case study: considerations related to the application of unfc … · 2014. 5. 1. · luis lópez...

Luis López

CNEA

[email protected]

Case study:

Considerations Related to the Application of

UNFC-2009 to Uranium Resources in Argentina

United Nations Economic Commission for Europe

Expert Group on Resource Classification

Fifth Session

Hari Tulsidas

IAEA

[email protected]

29 April - 2 May 2014

Geneva, Switzerland

• NUCLEAR FUEL CYCLE IN ARGENTINA

• URANIUM RESOURCES IN THE OECD-NEA / IAEA SCHEME

• URANIUM RESOURCES IN THE UNFC-2009

• DISCUSSION

• FINAL CONSIDERATIONS

OUTLINE

NUCLEAR FUEL CYCLE

Source: IAEA, 2010

EMBALSE

648 Mwe

Natural U

ATUCHA II (to be put in operation)

745 Mwe Natural U

ATUCHA I

357 Mwe

Slightly Enriched U

b

c

ARGENTINE NPPs

0 1000 km

N

a

a

c

b

Reactor Location Model Net capacity First power

? ? PHWR

(CANDU-6)? 700 MWe ?

CAREM 25 Buenos Aires CAREM 25 MWe 2017?

ARGENTINE POWER REACTORS UNDER

CONSTRUCTION AND PLANNED

Source: WNA, 2012; CNEA, 2013

OPERATION START

REMAINING

OPERATION DEMAND

Atucha I

Embalse

Atucha II (startup in progress)

CAREM (under construction)

1974

1984

2014

2017

2014 – 2027

2014 – 2033

40 years

40 years

U DEMAND IN ARGENTINA

Total 6,500 t U

NPP

Current Consumption: 220 t U per year

800 t U

1,400 t U

3,700 t U

600 t U

EVOLUTION OF U PRICES

Price – April 2014 = USD 33 / lb U3O8 = USD 86 / kg U

Source: UX Consulting Company, 2014

Closing of U

production in

Argentina

YELLOWCAKE IMPORTS

KAZA, CANADA, CZECH REP

NUCLEAR FUEL CYCLE IN ARGENTINA

FUEL FABRICATION

CONUAR S.A.

UO2 CONVERSION

DIOXITEK S.A.

D2O FACILITY

ENSI S.E.

• In 2011, CNEA reported about 20,000 tonnes of uranium (tU)

as Identified Resources (Reasonably Assured Resources +

Inferred Resources) for the production cost category <130

USD/kgU (NEA/IAEA, 2012 ).

• In addition, about 11,000 tU of Canadian National Instrument

43-101 (NI 43-101) certified resources have been reported in

recent years by public/ private mining companies (U3O8

Corporation, 2013 ; UrAmerica Ltd., 2014 ).

• The total uranium resources of Argentina are thus more

than 31,000 tU in the aforementioned Identified Resources

category.

URANIUM RESOURCES IN ARGENTINA

Deposit Type RAR t U ≤ USD 130/kgU

IR t U ≤ USD 130/kgU

Sierra Pintada Volcanic-

related 3,900 6,110

Cerro Solo Sandstone

hosted 4,420 4,810

Don Otto Sandstone

hosted 130 300

Laguna Colorada Volcanic-

related 100 60

Laguna Salada Surficial 2,430 1,460

Meseta Central Sandstone

hosted - 7,965

Sub Total 10,980 t U 20,705 t U

Total 31,685 t U

URANIUM IDENTIFIED RESOURCES IN ARGENTINA

NEA/IAEA

CLASSIFICATON

SCHEME

Source: NEA-IAEA,

2012; U3O8 Corp, 2012;

UrAmerica, 2013-2014

Incre

as

ing

eco

no

mic

att

rac

tive

ne

ss

Increasing confidence in estimates

Bridging

Document

NEA/IAEA

UNFC-2009

URANIUM RESOURCES IN ARGENTINA

For the uranium resources

of different projects of

CNEA and mining

companies, the criteria of

UNFC-2009 concerning

social and economic

viability (E), technical

feasibility (F) and

geological knowledge (G)

were defined at the sub-

category level and

grouped into major

classes considered in this

classification system.

