From the Southwest Research and Information Center:
The sevenfold increase in uranium prices during the past four years has resulted in a tidal wave of uranium ore exploration and development activity around the world. But based on a close review of existing and projected world uranium supplies, there’s really no need for any new mining sites. The fact is, there’s more than enough yellowcake (uranium oxide) in existing deposits and secondary sources to meet projected demand for nuclear fuel for more than 50 years.
The rise in the uranium spot market price (for buyers without long-term contracts) reflects that investors and private industry are focused more on profiting from an imaginary “shortage” than filling a fuel gap to address increased uranium demand to feed new nuclear power stations being advocated by reactor manufacturers. All of which begs the question: is the sudden interest in new uranium mining a matter of real need or plain old-fashioned greed?
That opportunist profiteering may be at the root of the current uranium boom is suggested by the entrance into the market of a new wave of uranium companies — many of which are “junior mining companies” joining the uranium market. The “old wave” of the world’s major uranium producers had already identified uranium ore resources at existing deposits that are sufficient to meet the more than 50 years of current or projected uranium demand. Junior mining companies often have limited financial resources, and instead plan to make money on a commodity that is relatively inexpensive to find and produce in comparison to current prices. Many junior companies have never actually mined anything, and are instead buying up existing claims, leases and other forms of “uranium properties” in the hope of attracting capital to develop them at some time in the future. Often, junior companies want to attract more substantial “senior” mining companies and banks to invest in the deposits that the juniors may identify, but lack the financial resources or corporate track record to fund them.
The current boom is resulting in renewed uranium exploration and development activities in communities that have suffered from the legacy of uranium mining in the 20th century and prospecting near communities that have never faced the juggernaut of uranium mining or other industrial development activity. Many of the communities facing renewed interest in long-dormant mining districts are in low-income rural areas and indigenous communities that have little long-term benefit to show from past uranium mining. The legacy of the first 50 years of uranium mining in those communities can provide a warning to areas where new mines, and rosy projections of economic benefit from the new mining activity, are being touted.
How do we know there’s enough uranium for the next 50 years?
In 2003, the World Nuclear Association (“WNA”) asserted that the known recoverable uranium resources already identified provide a 50-year supply for conventional nuclear reactors at a projected long-term demand of about 70,000 tonnes per year, countering perceptions that uranium for any future nuclear reactors might be in short supply. Recognizing the enormity of the known recoverable uranium resource, WNA asserted:
"The world's present measured resources of uranium in the lower cost category (3.5 million tonnes) and used only in conventional reactors, are enough to last for some 50 years. This represents a higher level of assured resources than is normal for most minerals.”
Read the rest of this interesting article and see the fascinating world graph here:
http://www.sric.org/voices/2006/v7n3/Need_Greed.html
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