Significant uranium ore deposit found in Ordos

The discovery of a super-large uranium ore deposit in North China's Ordos Basin marks a significant step forward in securing the country's uranium resources, a critical component for its growing nuclear energy ambitions, said industry experts.

The super-large uranium ore deposit was found in the Jingchuan area of the Ordos Basin in January, the world's first uranium deposit discovered in aeolian sandstone within the basin, adding a new type of uranium ore to the known classifications, according to China Geological Survey under the Ministry of Natural Resources.

Industry experts believe the discovery of the uranium deposit will secure a stable domestic supply of uranium and significantly bolster China's energy security.

China has been seeking to reduce its reliance on foreign suppliers of uranium through increasing domestic uranium production amid geopolitical risks that could disrupt resource imports, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

"This discovery is more of a safeguard against potential supply chain vulnerabilities. The Ordos project is expected to play a critical role in supporting the rapid expansion of China's nuclear power sector, which is a cornerstone of the country's energy transition strategy," Zhao said.

Additionally, the project aligns with China's long-term goals of energy sustainability and independence, helping to secure the resources needed to maintain its position as a global leader in nuclear power development in the face of global uncertainties, he added.

As countries around the world are stepping up green energy transition and striving for carbon neutrality, demand for uranium — which is used to run nuclear power plants — is intensifying.

Over more than 60 years of development, China's natural uranium industry has come up with a complete industrial chain covering geological exploration, mining, refining and processing. It has also established a natural uranium supply system that combines domestic development, overseas growth, international trade and strategic reserves.

The new deposit is the first of its kind to be discovered in aeolian sandstone, a geological formation previously unexplored for uranium. The breakthrough underscores the potential for finding additional large-scale deposits in similar formations across China, according to the CGS.

China's discovery in aeolian sandstone opens a new frontier for uranium exploration worldwide, said Jin Ruoshi, chief scientist on uranium at the CGS.

This geological setting, coupled with low mining costs and reduced environmental impact, could revolutionize uranium mining and significantly expand the global resource base, Jin said.

China's focus on uranium exploration has intensified since 2021, with researchers leveraging advanced exploration methods and revisiting historical data accumulated from coal and oil surveys. The Ordos Basin, known for its abundance of natural gas, coal and petroleum, now adds uranium to its list of resources, signaling a broader scope for energy development in the region.

The CGS highlighted that aeolian sandstone is widely distributed across China, covering approximately 200,000 square kilometers in the Ordos Basin and additional areas in the Tarim, Junggar and Songliao basins. This widespread presence suggests the potential for additional discoveries, further enhancing China's uranium reserves.

Uranium exploration and development efficiency in China has significantly increased over the past few years, with the incremental resource amount in the past 10 years accounting for one-third of China's total confirmed reserves, said China Nuclear Uranium Co Ltd, a subsidiary of Chinese nuclear giant China National Nuclear Corp.

"The discovery is a game-changer for China's energy security," said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

"It demonstrates how innovation in exploration methods can unlock untapped potential, offering a blueprint for other nations looking to enhance their resource independence."

The broader implications of the discovery are likely to influence global uranium markets, as the new geological category of deposits expands the exploration horizon. With this breakthrough, China is not only advancing its domestic resource base, but also establishing a new benchmark in global uranium exploration, he added.