By Melissa Pistilli-Exclusive to Uranium Investing News

While uranium spot prices are expected to remain flat for 2010 and into 2011, rising demand from the growing nuclear power utilities sector should benefit uranium prices over the long-term.

Unlike contract prices, spot prices are determined by demand from non-contracted utilities. “They’ve replenished their (uranium) supplies. So this year there won’t be as much buying by utilities,” said Patricia Mohr, senior commodities analyst with Scotia Capital Markets.

But Mohr sees uranium supply requirements for those utilities rising over the next several years and spot prices should rise as well.

TradeTech CE Gene Clark sees spot prices averaging between $40 and $60 per pound over the next few years.

Global uranium demand should quadruple over the next 30 years, Professor Barry Brook of the University of Adelaide told attendees at the Paydirt 2010 Australian Uranium Conference Monday. “Under this growth scenario, global uranium consumption will rise from 69,000 tonnes annually at present, to about 285,000 tonnes annually by 2040.”

First Uranium Still Facing Financial Troubles

Despite the reinstatement of environmental authorization for the company’s future tailings storage facility at Mine Waste Solutions (MWS), First Uranium Corp. [TSX: FIU] says its financial situation is still “severely compromised.”  

While several potential investors have submitted proposals, “none of the proposals received to date are acceptable.”

Expansion plans for the Toronto-based miner’s Ezulwini uranium and gold project in South Africa have been held up over the inability to acquire a facility to store runoff from the MWS’s tailings retreatment operations.

“Now [that] we have the authorization we can concentrate on the process of securing financing for the construction of this tailings storage facility at MWS and our plans for ramping up our production at both operations,” said First Uranium CEO Gordon Miller.

On Monday, shares of First Uranium on the TSX were trading at $1.46.

 Uranerz Updates South Doughstick Technical Report

Uranerz Energy Corporation [TSX: URZ] has announced it has received an updated NI 43-101 technical report on its joint-venture South Doughstick Property in Wyoming’s Powder River Basin.

The South Doughstick is a part of Uranerz’ Arkose Mining Venture of which it owns 81 per cent with the remainder held by its partner, United Nuclear LLC. Measured and indicated resources on the South Doughstick are recorded at 1,852,673 pounds equivalent U308 at an average grade of 0.121 percent.

On Monday, shares of Uranerz on the TSX were trading at $1.98.

Bayswater Uranium Commences Drilling on Fife Island Target

Bayswater Uranium Corporation [TSX-V: BYU] has announced the start of a 5-7 drill hole program on the Fife Island target on its Collins Bay Extension Project in Saskatchewan. The miner also plans to drill a minimum of three holes in a second target just 8 km east of Cameco’s Collins Bay-Eagle Point Mine. The work will be conducted by CanAlaska Uranium Ltd [TSX: CVV].

Under an option agreement, CanAlaska will perform at least $4.0 million exploration work within 5 years and issue a total of 500,000 shares to Bayswater to earn a 51 percent participating interest in the project. CanAlaska can increase its interest to 70 percent by performing an additional $2 million in exploration work over three years.

“We are excited about the drill follow up of an historical drill intercept after reevaluation by CanAlaska’s knowledgeable technical team,” said Bayswater President George Leary. “The second new drill target, defined by state-of-art VTEM and gravity surveys which indicate a conductor in coincidence with an alteration system and favourable structure, has the size, geological and geophysical character and proximity to known uranium deposits that are highly favourable indications of a significant target.”

On Monday, shares of Bayswater Uranium on the TSX-Venture were trading at 0.52 cents.

ARMZ Drops Bid for Khan as CNNC Offer Moves Forward

Russia’s uranium giant ARMZ has decided to back off its hostile takeover bid for Canadian-based Khan Resources [TSX: KRI] that expires today.

China’s CNNC bested ARMZ’ C$0.65 cents a share bid, which Khan’s Management had called inadequate and highly opportunistic. CNNC’s C$0.96 per share offer was unanimously approved by Khan Management as fair and financially in the best interests of Khan shareholders. 

Instead of counter-offering, ARMZ says it’s backing off over perceived uncertainty concerning licensing and ownership of the Dornod uranium property.

Last Tuesday, a committee established by the Mongolian Parliament questioned the validity of numerous uranium exploration and exploitation licenses in Dornod based on infringements of Mongolian mineral and energy laws.

On Monday, shares of Khan Resources on the TSX were trading at 0.91 cents.