Uranium in nearest years will become expensive - experts

/INTERFAX-KAZAKHSTAN, Melbourne, March 13, 06/ - In connection with increase of prices for oil, gas, coal, and also due to ecological problems more and more experts say about renewal of nuclear-energy sector, Bloomberg agency informed, forecasting growth of uranium cost in nearest years. In the opinion of assets manager from Canadian fund Sprott Opportunities Hedge Fund LP Jan-Francua Tardiff, due to insufficient number of uranium ready for sale in nearest six months it may become expensive by 27% - till $50 per pound. In November 2004 uranium could be bought at price $20 per pound, whereas last week, according to Metal Bulletin, its price was $39.25 per pound. By the results of 2005 uranium cost jumped up by 76%. Out of all 19 raw goods, cost of which is traced by index of Reuters/Jefferies CRB Index, stronger than uranium last year became expensive only sugar. Even zinc, which, as January survey of Bloomberg showed, is favorite of 2006 among specialists of raw market, will not become expensive so considerably, as uranium. At that the same time, in the opinion of analysts, zinc in the current year will provide the best income level on main grounds of London stock exchange of metals and will grow in price by 21%. As Bloomberg notes, annually from entrails total 60% of uranium is extracted, necessary for nuclear reactors of the world. The rest 40% go to energy sector owing to existing accumulated reserves, and also from Russian processed warheads. At that on the background of growth of prices for oil, gas and coal, and also strengthening of anxiety with problem of global warming demand for nuclear energy is increasing. According to data of International energy agency, nuclear sector may get over $200 bn. of investments by 2030. As World Nuclear Association informed, in the world along with 24 reactors constructed at present time construction of more 41 reactors is planned. "Nuclear industry at present time passes the second revival, - Paul Grey, analyst of Goldman Sachs considers. - The market will stay rather intense, at least, during three nearest years". However some analysts predict, that rally in the market of uranium will be slowed in nearest time because its lack caused renewal of interest to uranium producing projects. So, Victor Lazarovichi, analysts of BMO Nesbitt Burns Inc. considers, that in 2007 wholesale price of uranium will reach peak, averagely being at the level $38 per pound, and then in 2008 will drop till $32 зper pound, as new uranium mines will work, and reactors will start to use uranium fuel more efficiently. [2006-03-13]