Uranium Energy Corp. (UEC) Chief Executive Amir Adnani suppose prices for the radioactive metal to continue rising on tighter supply over the next little years amid growing demand from the nuclear-power sector. "Mine production for uranium is essentially only enough to meet two thirds of present demand," or about 15 million pounds a year, Chief Executive Amir Adnani said. "Over the after that two to three years, you are going to have a very stretched uranium market on the supply side," which is pushing prices higher. On the spot market, uranium is going for about $60 a pound, a almost 40% gain since lows seen in the past six months, Adnani said in interview Friday.
In the post Cold War era, secondary source of the metal, such as from decommissioning Russian nuclear weapons, became a important supply for the power industry. "That run out in 2013" Adnani said. The U.S. is the major consumer of uranium, with 104 nuclear power reactors that need 55 million pounds a year. But with the country's uranium production at just 3.5 million pounds, mainly of the required supply is imported. "There is more confidence on foreign uranium than there is on foreign oil," Adnani said. New nuclear growth is stinted in the U.S. by lengthy licensing processes and undecided desire to spend billions due to low prices for natural gas, an extra fuel source that tends to drive market prices for power.
However, nuclear power generation is rising at a fast clip overseas, which is driving uranium demand. China is build 25 reactors while the United Arab Emirates is also building nuclear invention. The Austin, Texas base company is in a place to cash in on these trends since it began production at its first uranium mine this week. The Palangana project in South Texas, which is predictable to produce 400,000 pounds of uranium in 2011, is "the only new uranium mine to go into manufacture in the world this year," Adnani said. Uranium Energy will also bring online one additional mine at its Goliad project, also in Texas, next year.
In the post Cold War era, secondary source of the metal, such as from decommissioning Russian nuclear weapons, became a important supply for the power industry. "That run out in 2013" Adnani said. The U.S. is the major consumer of uranium, with 104 nuclear power reactors that need 55 million pounds a year. But with the country's uranium production at just 3.5 million pounds, mainly of the required supply is imported. "There is more confidence on foreign uranium than there is on foreign oil," Adnani said. New nuclear growth is stinted in the U.S. by lengthy licensing processes and undecided desire to spend billions due to low prices for natural gas, an extra fuel source that tends to drive market prices for power.
However, nuclear power generation is rising at a fast clip overseas, which is driving uranium demand. China is build 25 reactors while the United Arab Emirates is also building nuclear invention. The Austin, Texas base company is in a place to cash in on these trends since it began production at its first uranium mine this week. The Palangana project in South Texas, which is predictable to produce 400,000 pounds of uranium in 2011, is "the only new uranium mine to go into manufacture in the world this year," Adnani said. Uranium Energy will also bring online one additional mine at its Goliad project, also in Texas, next year.
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