Harikrishnan Hari Tulsidas

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UNFC-2009 Bridging for Nuclear Fuel and applications for Energy Basins : Unified reporting and management of all resources Harikrishnan Hari Tulsidas UNFC Workshop Santiago, Chile 9-12 July 2013 International Atomic Energy Agency

Rationale - 1 Are resources reported consistently within and across various sources? Uranium, Production and Demand The Red Book Analysis of Uranium Supply to 2050/2060 World Distribution of Uranium Deposits Database (UDEPO) World Thorium Deposits and Database (ThDEPO) Other technical reports

Rationale - 2 Sustainable regional development fuelled by clean energy sources Clean coal, hydrocarbons, nuclear and renewables in a selfcontained system. To provide energy, water and food security to the region. Synergize exploration and production of uranium, petroleum, coal Extract all valuable commodities from mined ores 70% of mine tailings now seen as a resource In many cases valuable commodities were not recognized in the beginning (e.g Cluff Lake tailings were re-processed for Au recovery) Residue recycle, reuse and local disposal. Using UNFC as the common reporting standard and a tool for managing all resources

Uranium resources Red Book 2011 UDEPO Data of 1 488 uranium deposits from 75 countries /OECD NEA Uranium 2011:, Production and Demand Total 7 096 600 tu Undiscovered : 10 400 000 tu Total 31 300 000 tu http://infcis.iaea.org

Dynamic Flow of resources Metal supply from production centre Economic Discovered Identified resources that are currently economic mostly in operating mines Undiscovered Undiscovered resources that if found now- would likely me mineable Higher costs or Lower prices Lower costs or Higher prices Sub economic Identified resources that are not now mineable Undiscovered resources that if found now-would not now be mineable

NEA- Classification Scheme Decreasing economic attractiveness Recoverable at costs <USD 40/KgU USD 40-80/KgU USD 80-130/KgU USD 130-260/KgU IDENTIFIED RESOURCES Reasonably Assured Reasonably Assured Reasonably Assured Reasonably Assured Inferred Inferred Inferred Inferred UNDISCOVERED RESOURCES Prognosticated Prognosticated Prognosticated Prognosticated Speculative Decreasing confidence in estimates

Aspects considered Consideration for recoverability Adjustment of estimate for past production Meaningful economic analysis of production cost Take into account all costs in economic analysis - such as infrastructure and rehabilitation following operation: direct costs of mining, transporting and processing costs of associated environmental and waste management costs of maintaining non-operating production units, where applicable capital costs that remain non-amortised capital cost of providing new production units indirect costs future exploration and development costs delineation to the stage that it is ready to be mined. Sunk costs are not normally taken into consideration. Avoid obsolete economic evaluation

NEA- Classification Identified resources Reasonably Assured (RAR) estimates based on specific sample data and measurements -RECOVERABLE Inferred estimates based on direct geological evidence in the extensions of well-explored deposits; but specific data inadequate - RECOVERABLE Undiscovered Prognosticated estimates based on indirect evidence in well-defined geological trends or areas of mineralisation IN SITU Speculative estimates based on indirect evidence and geological explorations IN SITU

Cost of production Revenue $/lb Producti on Costs $/t Marginal Cut of Grade ppm U 3 O 8 Marginal Cut of Grade + Basic Capital Repayment US$20/lb U 3 O 8 60 30 252 402 40 336 482 50 420 570 60 504 654 70 30 216 345 40 288 417 50 360 489 60 432 561 80 30 189 302 40 252 365 50 315 428 60 378 491 Minimum $30/t for mining and processing for large tonnage operations of >10Mt/year or more (includes C1 and C2 costs) Smaller operations will be in the range of US$40 to US$60/t or more Production efficiency will vary between 70% to 90% extraction CAPEX- Rule of Thumb: $100 to $150 per lb U 3 O 8 annual production e.g. 3Mlb U 3 O 8 annual production needs US$300M to $450M investment Minimum size for an economic operation: 3Mlb U 3 O 8 (1154 tu) annual production for at least 8 years 90 30 168 268 40 224 324 50 280 380 60 336 436 Paladin, 2012

Cost of production Cost Assume cost of production Class Classify resources Class Classify based on cost of production Cost Assume cost of production based on class

National Reporting IDENTIFIED RESOURCES UNDISCOVERED RESOURCES NEA/ Reasonably Assured Inferred Prognosticated Speculative Australia Measured Demonstrated Indicated Inferred Undiscovered Canada (NRCan) Measured Indicated Inferred Prognosticated Speculative United States (DOE) Russian Federation, Kazakhstan, Ukraine, Uzbekistan Reasonably Assured Estimated Additional Speculative A+B C1 C2 P1 P2 P3 UNFC* G1 G2 G3 G4 * UNFC correlation with NEA/ and national classification systems is still under consideration

Production terminology Production centres - a production unit consisting of one or more ore processing plants, one or more associated mines and uranium resources that are tributary to these facilities. Existing production centres are those that currently exist in operational condition and include those plants which are closed down but which could be readily brought back into operation. Committed production centres are those that are either under construction or are firmly committed for construction. Planned production centres are those for which feasibility studies are either completed or under way, but for which construction commitments have not yet been made. This class also includes those plants that are closed which would require substantial expenditures to bring them back into operation. Prospective production centres are those that could be supported by tributary RAR and Inferred, i.e., Identified, but for which construction plans have not yet been made.

