China demand driving renaissance of global uranium market

PERTH - China’s unquenchable thirst for uranium is driving a renaissance of the market and is likely to pull the global U-sector out of its current doldrums and drive much-needed price increases, according to Bannerman Resources’ Managing Director and CEO, Brandon Munro.

Addressing the Paydirt 2016 Africa Down Under mining conference in Perth, he said the nuclear industry was experiencing unprecedented growth through China’s burgeoning energy expansion.

“Now is one of the most compelling times in the cycle for high growth investment in the uranium plays,” Munro told delegates. “It is widely accepted that current decade-low uranium prices are unsustainable and will increase.

“The nuclear industry is experiencing unprecedented growth through China’s expansion – the likes of which have not been seen before. This has been supported by further strong non-OECD growth, fuelled by Russia and India.

“Uranium is a key source of clean, base load power seeing solid growth profile in the OECD. “These factors all merge to suggest a looming supply shortfall in the market, with potential short term catalysts. This includes very few uranium development projects of scale ready to respond.

“All of which points to an abrupt and sustained uranium price correction, which has a very similar dynamic to 2005.”  www.bannermanresources.com.au (ATI).