Sidney, Australia-based CWH Resources, formerly the China West International Holdings Limited, has agreed to buy 60 percent of the share capital of Shanghai KeChao Industrial Limited, a supplier of nuclear grade boric acid.
Boric acid is used in reactor coolant and as a soluble reactive control agent. A boron isotope, B-10, in the form of boric acid, is used to control the speed of fission in reactors (attribute: Dynabond Powertech Service).
KeChao is a China Nuclear Group supplier, with a capacity of 2,000 tons of nuclear grade boric acid, which represents small share in the global market. But that is expected to grow.
Chinese nuclear power plants purchase 32,000 tons of boric acid per year. The industry is expected to create a demand for 170,000 tons of boric acid by 2030, Proactive Investors reported.
The market growth rate in China is predicted to be 30 percent per year, as more nuclear power plant builds in the country increase demand.
KeChao is likely to receive orders of 16,000 tons per year, based on market projections.