Attempting alignment UNFC Class Sub-class E F G Status Description Commercial Projects Potentially commercial projects Non-commercial projects Exploration projects On Production 1 1.1 1,2 Existing Extraction taking place Approved for development Justified for development Development Pending Development on hold Development Unclarified Development not Viable 1 1.2 1,2 Committed 1 1.3 1,2 Planned 2 2.1 1,2,3 2 2.2 1,2,3 3.2 2.2 1,2,3 3.3 2.3 1,2,3 Prospective 3.2 3.1 4.1 Prognostic. 3.2 3.2, 3.3 4.2, 4.3 Speculative Funds committed and implementation under way Detailed feasibility studies completed Project activities ongoing to justify development in foreseeable future Project activities on hold; may be subject to significant delay Economic viability cannot be determined due to insufficient information No reasonable prospects for economic extraction in foreseeable future Based primarily on indirect data in well defined trends Based primarily on indirect data

Mapping cost of production Where cost of production can be assumed, Identified estimated at production cost less than or equal to the current market price would range from E1F1 to E2F2. Commercial projects: If a cost of production for a thoroughly explored resource under consideration (deposit) as equal to or less than USD 130/kgU and where sufficiently detailed studies of this project have been completed to demonstrate the feasibility of economic extraction by implementing the defined development project or mining operation; this project corresponds to classifications E1F1. Potentially commercial projects: Quantities of Identified reported at cost of production equal or less than USD 130/kgU shall correspond to UNFC-2009 requirements of E2 and F2.1 or F2.2 where: (1) project activities are on-going to justify development in the foreseeable future, or (2) are on hold and/or where justification as a commercial development may be subject to significant delay. Non-commercial projects: Quantities of Identified reported at cost of production in the category USD 130 260/KgU, or where the cost of production cannot be clarified, shall correspond to UNFC-2009 requirements of E3 and F2.2 or F2.3. In this case quantities are technically recoverable, however (1) economically viability cannot yet be determined due to insufficient information (sub-categories E3.2, F2.2) or (2) the resources are not expected to become economically viable in the foreseeable future (subcategories E3.3, F2.3).

Bridging

Bridging Reasonably Assured Reasonably Assured Cost of Production $130 / KgU Reasonably Assured + Inferred Cost of Production $130 / KgU

Energy Basin concept (1) Dominant fuels coal, oil & gas and uranium are to a large extent supplied from giant sedimentary basins. There could a linkage between the presence of coal / oil & gas and uranium, which is not well understood yet in terms its genesis or total energy flows in the basin. Some examples: Oil & gas and adjoining uranium in sedimentary basins of Kazakhstan; Oil & gas, coal and uranium in sedimentary basins in north China; Coal and possibly uranium and oil& gas in Gondwana basins of India; Coal and uranium; uranium and oil & gas in sedimentary basins of Texas, USA; Oil & gas and Uranium in Niger, Algeria, and other countries Uranium, chromium, vanadium, nickel and hydrocarbons in Bakken Shales, Canada; Uranium, manganese and hydrocarbons in Gabon; Uranium and oil & gas in sedimentary basins of Argentina; Uranium, thorium and rare-earths projects; Phosphates and uranium Middle East North Africa (MENA) region Karoo basin, Africa and Parana Basin, S. America, which is a source of coal and uranium At times large resources of minerals like phosphates are also seen to occur in such basins, close to oil & gas occurrences and the genetic link remains to be established. All the energy basins will have potential of various renewables energy sources

Energy Basin Concept (2) Unified and holistic approach to understand such energy basins will greatly aid the exploration and discovery of multiple energy sources in many basins. Holistic approach in developing such energy basins to extract multiple energy fuels like oil & gas, coal and uranium and renewables will aid the optimal and sustainable local development and conservation of all useful materials. For example uranium from deep levels in a basin, which could be uneconomic to mine conventionally, could be extracted economically with oil & gas; uranium could extracted from coal with suitable modifications to coal to liquid technology; and co-extraction of uranium, valuable elements and oil & gas from gas shales; co-extraction of uranium and hydrocarbons from off-shore basins etc. and combined with harnessing the power of sun, wind, tides and other renewable energy sources If properly understood and developed energy basins could be supply plentiful energy to meet the growing global demand, the supply of which is at present is based on a conventional compartmentalized developmental paradigm. Need for petroleum, uranium, coal, phosphate, other critical elements and renewable experts to talk to each other..

Kazakhstan Energy basin with U and hydrocarbons Possible link between Oil & Gas, migration of gas along faults, tectonic control of the localisation of roll fronts Jaireth et al. 2008

Bakken Shales, Canada: Gas, U etc

Bakken Shales

Sustainable Energy System Energy basin Oil, Gas Clean coal Uranium Single-axis Tracking Solar System High-temperature Gas Cooled Reactor Electricity Grid Demand-based Electricity Distribution Management System 700 0 Local Use Desalination Plant Thermal phosphate

Takeaway messages 1. Use UNFC-2009 to report uranium and thorium resources alongside other energy and other mineral resources 2. UNFC-2009 Bridging Document can aid transforming NEA/ cost categories to UNFC-2009 or vice-versa 3. Use UNFC-2009 to classify comprehensive extraction projects 4. UNFC-2009 to study the potential of energy basins and in its synergistic development

Thank you for listening Harikrishnan Tulsidas Nuclear Technology Specialist Nuclear Fuel Cycle and Materials Section International Atomic Energy Agency Tel: (+431) 2600 22758 Fax: (+431) 26007 22758 Room A26 19 Email: T.Harikrishnan@iaea.org