Both Molybdenum And Uranium Vital For Nuclear Reactors

Molybdenum plays a more vital role in the global				possibly the United States).
nuclear renaissance than you might suspect.				Existing reactors along coastal areas in Asian
Without the silvery white metal, the world's				countries presently breaks down as follows: Japan
energy infrastructure would somewhat suffer.				(57), South Korea (26), China and Taiwan (19) and
But, nuclear power plants would be set back at				India (11). Because these are the most prone to
least two decades. The new high performance				seawater or brackish corrosion, they are also the
stainless steels (HPSS) contain as much as 7.5				likely candidates for upgrading existing condenser
percent molybdenum and can add more than				tubing to high alloy stainless steel. And their new
three times the life to the world's aging nuclear				reactors are likely going to be constructed along
fleet condenser tubes.				their coasts, requiring the super austenitic grades.
During the early construction of nuclear power				As an aside, of the previously mentioned 190
plants, steam condensers relied upon copper base				nuclear power plants which had replaced their
alloys - brass and copper nickel - for heat transfer				condensers with HPSS, 45 percent used fresh
capabilities. These alloys have high coefficients of				water as coolant. Those plants chose the high
thermal conductivity required in steam generation				alloy steel as a 'fail-safe' measure to prevent
to power nuclear reactor turbines. But				interrupted service or a potential reactor incident.
copper-alloyed tubes were being replaced too				The United Nations estimates that two-thirds of
quickly - with an average life of eight years -				the planet's population will be living with water
because of sulphide pitting. Hardest hit were those				stress by 2025. Global freshwater scarcity may
reactors using polluted seawater to cool their				demand the use of brackish or seawater as
reactors.				nuclear reactor coolant. To prevent the
Over the past 30 years ago, nuclear utilities slowly				accompanying corrosion, the higher-percentage
began turning to the super austenitic stainless				molybdenum alloy, specifically the 654 SMO(R),
steels as one way to make their nuclear reactors				could emerge as the condenser tubing material of
last longer. The addition of molybdenum, initially				choice. Either the 254 SMO(R) or the 654 would
starting with percentage of less than four				be utilized in desalination plants required to
percent, helped increase the thermal conductivity				overcome water shortages in the hardest hit
lacking in nickel, iron or steel. At nuclear stations				areas: North Africa, the Middle East and West
which replaced the copper alloys with HPSS				Asia.
condenser tubes, 57 percent rated the thermal				Typically, nuclear power plant condenser tubing
performance good and all but one rated it normal.				requires approximately 520,000 feet of stainless
Molybdenum had helped overcome the thermal				steel. According to the International Molybdenum
hurdle.				Association (IMOA), larger reactors could utilize up
A large number of the 190 nuclear reactors,				to one million feet of stainless steel. With the
which now utilize HPSS condenser tubes, reported				higher molybdenum grades found in the super
an average life in excess of 18 years. The longest				alloys, new nuclear reactors could require tens of
stainless steel condenser installation has remained				thousands of metric tons of molybdenum.
in service more than 26 years, according to a				By comparison, nuclear waste containers
study done several years ago. According to a				proposed for the Yucca Mountain nuclear waste
report published in 2000, more than 100 million				repository were forecast to consume about
feet of super-alloy stainless steel tubes have				15,000 metric tons of moly. While this project
replaced the older, copper-alloy tubing.				may or may not proceed as planned to the
Condensers are large heat exchangers used in				construction phase, the Nuclear Energy Institute
nuclear power plants. Condensers have thousands				(NEI) has proposed regionalized storage of spent
of tubes horizontally mounted to condense and				fuel.
recover the steam passing through turbines. Each				Should comparably designed storage canisters be
low-pressure turbine generally has a condenser,				utilized to 'temporarily' contain the nuclear waste,
which also maintains a vacuum to optimize the				it is likely molybdenum will play a key role.
