News from Shanghai is that the State-owned China National Nuclear Corporation is in talks with uranium miner UraMin Incorporated. The objective of the talks appears to be to bring the two organisations closer.

Liu Xuehong, Deputy General Manager of the Chinese corporation’s uranium procurement unit has said that talks are in the initial stages. Is this a prelude to a takeover bid we wonder? Or maybe the Chinese would be satisfied with a long-term arrangement to take delivery of UraMin’s uranium at mutually advantageous prices. News of the talks will certainly put the spot light on UraMin and we should see their stock price benefit from the interest shown by the Chinese. In these situations the more uncertainty there is, the more stock price volatility can be expected. We guess that this it is case of watch this space and see how these developments unfold.

Its also interesting to note that Sprott Asset Management Incorporated have recently increased their stake in UraMin to just over 13 million shares or 4.78%, a good sign.

Taking a step back and looking at the bigger picture, can we expect more of the same? An absolute YES! The Chinese cannot continue choking themselves with coal fired power plants. They must know what their future energy requirements are and therefore they need to get into position before the rest of the world realizes that their demands are indeed massive.

We have written about China a few times and we see this move as a tiny part of their much bigger energy jigsaw.

In our opinion any uranium miner of substance will be on a list somewhere in Shanghai entitled:

CRITICAL TO OUR ENERGY NEEDS: MUST ACQUIRE

So, we will continue to hold on to our uranium stocks and add to the portfolio as and when we can. We are still confident that our prediction of $200/lb will materialise thus boosting these stocks to much higher levels and a little Merger and Acquisition activity will provide the spice so stay awake!