China has been hawking enrichment in the US and Asia lately, in what is apparently part of a long-term strategy to become a major competitor in the global enrichment market. The question on its competitors' minds is this: where is this enriched uranium product (EUP) coming from?

In the US, Chinese sellers approached a utility about a year ago offering 100,000-200,000 SWU for four years, but the two sides couldn't agree on a price. Now, Cameco is said to be marketing Chinese EUP to US utilities. In Asia, China is said to be selling long-term enrichment contracts. One source said China has already inked a 10-year supply deal with Korea.

"I think it's a way for them it get information and experience," a market source said of the sales.

They're starting slow, market sources say, selling small quantities. But their long-term strategy is much grander: they see a future in which large amounts of Kazakh and Australian yellowcake flow through Chinese conversion and enrichment plants, on the way to markets in Asia, North America and elsewhere. Few doubt that China can ultimately achieve this; the real question is how fast it is moving toward its goal.

David Fuller's view Since nuclear is the only known source of power capable of remotely rivalling coal, natural gas and increasingly expensive oil production over the next decade or two, it is hardly surprising that China is intent on positioning itself as a major player in this industry.

From an investor's perspective, could uranium mining shares be more interesting and promising than gold mines over the next few years? They are not mutually exclusive, of course, but I suspect so. Gold miners have had a very good run. In contrast, uranium miners experienced a savage bear market following their burst bubble in 2007. However prices have begun to stir, as I have mentioned recently. (See also 'My personal portfolio' below.)