• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • WORLD EDITION
      Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • WORLD EDITION
      North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Energy Market
    Energy News
    Energy Stocks
    • Energy Market
    • Energy News
    • Energy Stocks
    uranium investing

    Japanese Court Blocks Reactor Restarts on Safety Concerns

    Investing News Network
    Apr. 16, 2015 01:55PM PST
    Energy Investing

    The uranium market was dealt a heavy hit this week when a Japanese court issued an injunction to block the restart of two reactors. Reactor restarts are a key psychological catalyst for the uranium market, and the news is expected to have a negative impact on the space.

    The U3O8 spot price has floundered a little since the start of April. Though it was sitting at $39.50 at the beginning of the month, it’s since dropped down to $39 per pound.

    Compounding that stagnancy, the uranium market was dealt a heavy hit this week when a Japanese court issued an injunction to block the restart of two reactors at Kansai Electric Power Company’s (TSE:9503) Takahama nuclear power plant. Reactor restarts are a key psychological catalyst for the uranium market, and the news is expected to have a negative impact on the space.

    Safety concerns

    Nuclear power is not looked upon favorably in all areas of Japan, and the Fukui Prefecture, where the Takahama plant is located, is one such place. It’s thus perhaps not too surprising that the Fukui District Court shelved plans to restart the two reactors.

    The court’s decision was reportedly made on the basis of safety concerns and is the first injunction against any nuclear power plant in Japan in 50 years. Specifically, the court ruled that regulations implemented after the 2011 Fukushima disaster are no guarantee against another accident.

    “The new regulations are not reasonable, therefore there is no need to study whether the Takahama plant satisfies them,” the court said, adding that the regulations are “so loose that compliance with these regulations wouldn’t secure the safety of this plant.”

    According to NHK, residents of the Fukui Prefecture are in favor of blocking the reactors, and have “argu[ed] that the government’s plans ignored or underestimated risks and failed to meet tougher safety standards that were imposed after the Fukushima crisis.”

    Kansai Electric is working on getting the injunction lifted. Originally, the reactors were scheduled to restart later this year, but that is now unlikely given the setback.

    What’s an investor to do?

    Raymond James analyst David Sadowski believes that while the injunction is negative for the uranium space, there are many other areas in Japan that will ultimately support reactor restarts.

    He states in a note released this week that the “underlying narrative remains supportive” and “reactors should get restarted eventually and much of the 100 Mlbs will be required to fuel them.” He also notes that on the whole there has been a lot of support for getting reactors back online, and that’s led him to view this setback as merely a bump in the process.

    He does, however, note that it is unclear if Japan’s pro-nuclear central government will be able overturn district courts like the one in Fukui Prefecture. In addition, the court’s decision could still have a negative impact on equities, and could slow down the process of bringing nuclear power back to Japan. Sadowski also believes that if more utilities are blocked, the uranium price could bear the burden, sinking lower as the market factors in the implications.

    Still, Sadowski is positive on the uranium market long term. His note includes a model of a scenario in which 20 reactors restart over the next four years, and it shows that excess inventories would be slowly chipped away at through to about 2019. If only 10 reactors come online over five years, oversupply will rise, negatively impacting prices. However, even in the latter scenario the situation would be rectified by roughly 2020, leaving the supply shortfall intact.

    Moving forward, investors would do well to watch not only what’s going on in Fukui Prefecture, but also what’s happening in Kagoshima Prefecture. According to NDTV, activists there are seeking an injunction to stop the restart of reactors at Kyushu Electric Power Company’s (TSE:9508) Sendai nuclear power plant. A court ruling is expected there on April 22.

     

    Related reading:

    Uranium Price Holding Ground as Market Moves to Q2

    uranium investingdavid sadowskinuclear power
    The Conversation (0)

    Go Deeper

    AI Powered

    Namibia Uranium Project Viable

    PhosEnergy: A Uranium Game Changer?

    Latest News

    CORRECTED: CHARBONE Hydrogen is Acquiring Hydrogen Production Assets and Closing a First Tranche of $1M Private Placement Financing

    CORRIGE: CHARBONE Hydrogene acquiert des actifs de production d'hydrogene et cloture une premiere tranche d'un financement par placement prive de 1 M$

    Purepoint Uranium Closes Final Tranche of $6 Million Private Placement

    Alvopetro Announces August 2025 Sales Volumes

    Term Sheet to Treat Colorado Project Uranium Waste Dumps and Gross Revenue Sharing Agreement with DISA Technologies

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Energy Investing Stocks

    Saga Metals

    SAGA:CA

    Basin Energy

    BSN:AU

    AuKing Mining

    AKN:AU

    North Shore Uranium

    NSU:CC

    Skyharbour Resources

    SYH:CA

    American Uranium

    AMU:AU
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×