Antinuclear

Bleak prospects for Australia’s uranium industry

Ord Minnett senior resources analyst Peter Arden says the negative outlook for the uranium sector may be very prolonged. The disaster had fractured confidence in the resources sector as a whole and this damage would not be repaired quickly, Mr Arden said..Mr Gillham said the movement against developing nuclear power plants in Australia was likely to grow.

Uranium sector negativity likely prolonged, Sydney Morning Herald, Rebecca Le MayMarch 18, 2011  “…….Morningstar senior research analyst Mark Taylor said the near-term outlook for the uranium market was negative as Japan kept nuclear power plants offline while safety inspections, clean-ups, upgrades and closures were made.

“This could take a number of years,” Mr Taylor said of the rebuilding effort.

“Japan accounts for about 10 per cent of global uranium consumption and around one-fifth of its reactors are affected.

“This might not sound like much but it’s more than enough to influence prices … in a relatively thin commodity market.”

Ord Minnett senior resources analyst Peter Arden says the negative outlook for the uranium sector may be very prolonged.

The disaster had fractured confidence in the resources sector as a whole and this damage would not be repaired quickly, Mr Arden said…….

Wealth Within chief analyst Dale Gillham said Australia’s pure play uranium miners like ERA and Paladin were likely to remain out of favour with investors for some time.

“By comparison, investors will choose companies with more diverse exposure such as BHP, which is better positioned to ride out the storm,” he said.

Mr Gillham said the movement against developing nuclear power plants in Australia was likely to grow.

March 25, 2011 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, uranium