turbine's efficiency.				According to the U.S. Government's Energy
Water fouling deposits were cited as a major				Citation Database, as published by the
problem at many reactors, especially with				Department of Energy's Office of Scientific and
condenser tubes where seawater or high-chloride				Technical Information, "Alloys with combined
brackish water was the coolant. Pitting corrosion,				chromium plus molybdenum contents greater than
tube sheet crevice corrosion and galvanic				30 percent were the most resistant to general
corrosion put the tubes at risk for leakage.				and local attack." This was the conclusion reached
Plugging, mud, or detritus accumulating in				after corrosion scouring tests were performed on
condenser tubes reduce a power plant's efficiency.				stainless steel and nickel-based alloys to immobilize
Utilities use cleaning systems with small, abrasive				high-level, radioactive waste.
sponge-like balls to keep the tubes clean and test				Another aspect where high-percentage
for tube defectives with probing devices. Tube				molybdenum stainless steel would double up is
thinning and corrosion create the opportunity for				with the expansion of nuclear desalination plants. In
tube leakage. This can not be tolerated because				the past, and in our publication, "Investing in the
chemicals such as sodium and chlorides find their				Great Uranium Bull Market," we have discussed
way into the reactor vessel or steam generator.				the rise of nuclear desalination across those
Upgrading the steam condenser tubing to stainless				coastal areas, requiring far more freshwater than
steel also plays a vital role in the 'power uprate'				can possibly be transported through other means.
program utilities have used to increase generating				The World Nuclear Association (WNA) has
capacity for existing reactors as we recently				reported of numerous such desalination projects
discussed. The more advanced uprate program				in progress.
could add up to 20-percent capacity to existing				Will The Energy Bull Have Sufficient Moly?
U.S. nuclear reactors.				From nearly every energy project - oil, gas, coal
Different Molybdenum Alloys				and nuclear, and for water, molybdenum demand
There are several HPSS manufacturers for				will continue increasing. Super austenitic grades
nuclear reactor condensers. The most prominent				demand a higher moly content to combat
in the nuclear sector include Pennsylvania-based				corrosion and provide reliability of service. Of
ATI Allegheny Ludlum and Finland's Outokumpu.				course, there will be substitution in the face of
Each offers austenitic steels with chromium and				future supply shortfalls. In some instances, there
nickel composition of between 20 and 25 percent				are reports the Russians have substituted
for each alloy and a range of 6.2 to 7.5 percent				vanadium for molybdenum in some of their oil and
molybdenum.				gas pipelines to conserve on moly consumption.
In a paper presented by Jan Olsson of Avesta				ATI Allegheny Ludlum has argued for the
Sheffield (before the company was acquired by				substitution of two-percent manganese for every
Outokumpu), he highlighted the results of tests				percent of nickel, but in the lower grade austenitic
performed on the new super-austenitic stainless				groups which do not demand the corrosion
steel, 654 SMO(R). Metals comprising this brand				resistance of energy projects.
include 25-percent chromium, 22-percent nickel				While reviewing the anticipated new projects from
and 7.5-percent molybdenum. To increase pitting				the molybdenum mining sector, we foresee the
resistance, the manufacturers added up to				high probability of supply inadequacy. Aside from
0.5-percent nitrogen and three-percent				China Moly's Sandaozhuang molybdenum mine,
manganese (for make the nitrogen more soluble).				which the company hopes could produce 28,000
As with all pioneering developments - and				tonnes of molybdenum concentrate this year and
remember that R & D breakthroughs have taken				perhaps grow by another 17 percent the following
place over a two-decade-plus period,				year, there is a paucity of new molybdenum
manufacturers have re-designed their metallurgical				projects coming fully online before 2009.
composition to find the most encouraging				Based upon China's voracious appetite for
percentages of nickel, chromium, molybdenum				molybdenum - one research firm estimated
and nitrogen. The earlier stainless steels relied on				compounded annual growth rate over the
higher nickel content and lesser percentages of				previous five years at 17 percent, whatever
chromium and molybdenum.				excess moly production comes from China Moly's
At first, conventional austenitic grades, such as				mining efforts could very well be domestically
316L, or high chromium-ferritic grades, were				consumed.
