Antinuclear

Global uranium projects stalled because not profitable

Several uranium projects planned globally are stalled because the spot price isn’t high enough to justify development, said Andy Lloyd, chief development officer for Rio Tinto’s uranium unit.

Rio Tinto Executive: Rossing Uranium Mine Losing Money, Fox Business, By Stephen Bell   DOW JONES NEWSWIRES,  July 11, 2011PERTH   PLC’s (RIO) flagship Rossing uranium mine in Namibia is losing money, as the spot price for uranium, the key fuel for nuclear reactors, continues to languish in the wake of Japan’s atomic crisis, a senior Rio executive said Monday.

Several uranium projects planned globally are stalled because the spot price isn’t high enough to justify development, said Andy Lloyd, chief development officer for Rio Tinto’s uranium unit.

The spot price of U3O8, the most actively traded compound of uranium, was US$52.75 a pound on July 4, according to U.S.-based UX Consulting Co. This is down from above US$70/lb in January.

Lloyd, speaking to reporters on the sidelines of the Boao Energy, Resources and Sustainable Development Conference in Perth, declined to say what uranium price Rio needs for Rossing–the world’s third-largest uranium mine by production–to be profitable.

The medium-term outlook for uranium has been clouded by explosions and radiation leaks at the Fukushima reactor complex in Japan following the devastating March 11 earthquake and tsunami, as governments re-think strategies that relied on generating more nuclear power.

At the same time, the industry has faced increased concerns about sovereign risk in countries with large deposits of uranium……

“They [Namibia] have a number of low-grade uranium mines that, at the moment, aren’t making any money, such as Rossing,” he said….

July 11, 2011 - Posted by Christina Macpherson | Uncategorized