URANIUM RESOURCES/ PROJECTS IN ARGENTINA

Project

UNFC NEA/IAEA Total

tU Class Sub-class Categories Resources

tU Status

Resources

tU (< $130/kg)

Cerro

Solo

Potentially

Commercial

Projects

Development

Pending

E2 F2.1 G1 2420

Prospective RAR: 4420

9230 E2 F2.1 G2 2000

E2 F2.1 G3 4810 IR: 4810

Sierra

Pintada

Potentially

Commercial

Projects

Development

On Hold

E2 F2.2 G1 2700

Prospective RAR: 3900

10010 E2 F2.2 G2 1200

E2 F2.2 G3 6110 IR: 6110

Laguna

Salada

Non

Commercial

Projects

Development

Unclarified

- -

Unclarified RAR: 2430

3890 E3.2 F2.2 G2 2430

E3.2 F2.2 G3 1460 IR: 1460

Meseta

Central

Non

Commercial

Projects

Development

Unclarified

- -

Unclarified -

7965 - -

E3.2 F2.2 G3 7965 IR: 7965

Don Otto

Non

Commercial

Projects

Development

Unclarified

E3.2 F2.2 G1 70

Unclarified RAR: 130

430 E3.2 F2.2 G2 60

E3.2 F2.2 G3 300 IR: 300

Laguna

Colorada

Non

Commercial

Projects

Development

not Viable

E3.3 F2.3 G1 80

Not Viable RAR: 100

160 E3.3 F2.3 G2 20

E3.3 F2.3 G3 60 IR: 60

URANIUM RESOURCES/ PROJECTS IN ARGENTINA

(31,685 t U) UNFC-2009 – NEA/IAEA

Source: López, Tulsidas, 2014

Type: Sandstone

Subtype: Basal channel (U, Mo, Re)

CERRO SOLO U DEPOSIT

San Jorge Basin

(Cretaceous)

54º

W

78º

W

66º

W

56º S

48º S

40º S

32º S

24º S200 km

200 km

Sedimentary Rocks

Quaternary volcanics.

Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic

Precambrian Paleozoic

Igneous and Metamorphic Rocks

Quaternary

Cretaceous-Tertiary volcanics

Mesozoic volcanics

Paleozoic volcanics

Mesozoic-Cenozoicintrusives

Paleozoic-Mesozoic intrusives

Precambrian

undifferentiated

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Source: Benítez et al, 1993; Bianchi & Páez, 2005

The increase in exploration efforts has led to a significant increase

in uranium resources and their level of knowledge, especially in the

area of Cerro Solo, where the tonnage and grade estimated is

expected to ensure sustained uranium production in the future.

Source: CNEA, 2012


• Uranium, thorium and

plutonium were declared as

nuclear elements.

• The nuclear prospecting and

exploitation of nuclear

mines was of public utility and

a higher order than any

other prospecting or mining.

NATIONAL LEGAL FRAMEWORK

1956 – 1997

• Mineral resources belong to the Provincial States as

established by the National Constitution.

• Thorium and Uranium are declared as nuclear

minerals.

• The CNEA is empowered to make a decision on the

mining or preserving reserves of Cerro Solo and

Sierra Pintada uranium deposits.

• The CNEA may prospect, explore, mine nuclear

minerals under the general provisions of the National

Mining Code.


1997 – Present

• Uranium can be explored and exploited by third

parties under a legal license by a Competent

Provincial Authority.

• The National State shall have the first option to

purchase nuclear minerals produced in the country.

• Uranium exportation can be authorized by the

National State while internal supply and final

destination are guaranteed.


1997 – Present

• The identified uranium

resources in Argentina are

mostly located in the

provinces of Chubut and

Mendoza.

• These are areas where no

metallic mineral mining

projects are in operation.

• In addition, legislation is in

place that markedly restricts

uranium production and

which needs to be taken

into account when studying

the social viability of the

projects.

U PROJECTS

LOCATION

Chubut Provincial Law No. 5001/2003 prohibits open pit mining.

Esquel (Au)

CHUBUT PROVINCE LEGAL FRAMEWORK

CHUBUT PROVINCE LEGAL FRAMEWORK

Cerro Solo (U)

Navidad (Ag, Pb, Cu)

Projects need to wait for the Chubut provincial territory zoning

provisions of Law 5001/2003, as well as the introduction of a

mining regulatory framework for this jurisdiction.

The proximity of Cerro Solo to the Navidad project could play a

positive role regarding that issue.

• To define the economic feasibility of CNEA’s

projects, uranium prices in the international

market are taken as a reference, not as a

determining factor, considering that the raw

material has a bearing of five to seven per cent in

the total cost of nuclear energy in the country.

• Argentina so far has not pursued the objective to

obtain dividends from the sale of uranium in

international markets.

• For domestic use, uranium is imported which has

implications for security of supply.

ECONOMIC ISSUES OF CNEA’S PROJECTS

The Cerro Solo

project appears to be

the most promising

project, and with

realistic assumptions

of possible market

conditions and

obtaining social

licence, there are

prospects for

extraction in the near

future.


