Antinuclear

Uranium investing future not all it’s cracked up to be

Uranium hunt could have sour fallout the Age BARRY FITZGERALD AND MATHEW MURPHY September 30, 2009 “………..In contrast with the rest of the metals sector since mid-February, uranium prices have been going backwards. That is why questions are being asked about the viability of the uranium exploration hunt by so many of the ASX-listed explorers, particularly when the journey from discovery to mine can take more than 10 years in this highly regulated sector.

The spot price for uranium – it is a small market but a good indicator of price nevertheless – hit a record $US136 a pound in June 2007. The most recently quoted price by Ux Consulting was $US42 ($48) a pound.

Hedge and investment fund activity in the market has evaporated in the wake of the now waning global financial crisis, leaving uranium prices to real market forces……………….

‘As a result of these lower grades, and/or location in higher-cost geographical regions, next-generation projects will have higher operating costs, on average, than current producers,” CRU said in its Next Generation Uranium – at what cost? report………………..

Ziggy Switkowski, chairman of the Australian Nuclear Science and Technology Organisation, has no doubt that the world is ”going to get more involved in nuclear power more emphatically than what has been acknowledged”.

But he does not see uranium production presenting any ”show stoppers” for at least the next couple of decades.

Uranium hunt could have sour fallout

September 30, 2009 - Posted by Christina Macpherson | 1, AUSTRALIA - NATIONAL, business, uranium | antinuclear, Australia, nuclear, uranium