Part of the Stock Digest group of websites: Visit Tech Stock Digest  

Is the U.S. Too Reliant on Foreign Uranium for Nuclear Power Plant Fuel?

The nuclear power industry is struggling in the U.S. Several reactors are at risk of early closure due to difficulty competing in the wholesale power markets. New units being built in South Carolina have been abandoned, while the only other nuclear construction project in the U.S.—the Plant Vogtle expansion in Georgia—is behind schedule and over budget. Companies pushing small modular reactors, long touted to be the nuclear plant of the future, continue to search for guinea pigs willing to build the first unit. However, the picture is markedly different around the world.

Today, more nuclear power plants are operable—and planned, proposed, or under construction—than were in March 2011 before the Fukushima accident. According to the International Atomic Energy Agency, 58 reactors are currently being built around the world, with ChinaRussia, and India leading the nuclear resurgence. Even hydrocarbon-rich countries such as the United Arab Emirates and Saudi Arabia are taking steps to add nuclear reactors to their power generation fleets.

Although the drivers are in place for uranium demand to increase substantially, uranium prices continue to remain near decade lows—around $22/lb. Very few, if any, uranium mines can cover the costs of production at that price. As a result, very little investment has been made in uranium exploration and mining.

Amir Adnani, founder, president, and CEO of Uranium Energy Corp., spoke to POWER about the state of the nuclear industry. He suggested a national security crisis is looming in the U.S. 

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

MARKET SUMMARY

INDICES

Name Last Change
DOW 25861.10 0.40%
S&P 500 2753.17 0.75%
NASDAQ 7863.29 0.54%
TSX 16327.38 0.02%
TSX-V 690.78 0.00%

Resource Commodities

Name Last Change
Gold 1192.48 0.12%
Silver 14.75 0.00
Copper 2.66 0.040
Platinum 796.00 0.19%
Oil 66.43 0.78%
Natural Gas 2.94 0.17%
Uranium 26.13 1.28%
Zinc 1.08 0.00%

@RSDigest ON TWITTER

Part of the Stock Digest family of websites
Small Cap Stock Digest