Global uranium news on a slow U3O8 Market
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By Luke Brocki – Exclusive to Uranium Investing News and U3O8.biz
How quickly things change in the spot uranium market. After high volumes in June and July, things appear to be slowing down indeed. Perhaps analysts’ bullish suggestions that this year’s summer slowdown could be avoided were premature.
Price publisher Tradetech says the spot uranium market was extremely quiet in the first week of August. The publisher left its price unchanged at US$64.50 a pound U3O8, flush with that of rival publisher Ux Consulting, but added that no new demand is reported and that buying activity has slowed compared to the past few weeks.
In a web update, Tradetech added that one utility selected suppliers for the delivery of several hundred thousand pounds U3O8 at, or above current price levels. That’s encouraging news for investors looking to keep away from the proverbial summer doldrums.
In industry news, Canada’s Cameco Corp, the world’s largest uranium producer, reported it has closed the acquisition of a 70%-stake in the Kintyre uranium exploration project in western Australia.
According to the Associated Press, the deal closed for US$346.5 million. It is a joint venture 70%-owned by Cameco and 30%-owned by a subsidiary of Japanese giant Mitsubishi Corp, who together bought the Kintyre project from Rio Tinto for US$495 million. But the news wasn’t enough to excite Cameco investors; Cameco stock gained just 20 cents, or 0.6%, to close Tuesday at C$34.05 on the TSX.
Other movers on the TSX included Crosshair Exploration & Mining Corp, which gained four cents, or 10.3%, to 43 cents. Last week, the company announced significant growth to its uranium resource estimates at its Central mineral belt uranium project in Labrador.
Full Metal Minerals was up 18 cents, or 17.8%, to C$1.19, one day after announcing the start of a summer drilling program at its Pebble South property in Alaska; and Quaterra Resources was down 40 cents, or 16.7%, to C$2, after it released some interim financial statements.
In global nuclear news, China continues to expand its economic influence. A Chinese nuclear company has just expressed interest in taking part in the construction of the first nuclear power plant in Belarus. World Nuclear News reported China Guangdong Nuclear Power Group is the fourth entity looking to secure the Belarus contract.
Belarus already approached three reactor builders earlier this year for help with the planned plant, including Russia’s AtomStroyExport, France’s Areva, and US-Japanese Westinghouse-Toshiba.
Finally, the proposed nuclear cooperation agreement between the United States and India continues to pick up speed. In the latest development, Australian Prime Minister Kevin Rudd said Australia would support the civilian atomic energy deal.
Rudd’s statement comes just days ahead of a meeting in Vienna of the 45-member Nuclear Suppliers Group, reported Agence France-Presse. Before coming into effect, the deal must still be approved by the Nuclear Suppliers Group and ratified by the American Congress.
The controversial US-India agreement would provide India with access to global nuclear fuel and technology in exchange for regulatory access to its civilian nuclear facilities. Its critics have continued to attack India’s refusal to sign a nuclear nonproliferation agreement.
Tags: bullish, Cameco, india, mitsubishi, nuclear, tradetech, u3o8, ux consulting
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