The spot price of uranium was likely to remain steady for the next two years, averaging between $40/lb and $60/lb, TradeTech CE Gene Clark said in a speech at the 2010 Mining Indaba, in Cape Town.
The uranium spot price enjoyed a strong rally between 2003 and 2007, rising from about $10/lb to more than $130/lb, before
retreating to $45/lb in October 2008, as the global financial meltdown took hold.
During 2009, the uranium price traded sideways, averaging around $46/lb.
However, 2010 holds some promise of
a modest recovery, as utilities – especially from Asia, where nuclear-energy programmes are on the rise – come back into the market.
The expansion of nuclear power in countries such as Korea and the United Arab Emirates will also increase demand for
uranium and spur investment in uranium companies.
Clark noted that there were currently
437 nuclear power plants operational globally, with 56 under construction and 100 planned for construction.
A further 270 nuclear power plants have been proposed for construction.
For this reason, the price is expected to rise to between $55/lb and $65/lb in the
longer term.
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