business and costs « nuclear-news

Falling demand, falling prices, make uranium a very dubious investment

Adding to the miners’ woes, uranium prices continue to fall, from US$73 a pound in March 2011, to around US$43 currently. That’s lower than the cash cost of production at Paladin’s Kayelekera mine in Malawi, giving the miner a decent sized headache.

Nuclear Fallout Hurts Uranium Miners , 9 News, by Mike King, The Motley Fool, October 19, 2012 The world continues to feel the impact of the Fukushima nuclear disaster. The disaster in Japan in 2011 has left 48 of Japan’s nuclear reactors sitting idle, awaiting government approval to resume operations, with just 2 restarted. In mid-September, the Japanese government approved a new energy plan which included reducing the nation’s reliance on nuclear energy substantially.
Following the Fukushima accident, Germany immediately shut 8 of its reactors, and plans to close its remaining 9 reactors by 2022.

The impact is being felt by uranium miners globally.

Paladin Energy Ltd (ASX: PDN) recently stated that annual demand for uranium has fallen, as the future of nuclear energy was cast into doubt. The world’s largest uranium producer, Canada’s Cameco, has also forecast lower sales and highlighted doubts about the take-up of nuclear power in future. Continue reading →

October 20, 2012 Posted by Christina Macpherson | 2 WORLD, business and costs | Leave a comment

Power line linked to nuclear plant upgrade would cost at least $193 million Journal Sentinel 18 Oct 12 A high-voltage power line in Sheboygan, Manitowoc and possibly Calumet counties will cost $193 million to $262 million, depending on the route selected.

American Transmission Co. this week filed an application with state regulators to build the line, which is needed to help accommodate the increased power output from the Point Beach Nuclear Plant…. http://www.jsonline.com/blogs/business/174789691.html

October 19, 2012 Posted by Christina Macpherson | business and costs, USA | Leave a comment

Future of nuclear power in Europe – a murky outlook

CEE nuclear power: deeper in doubt Ft.com October 16, 2012 by Jan Cienski Nuclear power has long held the possibility of energy independence for central Europe, freeing it from its heavy reliance on imports of Russian natural gas. But a series of political and corporate decision across the region in the last few days leaves the future of atomic power murkier than ever.
Starting in the north, Lithuania’s parliamentary elections and a parallel non-binding referendum on nuclear power appear to have thrown a spanner into the country’s hopes of weaning itself off Russian gas by building a regional nuclear power station. Two-thirds of voters rejected the power plant, putting its future in doubt.
The country’s previous, Soviet-era nuclear power plant was shut down in 2009 for safety reasons, one of the conditions for Lithuania’s entry to the EU in 2004.
….. Further doubts were sown on Friday when Donald Tusk, Poland’s premier, relaunched his troubled administration with a speech to parliament in which he spelled out his government’s economic priorities. He detailed 60bn zlotys ($19bn) in investment plans for
energy, but was conspicuously silent on nuclear….. http://blogs.ft.com/beyond-brics/2012/10/16/nuclear-power-in-cee-deeper-in-doubt/#axzz29a1N2hLA

October 17, 2012 Posted by Christina Macpherson | business and costs, EUROPE | Leave a comment

Russia joins the feeding frenzy to sell nukes to UK

Russia eyes stake in UK nuclear plants http://www.telegraph.co.uk/finance/newsbysector/energy/9594476/Russia-eyes-stake-in-UK-nuclear-plants.html By Emily Gosden 09 Oct 2012 Russia is seeking a stake in the UK’s nuclear new-build programme, in a boost for the Government’s energy plans. Alexey Kalinin, of Russian
state nuclear corporation Rosatom, will today say that it is willing to invest in the UK’s reactor programme. Continue reading →

October 10, 2012 Posted by Christina Macpherson | marketing, Russia | Leave a comment

An irreversible ripoff of the British public – new nuclear reactors

the numbers now being talked about in terms of price guarantees for the energy giants are astronomical.

who will wave a flag and scream ‘rip off’ before the Government signs an irrevocable deal.

Nuclear deal is likely to leave a toxic legacy This Is Money, By LISA BUCKINGHAM, 6 October 2012 “…….Now, though, comes a set of negotiations that have the ability to swipe tens of billions out of the public purse and into private coffers. Chinese investors may be about to pick up part of the tab for building some of our new nuclear power stations, but this is not out of the goodness of their hearts.
French energy group EDF, in partnership with British Gas owner Centrica, has been embroiled in long negotiations with the Government over what will effectively be a subsidy to help them cover the huge building costs of these new generators. Continue reading →

October 8, 2012 Posted by Christina Macpherson | business and costs, UK | 1 Comment

Series of company pullbacks puncture UK’s nuclear power dream

There is now a question mark over who will ultimately foot the bill for what are expected to be massively expensive infrastructure projects

How lights dimmed on UK’s nuclear vision, FT.com By Guy Chazan, October 5, 2012 In 2009, Ed Miliband, the then energy secretary, unveiled plans for the most ambitious expansion of nuclear power in Europe.
It was a bold vision. Britain would build up to 12 new reactors, he said, on 10 sites stretching from Somerset to Cumbria. By the late 2020s about 30 per cent of its electricity would come from nuclear power – up from 18 per cent now

That prediction is now looking wildly optimistic

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“The race for new nuclear in this country is at serious risk of unravelling,” says Tony Lodge, a research fellow at the Centre for Policy Studies think-tank.
Nuclear is widely seen as one of the great panaceas for Britain’s looming energy problems….

