The Conversation (2)
Iran said it would produce the enriched uranium needed for a medical reactor in Tehran within twelve months, following closely on the heels of the announcement from the country of its commencement to load fuel into its first atomic power plant near the Gulf city of Bushehr.
By Dave Brown – Exclusive toUraniumInvestingNews.com
On Monday, Iran said it would produce the enriched uranium needed for a medical reactor in Tehran within twelve months, following closely on the heels of the announcement from the country of its commencement to load fuel into its first atomic power plant near the Gulf city of Bushehr. Russia designed and built the plant and will supply the needed fuel. In order to ease nuclear proliferation concerns, Russia will take back spent rods that could be used to make weapons grade plutonium. Iran’s nuclear chief Ali Akbar Salehi said his country so far had produced 55 pounds of uranium to a level of 20 percent purity for the Tehran reactor.
Iran has occupied the headline news in Western countries as fear that Iran is seeking to develop nuclear weapons has been an ongoing concern for a considerable time. Turkey and Brazil have worked together towards a fuel swap deal; however, the primary question is whether Tehran’s nuclear program is aimed at producing weapons. Iran maintains that it is enriching uranium only to generate electricity and isotopes for agriculture and medical treatment.
President Mahmoud Ahmadinejad said in an interview earlier this month that Iran would stop higher-grade enrichment if it is assured of atomic fuel supplies for its research reactor. He has also raised conditions for further discussions, expressing that the parties involved must first communicate a view on Israel’s alleged nuclear arsenal.
Last August, Supreme Leader Ayatollah Ali Khamenei, said that Tehran would not conduct talks with the United States unless sanctions and military threats were lifted. In February, Iran started enriching uranium to a level of 20 percent from about 3.5 percent previously, heightening fears that it was moving closer to weapons-grade levels.
Mining News
On Sunday Uranium One Inc. (TSX: UUU) announced that the Kazakh Ministry of Industry and New Technologies formally approved the purchase of JSC Atomredmetzoloto’s interests in the Akbastau and Zarechnoye uranium mines. The completed transaction is expected to close by the end of this year with part of the price involving a cash contribution of $610 million to Uranium One, of which approximately $479 million will be paid directly to shareholders as a change of control premium after closing, by way of a special dividend of $1.06 per share. The transaction remains subject to Uranium One shareholder approval, at today’s special meeting of shareholders in Vancouver, British Columbia.
Last week Bayswater Uranium Corporation (TSXV: BYU) reported that it had received approval of its Drilling Notification permit from the Wyoming Department of Environmental Quality and its Monitoring Well Permits from the Wyoming State Engineer’s Office. The company has commenced drilling and installing up to 44 baseline monitoring wells in the area of its proposed Uranium In Situ Recovery mine and plant at its Reno Creek project. Seven clusters of monitoring wells are being installed across the property to provide information on the hydrology and water quality of the production zone aquifer. Additionally, Bayswater continues to implement other elements of its baseline environmental monitoring program. The company is also involved in various projects in Canada, Africa, and Europe branching into gold, base metal and diamond interests.
Spot Prices Temporarily Stalled
TradeTech reported a slight decline of $0.25 this week to $46.25 per pound of uranium, after five consistent weeks of strong demand. The price setback could be attributed to a decrease of activity with only two transactions reported, as well as sellers who were not successful in securing business this week adjusting their offer prices downward in an effort to draw out demand as buying interest waned.
A non-US utility, seeking 300 thousand pounds of uranium, selected a supplier for 100 thousand pounds. The utility is expected to ask for new offers on the remaining 200 thousand pounds. The second transaction involved a purchase from another utility.
The price in one of these transactions was below the spot price, primarily due to the location and origin restrictions associated with the material. The other transaction was concluded near last week’s spot price.
With help from Assistant Editor Vivien Diniz