Uranium will explode
A “perfect storm” is brewing in the global uranium market, according to the managing director of Deep Yellow Ltd. Recently addressing the Paydirt 2014 Africa Down Under Conference, Deep Yellow’s MD, Greg Cochran, said nuclear energy growth had been confirmed by most forecasters, and was potentially under-estimated.
“China, India, Russia and the Middle East will be the drivers of the new uranium demand which by all accounts, is tipped to grow from 180 million pounds to 250 million pounds per annum by just 2020,” Cochran said.
“The supply gap will be exacerbated by the fact that contracting for uranium concentrate is now at a 10 year low.”
Cochran said that while global financial markets continued to remain volatile, with access to capital an ongoing challenge and a reduced appetite for exploration investment, nonetheless the perfect storm was brewing for uranium.
“When one looks at uranium supply, new project development has mostly stalled, the HEU secondary supply stream is finished, there has been a widespread curtailment of production and at least 12 to 15 new uranium mines are needed globally by 2020.
“The sector’s strategic response for the development of new mines will only commence when the trigger price moves beyond US$80 a pound, probably between 2016 and 2020.