by damiandude

How China’s Five-Year Plan Could Affect US Utilities

According to China’s Ministry of Land Resources, China plans to build up “sufficient reserves” of uranium and other minerals, in a new five-year government plan. The ministry said it would be stockpiling strategic reserves of uranium, copper, aluminum and other key minerals because of rising demand for those commodities. The Chinese also wish to avoid supply disruptions by hoarding uranium and other minerals, over the next few years.

Until now, you’ve probably taken for granted a steady, reliable source of electricity. A large part of your dependable energy came about because of the nuclear energy generated by the 103 nuclear reactors in 30 states. Without a steady supply of uranium to power those nuclear reactors, the U.S. electrical transmission network suffers a 20 percent loss. China’s new five-year plan to stockpile uranium had better be a Wake-Up Call to U.S. utilities. If they missed the import of China’s announcement, we are all going to be in a heck of lot of trouble before this decade ends.

Since June 2004, we have warned of supply disruptions for uranium. David Miller, who has since become President and Chief Operating Officer of Strathmore Minerals, argued at the time, “In my opinion, no one has any extra uranium to sell on the spot market. There’s just not excess inventory that people are unloading in the spot market.” We interviewed Miller again in November 2005, for an article entitled, “China Demand for Uranium, World Growth in Electricity Demand to Drive Uranium Price Higher.” Miller warned us, “China is the future wild card… what they are planning for nuclear is probably the most aggressive program in the world.” Miller added in his explanation, “All the new production is already factored into the future market for uranium. We’re underwater right now without building one more nuclear power plant.”

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In mid April, during an interview with Sprott Asset Management Market Strategist Kevin Bambrough, we asked him about the Chinese. He answered, “Why shouldn’t they have strategic uranium reserves to supply their nuclear reactors? It makes sense to have a good stockpile of uranium considering the relative cost of nuclear power versus anything else.” And now, the Chinese plan to build up a strategic reserve of uranium for their aggressive nuclear program.

In another interview, also published in April, Gene Clark, CEO of TradeTech LLC warned us, “In reality, the U.S. utilities, which tend to wait longer to contract, may be the ones on the losing end because the Chinese and the Indians will contract early. The implication of current group-think is that the Chinese and Indians are not going to be able to find enough uranium for their new plants. But, they are committing for supplies way out into the future. When the U.S. utilities come to the market, they’re going to look around say, ‘Oh blankety- blank, what happened? Where’s the uranium?’ They’ll be the ones that sat around. I think that is what’s going to happen unless things really change in the way contracting is done in the United States.”

U.S. utilities have been cautioned, warned and advised that the Chinese demand for uranium could very well create a serious energy crisis for the U.S. grid. Nuclear reactors help supply the baseload generation for the U.S. electrical grid. Nuclear power plants provide stability to the electricity transmission network. About one-fifth of electrical generation is derived from nuclear power. Nuclear plants are running at more than 89 percent capacity. U.S. utilities are fiddling around like Nero, who watched Rome burn, hoping that promises of increased uranium production will stem the dramatic uranium price rise.

Severe strains in natural gas supplies, combined with the ongoing uranium supply squeeze, could very well put U.S. consumers on rations for their electricity. Can’t happen, you say? Ask the Brits about how business was conducted in their country, in late 1973 and early 1974, during the Arab oil embargo crisis. Or more recently, California’s rolling brownouts.

An electrical energy crisis is in the making, while U.S. utilities are patiently hoping or praying the price of uranium stop climbing. UxC President Jeff Combs wasn’t kidding when he urged U.S. utilities, during our interview, to “support the expansion of (uranium) production in the United States.” And if you don’t let your local utility know about the upcoming electrical energy crisis, then perhaps it will be your lights they may someday be turning out. The irony of ironies: All of those sweet anti-nuclear folks in Vermont, who depend upon nuclear energy for more than 70 percent of their electricity? They’ll be the first to suffer the most, if U.S. utilities don’t respond to China’s five-year plan.