But recent events have conspired to puncture Britain’s nuclear dream. Continue reading →

October 6, 2012 Posted by Christina Macpherson | business and costs, politics, UK | Leave a comment

AREVA loses in the scramble to sell nukes to Czech Republic

UPDATE 2-CEZ dumps Areva from Temelin nuclear tender ReutersOct 5, 2012
* CEZ says Areva fails to meet requirements
* Disqualification leaves U.S., Russian firms in tender (Adds quotes, shares, details)
By Jason Hovet and Jan Korselt PRAGUE, Oct 5 (Reuters) – Czech power group CEZ threw out Areva’s bid for a multibillion-dollar contract to expand the Temelin nuclear power plant, leaving U.S. and Russian firms to contest the country’s biggest-ever energy deal. Continue reading →

October 5, 2012 Posted by Christina Macpherson | business and costs, EUROPE | Leave a comment

Gloom and doom for uranium market getting worse

Miners pressured as uncertainty sours uranium market Reuters Oct 5, 2012

* Uranium spot price hits new 2-year low, miners’ shares sag

* Idled Japan reactors weigh as politics unclear

* Uranium price seen stagnant to lower over next months By Julie Gordon…

TORONTO, Oct 5 – Eighteen months after the Fukushima nuclear meltdown, the spot price for uranium hit a two-year low this week, putting the squeeze on the already depressed shares of uranium miners.

With a looming election keeping Japan from making a decision on how much, if any, of its nuclear reactor fleet it will keep, and slowing growth inChina weighing on the broader resource sector, it will likely be months before uranium prices start moving back toward pre-Fukushima levels.

“In the near term, the price of uranium is going to go sideways to down,” said Raymond Goldie, a senior mining analyst at Salman Partners in Toronto, adding that the spot price is not likely to start recovering until March or April 2013.

That is bad news for producers Cameco Corp, Uranium One Inc and Paladin Energy Inc, which have watched their shares plummet since a massive earthquake and tsunami struck Japan in March 2011, crippling the Fukushima-Daiichi atomic power plant.

Cameco, the world’s largest publicly listed uranium producer, has lost more than 48 percent of its market value in the aftermath of the worst nuclear disaster since Chernobyl. Uranium One is down 62 percent, while Paladin has fallen 72 percent. Continue reading →

October 5, 2012 Posted by Christina Macpherson | 2 WORLD, business and costs, Uranium | Leave a comment

Areva and China Guangdong Nuclear Power Group pull out of UK’s nuclear power project

British nuclear plans suffer blow as Chinese investors pull out Two new nuclear projects in the UK suffer as firms in running to buy a stake pull out Terry Macalister and Adam Vaughan The Guardian, 3 October 2012 The government’s nuclear energy plans were in trouble on Wednesday with Chinese investors withdrawing interest in two projects and local councils postponing a decision on hosting atomic waste storage.

Areva, the French nuclear engineering group, confirmed that it had pulled out of the running to buy a stake in Horizon Nuclear Power, the enterprise planning to construct new reactors at Wylfa in Wales and Oldbury in Gloucestershire. Areva said its partner, the state-owned China Guangdong Nuclear Power Group (CGNPC), had also shelved its
bid….

This is a blow for the government because Areva is the most advanced with getting regulatory approval for the design of its European Pressurised Reactor (EPR) while the Chinese are considered to have the deepest pockets. Continue reading →

October 4, 2012 Posted by Christina Macpherson | business and costs, UK | Leave a comment

New nuclear reactor now being built North of Tokyo

Work resumes on Japanese nuclear reactor http://www.abc.net.au/news/2012-10-02/japan-resumes-reactor-work/4290390 By North Asia correspondent Mark Willacy,2 Oct 12, A Japanese power firm has resumed construction of an atomic reactor, despite government plans to phase out nuclear power in the wake of the Fukushima disaster.

The reactor – 650 kilometres north of Tokyo – is being built by the J-Power company which had planned to have it operational in two years’ time. The company says it has now resumed construction of the reactor which was halted work after the Fukushima meltdowns. Continue reading →

October 3, 2012 Posted by Christina Macpherson | business and costs, Japan | Leave a comment

Fukushima compensation payments 1.24 trillion yen, and rising

TEPCO must compensate nuclear accident victims quickly The Yomiuri Shimbun, 2 Oct 12
The government should further enhance its system to resolve disputes over compensation for damage caused by the crisis at the Fukushima No. 1 nuclear power plant so people suffering from the nuclear accident can be helped appropriately and quickly.

By late September, 940,000 compensation claims had been made against Tokyo Electric Power Co., the operator of the nuclear plant, for damage caused by the crisis. The claimants and TEPCO have reached agreements in 860,000 cases. The total compensation has already reached 1.24 trillion yen and will increase further. This shows the seriousness of the accident, which has forced 160,000 local residents to evacuate.

