Uranium Energy Corp. (UEC), a U.S. miner and processor of the nuclear fuel, said global supply will fall short as exploration investment is shortened following the Japanese nuclear crisis. The Global X Uranium ETF (URA), which track uranium-mining companies, has fallen 21 percent since March 10, the day before Japan’s strongest earthquake on proof and a tsunami triggered explosions and radiation leaks at the Fukushima Dai-Ichi nuclear plant. Australian uranium miner Mantra Resources Ltd. last month decided to a 12 percent cut in the capture offer from Russia’s state-owned Rosatom Corp. because of the crisis.
Annual uranium use surpass production by 50 million pounds following the damage done to Fukushima, said Amir Adnani, chief executive officer of Corpus Cristi, Texas-based Uranium Energy. “Because of Fukushima, because of the reaction, the knee- jerk reaction, the expansion is not going to occur at an adequate pace to fill the current deficit and meet growing demand,” Adnani said in an April 13 phone interview from London. Uranium Energy rose 6 cents, or 1.5 percent, to $4.09 as of 4:15 p.m. in American Stock Exchange trade. The shares have drooping 13 percent since the earthquake.
Still, Adnani said he doesn’t expect a negative impact on Uranium Energy because its Palangana mine in Texas started production in late November. “Everything we had to do to start production was finished before Fukushima and what seems currently to be a tougher environment,” he said. The price of U3O8, the deal form of uranium, declined 14 percent since the earthquake to $57.50 a pound, according to data from MF Global Holdings Ltd. Nuclear power offer for about 20 percent of U.S. electricity, according to the U.S. Energy Information Administration.
Annual uranium use surpass production by 50 million pounds following the damage done to Fukushima, said Amir Adnani, chief executive officer of Corpus Cristi, Texas-based Uranium Energy. “Because of Fukushima, because of the reaction, the knee- jerk reaction, the expansion is not going to occur at an adequate pace to fill the current deficit and meet growing demand,” Adnani said in an April 13 phone interview from London. Uranium Energy rose 6 cents, or 1.5 percent, to $4.09 as of 4:15 p.m. in American Stock Exchange trade. The shares have drooping 13 percent since the earthquake.
Still, Adnani said he doesn’t expect a negative impact on Uranium Energy because its Palangana mine in Texas started production in late November. “Everything we had to do to start production was finished before Fukushima and what seems currently to be a tougher environment,” he said. The price of U3O8, the deal form of uranium, declined 14 percent since the earthquake to $57.50 a pound, according to data from MF Global Holdings Ltd. Nuclear power offer for about 20 percent of U.S. electricity, according to the U.S. Energy Information Administration.
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