nuclear-news

Hopes of uranium market revival likely to be dashed

Rally in Uranium Prices Is Unlikely to Last, WSJ, 14 Sep 14  Gains Fueled by Ukraine Crisis, Mine Unrest Don’t Offset Oversupply SYDNEY—A multiweek rally in uranium prices fanned by the Ukraine conflict and labor unrest at a large mine in Canada looks unlikely to continue for long as the reality of oversupply and lackluster demand sinks in among buyers of the nuclear fuel.

Industry analysts and some uranium producers believe that even as supplies fall, a substantial increase in demand is needed to drive prices up to levels that would make new investments worthwhile, when many operations are running at a loss……..

Demand for the fuel hasn’t recovered since the disaster at Japan’s Fukushima Daiichi nuclear-power plant in 2011, which sparked nuclear-plant closures across the country and tarnished uranium’s image globally…….

state governments in resource-rich Australia have been encouraging the growth of the nation’s uranium industry. A decadeslong ban on uranium production in Queensland was lifted in July, opening the door to new applications to build mines in the state. The government of New South Wales this month said it would invite six companies to apply for exploration licenses.

Still, there is expected to be little investment in new projects until the market stages a more substantial comeback. Cameco said it would need to see much higher uranium prices before it started construction of its proposed Kintyre uranium mine in Western Australia.

“The nuclear industry is still in the midst of upheaval,” said Jonathan Hinze, senior vice president at nuclear-research firm Ux Consulting Co. …http://online.wsj.com/articles/rally-in-uranium-prices-is-unlikely-to-last-1410726782

September 15, 2014 - Posted by Christina Macpherson | 2 WORLD, business and costs