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Concern over Russian ownership brings fall in uranium share price

“alarmed industry observers worried that the Vancouver-based company might end up serving the Kremlin’s strategic interests.”
The spot price of uranium reacted to this news by falling in price.

Financing uranium mining raises concern, Star Tribune, Hildred Shelton, July 7, 2010 The hearing on uranium mining conducted in Chatham on June 22 by the Virginia Coal and Energy Commission Subcommittee has received extensive comment………………..that brings up a current development in financing uranium mining which is causing international commentary…that “world of capital.”

Uranium One Inc., the second largest uranium mining company in Canada, is reportedly being taken over by ARMZ, a division of the Russian State Corporation Rosatom (Russian State Atomic Energy Corporation).

For 51 percent of the stock of Uranium One, ARMZ, Rosatom, will pay Uranium One $610 million U. S. dollars and the controlling (or 50 per cent) interest in two Kazakhstan uranium mines.

The CEO of Uranium One, Jean Nortier, referred to this as a “shift to Russian-style Capitalism.”

If this Uranium One/Rosatom deal goes to completion, as reported, then a uranium project, Honeymoon Well, in South Australia scheduled to be in production by the end of 2010 will also be under the control of the Russian Government. Uranium One owns 51 per cent of Honeymoon Well…………The London newspaper, Globe and Mail, on June 27 stated it best in saying, “The prospect of Kremlin control of the Canadian company left many investors worried that Uranium One would be pressured to serve Russian strategic interests that do not necessarily deliver the best returns…” and “alarmed industry observers worried that the Vancouver-based company might end up serving the Kremlin’s strategic interests.”

The spot price of uranium reacted to this news by falling in price.

WWW.WPCVA.COM

July 8, 2010 - Posted by Christina Macpherson | business and costs, USA | antinuclear, nuclear, nuclear costs, uranium