In the last few weeks, Azarga Resources Limited, a Hong Kong investment firm, has neared half ownership of Powertech Uranium. With Azarga’s purchase of shares of Powertech stock from the Belgian firm Synatom, Azarga reached 45.1% ownership of Powertech. Powertech’s offices in Canada and New Mexico will be closed, and two Canadian board members will be replaced.
In addition to its current ownership, Azarga has loaned Powertech $3.6 million. Under an agreement between the companies, the Chinese firm can convert this loan to shares of stock, if Powertech doesn’t pay them back by July 22, 2014. If this conversion occurs, Powertech will become a Chinese company with Azarga owning 47.6% of the company.
China is one of the fastest-growing markets for uranium and hopes to expand its use of nuclear power. Russia and India are the other two largest markets for uranium. All three countries have both nuclear power and nuclear weapons programs. “I think that the likelihood that Powertech will become owned by a company from the United States’ largest rival should raise additional concerns about uranium mining restarting in the Black Hills,” according to Lilias Jarding of the Clean Water Alliance. “As Black Hills residents, we don’t want contribute to China’s nuclear program.”
“We have enough uranium resources to meet the United States’ needs into the 2020’s,” adds Clay Uptain, President of the Black Hills Chapter of Dakota Rural Action. “We don’t need more uranium here, so it’s logical that uranium mined here would end up somewhere else. We would be left with contaminated water, while a Chinese company could gain the profits from the mining. I don’t want to see this happen.”