Nov 15 2006
In a new article entitled "Reliable Uranium Supply Needed for Nuclear Renaissance to Continue," Jamie Strauss of Hargreave Hale (UK) told StockInterview.com, "We are somewhat concerned the nuclear renaissance may be, to some extent, slowed down unless we find new ore bodies or bring more production onstream quickly as a result of the Cigar Lake problem."
The head of institutional sales for the London-based brokerage said the impact of the recent flooding at Cameco's Cigar Lake underground mine could make U.S. utilities more aggressive in obtaining future uranium supplies. He told StockInterview.com, "Are they going to sit by and watch this thing happen? I suspect they're going to go straight down to Australia and say, 'release your reserves.'"
Asked if the U.S. government would get involved, Strauss replied, "I think they must. Australia is sitting on 30 to 40 percent of the world's known resources. They have signed a nonproliferation agreement, a free trade agreement around the world and the uranium deal with China. Then, you've got to try and release that."