CERRO SOLO U DEPOSIT (9,230 t U)

UNFC-2009

CLASS: POTENTIALLY COMMERCIAL PROJECTS

SUBCLASS: DEVELOPMENT PENDING

E = 2 F = 2.1 G = 1, 2, 3

Type: Volcanic-related

Subtype: Volcano-sedimentary

SIERRA PINTADA U DEPOSIT

San Rafael Basin

(Lower Permian)

54º

W

78º

W

66º

W

56º S

48º S

40º S

32º S

24º S200 km

200 km

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Source: Salvarredi, 1999; Navarra, 2001-2006

MENDOZA PROVINCE LEGAL FRAMEWORK

• It was the last deposit in operation in the country when the

closing of U production was decided for economic

reasons.

• The operation of uranium mining and processing will

require major changes to the legislation, such as

permitting of open pit mining and the use of sulphuric

acid, both which are currently forbidden by Law 7722/2007.

SIERRA PINTADA U DEPOSIT (10,010 t U)

UNFC-2009

CLASS: POTENTIALLY COMMERCIAL PROJECTS

SUBCLASS: DEVELOPMENT ON HOLD

E = 2 F = 2.2 G = 1, 2, 3

54º

W

78º

W

66º

W

56º S

48º S

40º S

32º S

24º S200 km

200 km

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Type: Sandstone

Subtype: Tabular (U,V)

Salta Basin

(Cretaceous - Tertiary)

DON OTTO U DEPOSIT

Source: Gorustovich, 2010; López et al 2010 - 2013

When mapping to the E, F and G

axes, this is classified as a

"non-commercial project" where

development is not clarified.

However, it should be

highlighted that this deposit

was previously in operation and

current exploration/evaluation

studies yielded very

encouraging results, which

could make it possible in the

future to move the project to a

higher UNFC-2009 class.

CONSIDERATIONS ON DON OTTO U PROJECT

CLASS: NON-COMMERCIAL PROJECTS

SUBCLASS: DEVELOPMENT UNCLARIFIED

E = 3.2 F = 2.2 G = 1, 2, 3

DON OTTO U DEPOSIT (430 t U)

UNFC-2009

54º

W

78º

W

66º

W

56º S

48º S

40º S

32º S

24º S200 km

200 km

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Type: Volcanic-related

Subtype: Volcano-sedimentary

LAG. COLORADA U DEPOSIT

San Jorge Basin

(Cretaceous)

Source: Fuente & Gayone, 1999

The limited resources of Laguna Colorada make it

difficult to envisage extraction at present, unless the

characteristics of the ore will allow treatment in a plant

that might potentially be located in the future in the area

of Cerro Solo.

CONSIDERATIONS ON LAGUNA

COLORADA U DEPOSIT


SUBCLASS: DEVELOPMENT NOT VIABLE

E = 3.3 F = 2.3 G = 1, 2, 3

LAGUNA COLORADA U DEPOSIT (160 t U)

UNFC-2009

Type: Sandstone

Subtype: Basal channel / Roll Front ?

MESETA CENTRAL PROJECT

San Jorge Basin

(Cretaceous)

54º

W

78º

W

66º

W

56º S

48º S

40º S

32º S

24º S200 km

200 km

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Source: UrAmerica, 2013 - 2014

MESETA CENTRAL PROJECT (7,965 t U)

UNFC-2009



E = 3.2 F = 2.2 G = 3

Source: UrAmerica, 2013 - 2014

54º

W

78º

W

66º

W

56º S

48º S

40º S

32º S

24º S200 km

200 km

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Sedimentary Rocks


Tertiary

Cretaceous

Jurassic

Triassic

Mesozoic

Devonian

Paleozoic



Quaternary


Mesozoic volcanics

Paleozoic volcanics



Precambrian

undifferentiated

Type: Surficial

Subtype: Fluvial valley (U,V)

LAGUNA SALADA U DEPOSIT

Modern Cover

Source: U3O8 Corp., 2013



E = 3.2 F = 2.2 G = 2, 3

LAGUNA SALADA U DEPOSIT (3,890 t U)

UNFC-2009

Source: U3O8 Corp., 2013

The application of

UNFC-2009 as a

complement to the

NEA/IAEA

Classification

contributes to both a

better understanding

of the availability of

reliable resources in

Argentina and how

these resources can

contribute to the

national nuclear

energy programme.

FINAL CONSIDERATION

Case study:

Considerations Related to the Application of

UNFC-2009 to Uranium Resources in Argentina.

United Nations Economic Commission for Europe

Expert Group on Resource Classification

Fifth Session

29 April - 2 May 2014

Geneva, Switzerland THANK YOU!

Luis López

CNEA

[email protected]

Hari Tulsidas

IAEA

[email protected]

case study: considerations related to the application of unfc … · 2014. 5. 1. · luis lópez...

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