Uranium Regains Its Glow

Uranium (Nuclear Minerals) / Nuclear Power - Economics, Design, & Industry

Date posted: 01/05/15

Thomas Streater reports that uranium prices are rising as Japan restarts power stations and China seeks to cut pollution. Some analysts see 20 per cent upside for uranium prices in 2015. It has been a year to forget for energy prices. Whether it has been oil or coal, the combination of weaker demand and too much fresh supply has sent prices tumbling to multi-year lows. But amid the headlines about the savaging of energy prices, little attention has been paid to the rebound in prices for uranium. Spot prices for the nuclear fuel ingredient have rallied from a low of 28 US dollars a pound in May to 44 dollars a pound in mid-November. Prices have tumbled a long way from their highs around 70 dollars a pound in 2011 as the shut-down of Japan nuclear power stations after the Fukushima Daiichi incident caused by the tsunami ended near-term demand for the fuel.\n\nHowever, the commitment by the Japanese Prime Minister Shinzo Abe to restart the nuclear reactors has stoked hopes uranium prices may be set for further gains. With Abe re-elected in last month of the snap election, the Nuclear Regulation Authority is moving ahead with approvals for nuclear power plants to restart generating electricity. The authority has now cleared four reactors - Kansai Electric, Takahama number three and four plants and Kyushu Electric, and Sendai number one and two plants.\n\nWhile the Australian big two diversified miners BHP Billiton and Rio Tinto produce uranium, revenues from that segment are small relative to other commodities like iron ore and coal. However, BHP Billiton is considering an expansion of its Olympic Dam mine in the state of South Australia, a move that could transform the operation into the second biggest copper mine in the world and possibly the biggest uranium mine on the planet.