U3O8 Uranium.

[stolwyk]

Uranium may heat up on Indian demand

Gayatri Ramanathan / Mumbai November 25, 2006



The opening up of the Indian nuclear sector may push up the prices of uranium in the global spot markets.

India will soon be able to fulfil its nuclear fuel requirement in the spot markets with the the US Senate recently approving the Indo-US Civilian Nuclear Cooperation Treaty.

India, with 15 nuclear reactors, currently mines around 230 mt of uranium. Nuclear power plants in the country run at a plant load factor of 65 per cent against an average of 85 per cent worldwide.

With the free market in nuclear fuels becoming accessible, the country is poised to add a demand for 1,300 mt of uranium to a market already facing a tight supply situation, according to a study by the World Nuclear Association (WNA).

“The market expectations are that additional consumption by the Indians, combined with the planned capacity addition by China and South Korea, could push the spot prices of uranium yellow cake up to $100 a pound from the present $62.50 a pound over the next couple of years. But, we expect the prices to settle down by 2015, when the capacity additions in uranium mining are also in place,” said Craig Lindsay, president of Magnum Uranium, a Canadian uranium mining company, which is eyeing the Indian market for exports.

He added that initially the Indian demand would be much smaller than the figure projected by the WNA.

Prices of uranium in the spot markets have been rising over the past two years with the resurgence of the nuclear power industry in the US and Europe on the back of rising crude oil prices. From less than $10 a pound, prices are currently ruling at $62.50 a pound.

Sources in the Indian nuclear establishment, however, said the price rise will not affect the fuel cost for Indian power companies. “It will only go up by around 5 to 6 per cent,” said a top official of the Nuclear Power Corporation.

Lindsay pointed that by 2015, the number of reactors worldwide is expected to go up to 504 from the present 440. While the global requirement of uranium is around 180 mt, only 105 mt are mined, with the rest coming from the dismantled nuclear warheads of the erstwhile USSR and spent fuel of the existing reactors.

Of 20,000 warheads of the erstwhile USSR that were to be dismantled, 10,000 have already been dismantled and the fuel is sent to the US under a treaty between the US and Russia. Nearly 40 per cent of the US consumption of nuclear fuel comes from this source.

Worldwide investments in uranium exploration and mining are expected to be in the range of $300-500 million. Of this, Canada is investing around $150 million in mining the ore from its deposits at Athabasca basin.

Canada is estimated to have 9 per cent of the world reserves of uranium, while Australia has the largest reserves at 24 per cent, followed by Kazakhstan at 17 per cent.

http://www.business-standard.com/com...Left=0&chkFlg=

[stolwyk]

U=$64.00

[CAM]

in todays herald.....

Aussie MPs call for lifting restrictions on uranium

Tuesday December 5, 2006
By Rob Taylor


Australia, which holds 40 per cent of the world's recoverable uranium, should drop restrictions on uranium mining, say federal lawmakers.

They insisted yesterday that fears about the safety of the nuclear fuel were misplaced.

MPs from both major political parties, including Labor politicians who had previously opposed such a move, said Australia should drop barriers to "greenhouse friendly" uranium fuel.

"All members are agreed that present restrictions on uranium exploration and mining are illogical, inconsistent and anti-competitive," industry and resources committee chairman Geoff Prosser said in a statement.

The committee called for the lifting of Australia's three-mine limit, warning that billions of dollars worth of exports to lucrative new markets such as India and China were at risk.

Australia signed a uranium export deal with China in April after receiving non-proliferation guarantees, but has so far refused to supply India.

"As a matter of justice Australia should not deny countries that wish to use nuclear power in a responsible manner," Prosser said.

Despite its huge reserves, Australia has only 23 per cent of global uranium production, partly because of mining bans associated with fears over nuclear waste safety and proliferation.

Conservative Prime Minister John Howard in June opened a debate on nuclear energy and uranium mining, setting up an inquiry to find out if a domestic nuclear industry was viable.

The inquiry also looked into whether nuclear power would be a clean alternative to the coal-fired power generation on which Australia relies, concluding that a domestic nuclear power industry could be a reality in Australia within 15 years.

The new report - the third in the past month - said Australian uranium reserves could displace 40 billion tonnes of greenhouse-causing carbon dioxide if used to replace coal-fired power generation.

[stolwyk]

U price: up $1 to $65.00:

http://www.uranium.info/

When U was $42 in may 2006, I predicted $68 in May 2007 (H/C)

It seems we may get that at end of Dec?


Gerry

[stolwyk]

December 10, 2006
By Julie Ickes, Editor

Uranium Price Indicator Climbs to $65/pound
Sellers Expecting Price Bump Next Week

Aggressive bidding for spot uranium may soon be in the cards. Uranium buyers and sellers anticipate a potentially stronger upward move in the spot uranium price after a U.S. producer offers material for sale this coming week.

Subsequently, the official TradeTech U3O8 Weekly Spot Price Indicator rose another dollar to $65/pound for the week ending December 8, 2006. According to the consulting firm’s weekly Nuclear Market Review (NMR), one utility’s recent uranium purchase fell more than 200,000 pounds shy of material the utility hoped to buy.

Sellers have continued the ‘wait and see’ attitude, established after the late October announcement of flooding at Cameco’s Cigar Lake uranium project. According to NMR editor Treva Klingbiel, “A US producer plans to enter the market next week to auction as much as 200 thousand pounds U3O8 for delivery later this month.” She pointed out “bidding is expected to be aggressive.”

NMR also reported, “Sellers have withdrawn from the market or are making market-related offers in anticipation of a price bump following the auction.” Ten buyers remain active in the market hoping to purchase more than five million pounds of U3O8 equivalent. Nineteen utilities are actively seeking nearly 43 million pounds for delivery beginning in 2007.

Similar tight conditions were reported in the uranium conversion and enrichment markets. Buyers appear unable to obtain the entire requests, settling instead for partial delivery. Up to nine U.S. and non-U.S. utilities are said to be evaluating off-market purchases to meet long-term enrichment commitments.

TradeTech posts the official weekly spot price indicator on the company’s website: http://www.uranium.info


Editor’s Note:
Please visit StockInterview’s disclaimer page for full disclosure, forward looking statements, important links and cautions.
Please email your feedback on this article: editor@stockinterview.com


http://www.stockinterview.com/News/1...rice-bump.html

[Skol]

According to an article I have here the US Dept of Energy is proposing to sell 2500 tonnes of uranium per annum. The DoE controls 61 million tonnes of uranium, most from dismantled weapons.

[stolwyk]

Some reference, please.

Gerry

[Skol]

The Weekend Australian, December 9-10, page 9 in Resources Section, also article on Thorium, same page.
No problem to put whole article on this thread if you wish, let me know.

[stolwyk]

If you like.

Thanks,

Gerry

[Skol]

The Weekend Australian Dec 9/10

URANIUM PRICE THREAT
Fears are growing that uranium prices could be hit by the release of part of the US stockpiles. Dow Jones said uranium producers were concerned by a proposal by the DoE to sell 2500 tonnes a year into the market. The DoE controls 61 million tonnes of uranium, most being sourced from the dismantling of nuclear weapons after the end of the Cold War.
Uranium Producers of America wants the Government to sell the uranium through long-term contracts to avoid driving down spot prices.

Copiled by Robin Bromby
brombyr@the australian.com.au