Monday, December 19, 2011

Three major companies stepping back from uranium mining/Uranium in surplus, prices to stay low/Company pulls out of uranium milling project in Colorado

 
 
Three major companies stepping back from uranium mining

After Fukushima, suddenly the expected darling of local mining investment, has turned into a pariah. Both the Areva and Marenica statements refer to events after Fukushima, highlighting the uncertainty that has entered the industry since the nuclear disaster in Japan……

Perhaps it is a case of both Kalahari Mineral and Extract Resources taking what they can get and opting out of an industry that is fast turning into a lame duck. [or a dead cat - I haven't got a picture of a lame duck]

Namibia Economist 16 Dec 11 When three major players in one industry, all announce substantial shifts in strategy and/or focus in a very short span, it signals a fundamental change in the underlying assumptions. These past two weeks saw one surprise after another as first Extract Resources, then Marenica, and finally Areva announced a dramatic turn in their strategies which probably points to a change of heart and a significant reappraisal of prospects and strategies.

………Earlier this week Areva made the announcement that every
informed mining analyst was expecting for some months: The Trekkopje
operations will be shut down. Areva also announced the shut down of
their South American, West African and South African operations. In a
comprehensive statement released only Thursday, Areva says it will
reconsider its entire uranium operation conducted under Uramin. While
the statement is full of legalese and mineralogical terminology, the
message it conveys is that Areva has lost money by the billions and is
forced to reconsider and reconsolidate its financial position before
re-opening any of their uranium operations. The overall tone is
negative.

http://nuclear-news.net/2011/12/16/three-major-companies-stepping-back-from-uranium-mining/#more-20504

Uranium in surplus, prices to stay low


Resource Capital Research — December Quarter 2011: Global Uranium Companies Equity Research Report , Dec 16, 2011 (MARKETWIRE via COMTEX) — Key Points
…Uranium Market: The dynamics driving the near term outlook remain dominated by the
flow-on effects of Fukushima, including Germany’s decision to close reactors.

– Uranium traders suggest caution going into 1H12, with potential for utility surplus inventory dispositions to remain a feature of the market. The spot uranium price is expected to trade around the low US$50s/lb 1Q12 and possibly dip below.


Company pulls out of uranium milling project in Colorado

Cotter Corp. won’t try to rebuild uranium milling program in Cañon City, must move toward final clean up 12/16/2011 By Bruce Finley The Denver Post Cotter Corp. has decided it is “no longer economic” to process uranium at its contaminated Colorado uranium mill and will move toward clean-up of the site next to Cañon City along the Arkansas River.
A letter from Cotter president Amory Quinn says Cotter “will not seek to renew” the radioactive materials license Cotter has from the state health department. Cotter plans to decommission and decontaminate the mill site and to request license termination, Quinn said in the Dec. 12