Jeff Lagerquist reports that uranium stocks are glowing on news of a Japanese court decision to remove one of the last major hurdles in the way of switching on Kyushu Electric Power Co. Sendai nuclear power plant.
A Kagoshima District Court rejected a petition filed by a group of residents near the Sendai plant in the city of Satsumasendai to halt the restart of two reactors following a go-ahead from safety regulators.
All of Japanese 48 nuclear reactors were taken offline following the disaster at the Fukushima plant in 2011 caused by a massive earthquake and tsunami. Roughly 30 per cent of the Japanese energy mix was nuclear-generated before the disaster.
The recent court decision follows a similar case where a community-based petition led to an injunction blocking the restart of the Takahama reactors last week. Rob Chang says a second negative ruling would have cast doubt on the Japanese intention to resume nuclear-energy production.
Research continues to hold the view that a violent upward move in the price of uranium is inevitable based on an unavoidable supply deficit occurring in 2020 where uranium supply from all sources does not meet increased demand, said Chang in a note to investors.
Prime Minister Shinzo Abe has backed efforts to bring reactors back online, arguing that the energy shortfall stemming from the ongoing shutdown is a danger to the economy, forcing Japan to import expensive fossil fuels to compensate. Chang estimates that Japan is spending U.S. 40 billion dollars annually to offset the electricity lost as reactors sit idle.
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