Under a compensation scheme for the damage caused by the crisis, the government first pays evacuees the money and later requires TEPCO to repay it. Compensation is calculated based on criteria set by the government’s Committee for Dispute Resolution for Compensating Damages from the Nuclear Power Plant Incident.

The criteria require TEPCO to pay compensation for such expenses as evacuation transportation fees and damage to farmers and other people who lost their businesses due to the crisis.

The agreement ratio has been high in initial compensation negotiations, but many crisis victims are still dissatisfied with the amount of reparations…… http://www.yomiuri.co.jp/dy/editorial/T121001002720.htm

October 3, 2012 Posted by Christina Macpherson | business and costs, Fukushima 2012, Japan | Leave a comment

USA’s nuclear industry moribund, so it lobbies for easier export rules

Nuclear Firms Seek Eased Export Rules as U.S. Demand Wanes Bloomberg News, By Brian Wingfield October 01, 2012 The U.S. nuclear-power industry is seeking to ease export restrictions so it can sell equipment and technology to nations including China and Russia as domestic demand wanes for reactors.

Regulations unchanged since the end of the Cold War impede U.S. companies in gaining export licenses, putting suppliers at a global disadvantage, according to a report released today by the Nuclear Energy Institute, a Washington-based group whose members include
Exelon Corp. (EXC) and Southern Co. (SO)…..
The Nuclear Regulatory Commission this year issued its first reactor-construction licenses in more than three decades, while U.S. companies struggle to arrange financing for additional units.

A glut of natural gas has lowered prices for the fuel, discouraging investment in more expensive sources including nuclear power.

Southern’s reactor project in Georgia is awaiting final approval 2 1/2 years after winning a conditional $8.3 billion Energy Department loan guarantee. The NRC in August imposed a two-year freeze on final decisions for power-plant licenses in response to a court decision
requiring a reassessment of risks associated with storing nuclear waste……..

October 3, 2012 Posted by Christina Macpherson | business and costs, politics | Leave a comment

How multinational uranium companies diddled Tanzania out of its tax revenue

the transfer of Mantra Resources Limited to ARMZ enables its former shareholders to pocket $1.04 billion without paying capital gains to the Tanzanian government…. Mantra Resources Limited of Australia was supposed to have paid capital gains tax to Tanzania.

Sh320bn loss looming over uranium project , 29 September 2012 By Felix Lazaro, The Citizen Dar es Salaam. Tanzania risks losing about Sh320 billion in mining taxes because of weak legal checks, particularly when it comes to uranium.

Local mining experts said yesterday that the country must go back to the drawing board and put in place a watertight policy and regulations before it allows uranium mining.Earnings from the mineral are believed to have the potential to turn around the lives of thousands of poor Tanzanians.

The chief concern right now, though, is that some subsidiaries of multinational firms licensed to explore uranium in Tanzania are capitalising on a weak legal and institutional framework to transfer ownership to affiliated companies. Continue reading →

September 29, 2012 Posted by Christina Macpherson | AFRICA, business and costs | Leave a comment

Rebound in uranium prices just not happening

Cameco hit with downgrade as hopes for uranium rebound fade
http://www.theglobeandmail.com/globe-investor/markets/market-blog/cameco-downgraded-amid-relentless-decline-in-uranium-price/article4570023/ DARCY KEITH The Globe and Mail , Sep. 26 2012, The rebound in the uranium market some speculated would surely follow the big-time drubbing the sector experienced in the aftermath of the Japanese Fukushima nuclear disaster isn’t exactly materializing. Continue reading →

September 28, 2012 Posted by Christina Macpherson | 2 WORLD, business and costs, Uranium | 1 Comment

Uranium price slump for the long term

Short-term dip in uranium prices now a long-term slump Peter Koven | Sep 26, 2012“……..Eighteen months after the incident, uranium prices continue to hit new lows. The spot price sunk US50¢ to US$46.50 a pound this week, which is the lowest level since 2010, according to Ux Consulting. Investors briefly drove the spot price above US$135 in 2007.

The long-term price has also declined, though it is higher at US$60, reflecting the fact buyers will pay more for material delivered mid-decade or later.

TD Securities analyst Greg Barnes noted that September is usually buying season in the uranium market, so the current weakness is not a good sign.

Although sales volumes in the spot market have been very weak, there is more than enough uranium around to supply utilities, so any investing bet on the commodity is really a bet that nuclear power demand will substantially grow in the years to come….

.. questions about the future of nuclear continue to linger. Japan recently pushed reactor re-starts further into the future, while maintaining plans to phase out all nuclear power by the 2030s. And French President François Hollande reaffirmed his campaign promise to reduce the share of nuclear power in France’s energy mix to 50% from 75% currently.

“With two of the world’s most important nuclear markets questioning the longer-term outlook for nuclear power, we expect [the] uranium price to be in for another 12 months of lacklustre performance,” Mr. Barnes wrote in a note.

That view is widely shared by investors .

September 28, 2012 Posted by Christina Macpherson | 2 WORLD, business and costs, Uranium | Leave a comment

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