Antinuclear

In depressing uranium market, Australian uranium companies freeze development

Frozen: Uranium exploration on hold  North West Star, Nov. 28, 2012 A GLOBALLY weak uranium mining price had led to a development freeze from Valhalla’s exploration company, but they insist the long-term outlook remain positive.

Paladin Energy, the company which is exploring uranium at the Valhalla deposit 40 kilometres North West of Mount Isa, recorded recent losses and frozen development due to the weak uranium price. In a statement, Paladin Energy said it would require a sustainable uranium price, at or above $81.78 Australian dollars per pound to warrant any further expansion or new mine development.

The current uranium price is $41.75 Australian dollars per pound.

Uranium miner Energy Resources of Australia expects to post a full-year loss of between $135 million and $155 million this year, blaming difficult market conditions for the cuts…..
The long-term outlook may not be so bleak with an independent investment researcher claiming there is promise. Senior independent researcher Claire Aitchison said uranium demand was supported by 63 new reactors under construction, 18 reactors undergoing power capacity upgrades and the anticipation of more Japanese reactors coming back online following the Fukushima incident.

However she warned another disaster on the scale of Fukushima could have a significant impact on the nuclear industry.

November 28, 2012 - Posted by Christina Macpherson | business, Queensland, uranium