Uranium (U3O8 : US$41.50), Net Change: -0.25, % Change: -2.39%
The "ain't gettin' no love" sector continues to lay the foundation for the perfect storm. This week, U3O8.biz reported on the
increase of U.S. nuclear output production, as reactors in New York, Michigan and California recently returned from refueling
outages. According to a report from the U.S. Nuclear Regulatory Commission, output from the 104 U.S. nuclear plants rose
1,313 megawatts to 78,371 megawatts with reactors running at 78% of nationwide capacity. Also this week, The Sydney
Morning Herald reported that Energy Resources of Australia (ERA), the listed uranium arm of Rio Tinto (RTP), said its March
quarter production at its Ranger Mine (one of the largest uranium mines in the world) fell by 27% year over year to 888 tonnes
of uranium oxide. This was the result of downtime on a drill rig, which restricted blasting operations in the open-cut and slashed
the amount of ore that could be mined by 59% compared with a year ago. Rob Atkinson, the CEO of ERA, also noted that there
had been no progress in ERA's plan to develop the $20 billion Jabiluka uranium deposit near Ranger. ERA has undertaken to
not develop the deposit without the consent of the traditional owners. Atkinson also commented on the uranium industry,
stating, "I don't think in the mid- to long-term there are enough uranium mines or enough uranium supply to meet the quite
potentially huge demand from domestic electricity generators, especially from the likes of China." And it has got to be assumed
that if China follows through on its massive nuclear power build plans, it won't be long before they start picking off some of the
smaller explorers to secure long-term supplies. The Chinese have no problem thinking 10 years out, even 50 years when Beijing
so directs, The Sydney Morning Herald added.