Jordan Signs Nuclear Cooperation Agreement with Rio Tinto to Explore Uranium Reserves

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Researched by Industrial Info Resources (Sugar Land, Texas)--Jordan, unlike its neighbors with abundant oil reserves, is facing a severe energy crisis. The country currently caters to nearly 96% of its energy requirements through imports and incurs a staggering expense of 20% of its gross domestic product. In an initiative to address energy security issues and to decrease the country's dependence on imported fuels, Jordan launched a nuclear power program in 2007. The country has since inked a number of mining and exploration deals with leading companies in the sector from Canada, France, South Korea, China and the United Kingdom.

The latest in the series of agreements is a memorandum of understanding signed between the Rio Tinto Group (NYSE:RTP) (London) and Jordan's government for uranium exploration. Rio Tinto, a leading mining and energy-resources conglomerate, will explore different regions of Jordan for uranium, zirconium and thorium reserves. According to the 18-month agreement, the company will finance the exploration costs. The current agreement is preliminary in nature, but it is likely that the two sides will come together for other projects in future.

Jordan has vast reserves of minerals such as uranium and phosphate to pursue its ambitious nuclear program. It is estimated that the country can extract 80,000 tons of uranium from low-cost reserves and an additional 130,000 tons of uranium from its phosphate reserves of 1.2 billion tons. The country intends to have its first nuclear power plant operational by 2016. According to Jordan's National Nuclear Energy Strategy, the country plans to increase the share of nuclear power to 30% of total energy produced by 2030.

Jordan's nuclear agreements with other countries are for peaceful purposes, such as using nuclear power to produce electricity and run water desalination plants. The Jordan Atomic Energy Commission (Amman), Atomic Energy of Canada Limited (Ontario, Canada) and SNC-Lavalin Group Incorporated (TSX:SNC) (Montreal, Quebec) recently signed a nuclear cooperation accord for peaceful use of nuclear power. According to the agreement, Canada will provide technical assistance and training in various aspects, including nuclear safety, development of nuclear power plants to generate electricity, uranium extraction, and application of nuclear energy in other fields such as medicine and agriculture.

Jordan has also entered into a nuclear cooperation agreement with France on similar terms as the one with Canada. The agreement with French conglomerate Areva SA (EPA:CEI) (Paris) will help Jordan in areas of nuclear power generation and water desalination. Areva, in exchange, obtained uranium exploration rights in southern parts of Jordan.

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