International Investing

See our previous post on the next boom commodity

More uranium mine flooding has pushed the price over $100 a pound. Supply keeps going down as demand is rising:

Last week, ERA, which is controlled by Rio Tinto, said production from its Ranger mine in the Northern Territory would fall between 25 per cent to 35 per cent next year from its 2006 level following the heavy rainfall at the mine and processing plant in late February. It said output this year will be steady due to ore that was mined in 2006 and stockpiled.

…

Analysts estimate there are about 450 nuclear power plants in operation, and almost 30 under construction. This represents one of the nuclear industry’s biggest expansion periods since the 1960s as it has regained acceptability by promoting itself as a way to combat energy security fears and increasing carbon emissions.

New power plants require more uranium when they start production then at any other time of operationAnalysts estimate that new reactors on average require around 1.8m pounds annually, at least in the initial years of operation. This compares with the 400,000 to 500,000 pounds consumed each year by existing facilities.