUM PHOSPHATESMOROCCAN URANIUM PHOSPHATES

� There are approximately 400 wet process phosphoric acid plants in operation worldwide.

� There is already a substantial feedback on uranium recovering from phosphoric acid .

� Eight plants for the recovery of uranium from phosphoric acid have been built and operated in the US since 1976 :- 6 in Florida- 2 in Louisiana

� Plants have also been built in Canada, Spain, Belgium …

MOROCCAN URANIUM PHOSPHATESMOROCCAN URANIUM PHOSPHATES

0

1

2

3

4

5

6

7

Million t

1. Morocco 6,9

2. USA 1,2

3. Mexique 0,15

4. Jordan 0,1

5. Others 0,65

MOROCCAN URANIUM PHOSPHATESMOROCCAN URANIUM PHOSPHATES

Approximate marine uranium inventories in phosphate deposits

� The estimated world annual capacity of uranium phosphates production is about 3700 tons.

� The Belgian company PRAYON has recovered 690 tons (min.) uranium from Moroccan phosphates.

� Morocco can be the world leader by producing 2840 tonsannually.

MOROCCAN URANIUM PHOSPHATESMOROCCAN URANIUM PHOSPHATES

� On Oct. 22, 2007, Areva signed an agreement with (OCP) to develop their cooperation and research initiatives regardingextraction of uranium contained in phosphoric acid producedfrom Moroccan phosphate ore.

� AREVA and the OCP plan to launch a joint study into the feasibility of an industrial site producing uranium fromphosphoric acid. (Areva Oct. 23, 2007)

MOROCCAN URANIUM PHOSPHATESMOROCCAN URANIUM PHOSPHATES

Morocco locationMorocco locationUranium resourcesUranium resourcesImbalance between supply and demandImbalance between supply and demandUranium demand forecastUranium demand forecastUranium market analysisUranium market analysisMoroccan uranium phosphatesMoroccan uranium phosphatesConclusionsConclusions

� Developing future nuclear power plants requires :- Fuel availability- Low cost Fuel over the power plant live

� Making unconventional uranium investments profitable� The Construction of an unconventional uranium recovery factory requires about 2 years.

� Countries starting a nuclear power program are well advised to think about its long term sustainability.

� Fuel supply does not depend on the goodwill of suppliers, but must secure power production in the long term.

� Morocco case :Achieving a sustainable power nuclear program requires securing of unconventional uranium.

CONCLUSIONS

THANK YOUTHANK YOU