Uranium Investing

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 Today’s Discussion:

February 22, 2012

 

Although market
prices for uranium remain steady at $52, uranium miners have performed well so
far this year. Stocks in uranium related companies have gained about 20% this
year, after tumbling 50% following the Fukushima disaster. Prospects for plant
growth in China, and elsewhere, remains strong and has boosted the sector in
recent months.

China and
Canada have reportedly reached an agreement, which will allow Canadian miners
to export uranium to China, which is still one of the fastest growing markets
for nuclear power.

Meanwhile,
the Nuclear Regulatory Commission has approved the first new nuclear plant in
the US in 30 years, which will be built in Georgia. In fact, Atlanta-based
Southern Co. received approval to build two new plants in the Eastern part of
the state.

The new Tummalapelle
uranium mine in India is expected to be commissioned by April and is said to
hold one of the world’s largest reserves of uranium. Reports say the mine could
produce 1.1 million tons annually.

At least one
industry expert, Thomas Drolet, President of Drolet & Associates Energy
Services, says he sees a supply crisis in the uranium industry by about 2016.
He points out that long-standing supply is already dwindling and will be a
growing issue in the next year or so. In 2010, 118 million pounds of uranium was
mined, while global consumption was about 190 million pounds.