Union Home Minister P Chidambaram has offered to resign during his meeting with Congress President Sonia Gandhi on Monday to discuss the 2G note sent by the Finance Ministry to the Prime Minister’s Office, sources have said.
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by YoTuT

National forestry development plan introduced by the new turn for the better wood panel

It is learned that the State Forestry Administration, the National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, State Administration of Taxation jointly issued the five departments has the “Forest Industry Promotion Plan (2010-2012)”, as a guide forestry action plan to address the financial crisis program. “Forestry Industry Promotion Plan” put forward three years to support 100 key state-level forestry enterprises and 10 leading feature of industrial clusters, industrial output value of forestry to maintain 12% annual growth rate.

Wood-based panel production steady at 100 million cubic meters

The “Forestry Industry Promotion Plan” is subject to the direction and focus of the most serious financial crisis, plywood and other timber industry and related industries.

According to “planning”, the implementation of forestry industry restructuring and revitalization of development, China’s forestry industry output will be 1.44 trillion yuan in 2008 to 2.26 trillion yuan in 2012. Wood-based panel production has stabilized at about 100 million cubic meters. International forest products trade volume reached over 90 billion U.S. dollars, of which export volume at or more than 50 billion U.S. dollars. Plywood, wood flooring, furniture, doors and other superior products remain the world’s first export status. Plywood-based wood processing enterprises have to completely overhaul the basic out inferior products and equipment. Forestry industry employment of 4,500 people from 2008 up to 5700 people. Forestry industry and the second to the forestry eco-tourism as the leading tertiary industry output value of forestry proportion increased to 50% and 18% or more.

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The “plan” put forward to promote forestry brand building and market access, with two years on the 70 kinds of wood-based panel has issued national standards and industry standards, conduct comprehensive checks to carry out certification of forest products in China brand.

The “planning” also made a series of policy measures to revitalize the forestry industry. Including the central government on high-quality seeds and seedlings required for planting subsidies, and gradually expand the scope of the pilot; continue to increase the support base construction of Camellia oleifera. Will be charged at the standard silviculture fund revenue from the sale of forest products 20% to 10%.

China Wood network, analysts said, because the United States is China’s major forest products exporting countries, imports of plywood from China every year about 200 million cubic meters of imported wood furniture more than 30 billion U.S. dollars, accounting for nearly 50% of China’s exports, many other forest products imported from China also, the U.S. economic recession, so China’s forest product exports to the U.S. overall drop in consumption has been sluggish Jiashang Western Europe and other countries, so China’s forest products exports of Gexiangzhibiao up fallen sharply Jinnian difficult to restore within the to 2007 levels. Published “Forestry Industry Promotion Plan” is to stabilize the foreign demand, boosting domestic market.

Policies to support good forestry leading enterprises

“Planning” to point out that three years will focus on supporting 100 national forestry companies and 10 leading feature of industrial clusters, and gradually form the forest resources for training, plywood, furniture, wood pulp paper making, bamboo products, forest products, wood The grain and oil products, bio-pharmaceutical, machinery manufacturing and forestry biomass energy and other pillar industries.

Specific support policies, including, to encourage qualified forestry industry leading enterprises in the bond market by issuing various types of bond instruments, production and operation to raise the funds needed. Encourage forest planting in forestry, forest products processing and good operating performance and credit quality collection of small and medium enterprises issue bonds. Encourage various economic organizations outside the forest to various forms of investment based forestry projects. Encourage the various security institutions to provide security for financing forestry operations to forest right on the mortgage as the main security measures in counter-guarantee company, the security can be enlarged to 10 times multiple.

Analysts believe that, “Forest Industry Promotion Plan” put forward relevant measures to expand the financing channels of forestry companies, control of forest resources has been beneficial to the listed companies of scale, to become bigger and stronger. According to Shanghai Securities analyst Qi Minhua statistics, forestry listed companies, Ji Lin forest, Wing forestry, forestry Jinggu 450 million mu of forest resources were owned, 181 acres and 51 acres, plate type companies, large Asian science and technology, Wei Hua shares or Darling industry planning resources were 300 million mu, 120 mu and 100 mu, in addition to such Paper Class of Yueyang Paper Company also has the hands of the large number of forest resources and materials.