State-run power major NTPC has floated a tender to acquire uranium mining assets overseas, aiming to secure long-term fuel supplies for its planned nuclear power expansion. The company seeks to contribute 30 gigawatts (GW) toward India's national nuclear capacity target.
NTPC's Nuclear Expansion Strategy
According to the tender document, NTPC has initiated a nuclear capacity addition plan to help achieve the government's strategic target of 100 GW of nuclear power by 2047, supporting India's net-zero emissions goal by 2070. To accelerate the program, NTPC established a wholly owned subsidiary, NTPC Parmanu Urja Nigam Limited (NPUNL), to independently execute nuclear power projects.
The scale of this expansion requires a sustainable uranium supply. Given limited domestic uranium reserves and mining capacity, NTPC has proposed exploring and acquiring uranium mining assets abroad.
Consultant Appointment and Target Countries
As part of the process, NTPC intends to appoint a consultant to identify and evaluate suitable uranium mining opportunities globally. The consultant will assist in identifying available mining assets and assessing acquisition opportunities. Potential target countries include Australia, Canada, Kazakhstan, and South Africa, among others.
The tender document states: "NTPC intends to engage a consultant to assist in identifying and evaluating available global opportunities for acquisition of uranium mining assets. The potential target country may include, inter alia, Australia, Canada, Kazakhstan, South Africa, etc. NTPC shall define its annual uranium quantity requirements to be produced and sourced from prospective overseas mines."
Scope of Work for Consultant
Based on NTPC's annual uranium requirements, the consultant—in consultation with NTPC and its joint venture or subsidiary—will prepare, invite, process, evaluate, and finalise a global Request for Proposal (RFP) for suitable acquisition opportunities. The consultant will also conduct a comprehensive assessment of the global uranium mining sector and identify opportunities across the value chain, including greenfield projects, brownfield or development projects, and operating mines.
The scope of work includes preparing the RFP, defining technical and financial qualification criteria, evaluating bids, and preparing a shortlist of eligible counterparties. Following the shortlisting process, the consultant will undertake detailed techno-commercial evaluations of the identified assets using internationally accepted valuation methodologies and industry best practices.
Government's Nuclear Power Target
The move aligns with the Government of India's strategic target of achieving 100 GW of nuclear power capacity by 2047, a key component of the country's goal to attain net zero emissions by 2070. NTPC's planned 30 GW contribution represents a significant portion of this target, underscoring the importance of securing uranium supplies through overseas acquisitions.
