Uranium Industry One Year After Fukushima

Energy Investing

One year after the Fukushima incident, the World Energy Council has issued a report on the current status and the future of the nuclear industry.

By Dave Brown — Exclusive to Uranium Investing News

Uranium Industry One Year After Fukushima

The World Energy Council (WEC) released a report documenting the state of the nuclear industry and its 93 participant nations on the one year anniversary of the Fukushima tragedy. The content is intended to provide leaders around the world with a fact-based, high-level analysis and review of the current status and potential future for the nuclear industry.

For uranium investors and industry stakeholders, the Fukushima accident has not led to any significant retraction in nuclear energy programs in countries other than Japan, Germany, Switzerland, and Italy. While advancement and development in some countries’ programs have been delayed, there does not appear to be an indication that global pursuit of nuclear power has declined considerably in response to Fukushima.

Duncan Hawthorne, President and CEO of Bruce Power, explained his current bullish outlook for the nuclear power industry, commenting that “China is very active. Russians are very active. [They are] selling domestically and using that as a means of expanding their reach.”

The WEC report notes that “[n]uclear energy will play a full part in the future energy mix provided nuclear safety and at the same time transparency are continuously being reinforced. This will strengthen public acceptance, in particular through the setting up and maintenance of efficient governance of nuclear safety that is internationally credible.”

Uranium spot market prices

The uranium spot market price as reported by TradeTech declined slightly this week to $51 per pound, a drop of 1.6 percent from the previous week’s value. Reduced demand combined with a motivated seller with an aggressively-priced offer were the catalysts for the change.

Trading volumes for the week were relatively low, with traders, producers, and financial entities acting as participants. Uranium for delivery in Europe is still being offered at prices slightly above the price for uranium available for delivery in North America; however, the separation between the two has condensed.

Company news

Paladin Energy Ltd. (TSX:PDN,ASX:PDN) announced that it will begin exploration development at its Aurora Energy uranium assets in Canada. The news came following an amendment to the Labrador Inuit Lands Act which lifts the moratorium on uranium mining and development on Labrador Inuit lands. Paladin holds five deposits within the region through its subsidiary Aurora Energy. The uranium deposits are estimated to host approximately 15.1 million pounds of uranium measured resources and 68.7 million pounds of inferred resources.

Drilling is planned for the third quarter of this year, and will focus on infill and extension drilling of the Michelin uranium deposit.

Paladin said in a statement that clearance would also be sought for the reopening of the Michelin adit, which was constructed by British Newfoundland Exploration (Brinex), in order to obtain samples for metallurgical purposes and better understand the continuity of the mineralization and geological setting of the deposit.

The news is a positive development for investors as it indicates that realization of future global demand for secure energy resources is generating traction. With global competition to meet growing energy demands on the rise, Labrador’s new, more favorable mining policy is already leading to increased opportunities for investment.

Junior company news

Kivalliq Energy Corp. (TSXV:KIV) was awarded the KIA 2012 Environmental Excellence Award for outstanding environmental stewardship at its Angilak property.

Crosshair Energy Corp. (TSX:CXX,AMEX:CXZ) announced that the Nunatsiavut government of Newfoundland and Labrador has officially lifted a moratorium on uranium mining. Investors should note that even though 92 percent of Crosshair’s Labrador property falls outside the Labrador Inuit lands, “the moratorium had a significant negative impact on the market value of all companies operating in Labrador.”


Securities Disclosure: I, Dave Brown, hold no direct investment interest in any company mentioned in this article.

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