Uranium threatened by political shake-ups

FP reports on uranium and the politcal scene around the globe.

In a note to clients, Raymond James analyst Bart Jaworski pointed out that new political leadership in key European countries could cause them to waver on their nuclear power plans. That in turn could be bad news for the uranium market.

“In Europe, the road to a nuclear revival [and increased uranium demand] may not be as smoothly paved as it was last week,” he wrote.

The most visible example is in Britain. Incoming Prime Minister David Cameron appears to support predecessor Gordon Brown’s plan for up to 10 new nuclear reactors in the country. But Mr. Cameron was forced to form a coalition government with Nick Clegg’s Liberal Democrats, who prefer energy conservation and renewable sources (however, the Liberal Democrats have said they will abstain from voting on the issue).

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