utilized. Pitting struck down widespread use of the				Future North American molybdenum producers
316L series and was replaced by higher alloy				may need to ramp up their projects to meet the
steels. For example, others, such as the 254				growing demand. During 2006, demand grew
SMO(R) stainless steel, began aggressively				above the historical norm of four percent; most
replacing the copper alloy tubes and in some				of the consumption came from China. This is
cases the 316L series. The 254 is comprised of				unlikely to stagnate or decrease, and could
20-percent chromium, 18-percent nickel,				interfere with North American and European
6.2-percent molybdenum and 0.20-percent				consumption of molybdenum.
nitrogen. It has also offered a high level of				Only one company is scheduled to commence
corrosion resistance at desalination plants without				molybdenum mining in 2007, Roca Mines. Because
becoming cost-prohibitive.				the company is limited to a small-mining permit,
The most significant breakthrough came after				anticipated production could not exceed three
various stainless steels were tested at				million pounds. By late 2008, or early 2009,
Scandinavian coastal reactors. In the Avesta				Adanac Molybdenum hopes to commence its
paper, the failures of each lesser austenitic grade				start-up efforts to reach eight-figure moly
were checked off. Significant deficiencies included				production. Later, Blue Pearl Mining hopes to
insufficient stress corrosion cracking resistance				commence high-grade molybdenum mining at the
and resistance to natural seawater. Even titanium				Davidson deposit in British Columbia. Around this
tubing was used as an interim measure because it				time, the Climax molybdenum mine could re-open
increased total heat transfer by 17 percent, but				and begin production in Colorado. Moly Mines hopes
the metal failed to stand up to high velocity				to begin production at the company's Spinifex
steam and suffered 'water droplet erosion.'				project. Possibly, before the decade ends, Idaho
According to the study, "The only alloy fully				General might commence operations in Nevada.
resistant to all test conditions was 654 SMO(R)."				Perhaps before those 48 nuclear reactors come
The results at nuclear power plants in Finland and				online, US Energy's Mt. Emmons deposit may be
Sweden, along the Baltic Sea, were astonishing!				mined in Colorado.
Four important conclusions about this super alloy				Many of these projects are subject to
were reached after the testing.				environmental permitting and/or financing, putting
Â· Its corrosion resistance could cope with the				any material amount of forecasted supply in
hostile environments existing inside condenser				jeopardy. And this comes at a time when some
tubes of desalination plants and power plants.				experts believe byproduct molybdenum
Â· Its corrosion resistance was good enough				production at copper mines could be constrained.
to cop with many other hostile brine and				There are many conditional requirements which
seawater environments.				do not necessarily guarantee a reliable supply
Â· Its erosion resistance was advantageous				from the new breed of primary moly producers.
where it was exposed to high velocity streams.				We have witnessed comparable obstacles in the
Â· There was no concern about its heat				uranium sector, which has since been
transfer characteristics.				accompanied by a hyperbolic price rally in this
Nuclear Consumption of Molybdenum				metal.
About 48 nuclear reactors are reportedly				There could come a point in the molybdenum
scheduled for construction by 2013. It may be				sector where the silvery white metal could mimic
possible that up to 100 could be constructed by				such a breakout scenario. Nearly three years ago,
2020, depending upon political and financial climates.				featured a forecast of US$100/pound uranium. No
The largest number proceeding through the				one believed that prediction at the time. On
proposed, planned or construction phases will be				Friday, TradeTech announced a spot price of
located along coastal areas to service the most				US$113/pound.
populated areas. The greatest numbers of new				COPYRIGHTÂ© 2007 by StockInterview, Inc.
constructions are expected from China, India,				ALL RIGHTS RESERVED.
Japan, Russia, South Korea and Japan (and

Study Committee

Both Molybdenum And Uranium Vital For Nuclear Reactors