Thursday 27th October 2016

Resource Clips

Looking at uranium

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Rule told the Daily Crux that Japan can’t continue to pay three times the cost for LNG-generated energy. The German government’s newfound opposition to nuclear energy, he added, is “disingenuous.” The country will simply import electricity from largely nuclear sources in France and the Netherlands, he argued.

Athabasca Basin deposit grades are 10 to 20 times better than any other deposits around the world.—Ross McElroy, Fission Energy

House Mountain Partners founder Chris Berry watches a number of energy minerals but says uranium is the one with “the brightest future.” He explained this further in the March 7, 2013, edition of Morning Notes.

There’s the anticipated 24-million-pound loss of the megatons-to-megawatts program. As for Japan, it now uses only two of its 52 reactors. Possibly 30 more will resume operation within two to four years, calling for another 15 million pounds. Big miners like Cameco, AREVA Resources, BHP Billiton and Paladin Energy TSX:PDN say expanded production would require prices in the $70-to-$80 range. According to Berry, that opens opportunities for near-term producers. Finally, the emerging world’s population growth and rising expectations require more and more electricity. There are approximately 436 reactors now in use, about 62 under construction and 150 being planned.

Rule, however, cautioned that there is risk in the uranium market, primarily from a serious accident which would delay market recovery.

But he also pointed out that consumers can afford higher uranium prices, which would make more mines viable. He said uranium can account for as little as 3% of the cost of nuclear-generated electricity.

Price vagaries would normally affect low-grade deposits the most. “Athabasca Basin deposit grades are 10 to 20 times better than any other deposits around the world,” Fission Energy TSXV:FIS president/COO/director Ross McElroy told ResourceClips.

While many people in developed countries look on nuclear energy with fear, it has the support of some prominent environmentalists including Greenpeace co-founder Patrick Moore. In a speech before the U.S. Senate Committee on Energy and Natural Resources, he called nuclear energy “the only non-greenhouse gas-emitting power source that can effectively replace fossil fuels and satisfy global demand.” Speaking to ResourceClips he said, “If you look at all the other energy technologies that we employ, nuclear ends up being about the safest.” He added that nuclear-generated electricity can be installed almost anywhere, unlike hydro, solar or wind energy.

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