nuclear-news

Another blow to AREVA in poor outlook for uranium mine

UraMin deal was a wager on new power stations Financial Times, By David Blackwell, 14 Dec11“…..Areva’s purchase of UraMin was a long-term bet that power stations would be built around the world to meet concerns about energy security and climate change – as new reactors typically require a lot more uranium than those that have been in operation for some time.
Even before this year’s Fukushima disaster in Japan, Areva’s willingness to pay such a premium was in question as the price of unenriched “yellow-cake” uranium fell to $70 a pound, from $138 a pound around the time of the acquisition.

Since Fukushima, the price has fallen even further to about $50 a pound. Coupled with Monday’s announcement that deposits at UraMin’s mines were far smaller than expected, Areva has taken a hit – both to its balance sheet and to a mining business that accounted for 40 percent of its capital spending between 2007 and
2011….http://www.ft.com/cms/s/0/6506add8-2592-11e1-9cb0-00144feabdc0.html#axzz1gWdl0WlU

December 14, 2011 - Posted by Christina Macpherson | business and costs, Uranium