on April 4, 2009 by admin in Asia Pacific Trade, Australian Business, Australian News, Cheap Energy, Global Economy, Nuclear Deals, Thorium Energy, Uncategorized, Comments Off

The Scramble for Alternative Fuel has Zeroed in on Uranium Once Again

The tragic accident of Chernobyl in 1986 made uranium a devastating term to human race. The fear created by the disaster, immediately reflected on uranium mining and not to mention the price. Even countries with nuclear projects either shelved or delayed the process due to opposition from the public. Till the year 2000 the price of uranium per pound hovered around $7. Gradually the world while scouring for cleaner and cheaper fuel found uranium as the answer to the surging energy needs.

The renewed interest in uranium has taken the mining companies around the world towards the African continent. The countries of Africa currently engaged in mining are Niger, Congo, Malawi, Zambia, Namibia, Botswana and South Africa. The demand for uranium has increased the prices by manifold in the early half of 2007 to $136 per pound before falling back to $93. Most mining companies bet on the African nations because they provide cheap labor and high grade output.

African Energy Resources Ltd., an Australian-owned mining outfit, is drilling on the southern border of Zimbabwe. Canadian-owned mining outfit, Equinox Ltd. is active in the Zambia’s northwestern region. Another Australian firm Paladin Energy Limited is successfully able to mine in the border region of Botswana.

Nuclear energy currently dishes out 16 percent of the world’s electricity need. The percentage is expected to grow as nations invest in alternatives that are cheaper and cleaner than fossil fuels such as oil, coal and gas.

There are currently about 440 nuclear reactors around the world. Sixteen are due to retire by 2013, 33 are under construction, 94 are planned and another 222 proposed. As more electricity is produced using uranium, the prices are too expected to rise. Yet uranium will remain one of the cheapest sources of energy until thorium becomes technologically viable.

Toboc Trade News

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