For now, at least, uranium is dead. Its killer was cold, hard economics. Virginia Uranium’s Strangely Short Half-Life, Bacon’s Rebellion, February 1, 2013 by Peter Galuszka “…….Back in 2007, uranium prices were about $140 a pound. That touched off a renewed effort to mine the Coles Hill Farm tract in Pittsylvania County, one of the country’s largest uranium deposits.
As both sides of the argument poured money into lobbyists’ pockets, something happened that was beyond their control. Uranium prices set by global demand started dropping. By 2010, they had plummeted to about $70 a pound because of the global economic slowdown. After the Fukushima nuclear disaster in Japan in March 2011, they fell to the mid-$40-a-pound level, where they are now.
What that means for uranium mining in Virginia can be explained with simple arithmetic. According to Brett Arends of the Wall Street Journal, “The industry needs prices to be at $75 to $80 a pound for future mine production to be profitable.” In other words, for Virginia Uranium’s project to work, prices would likely need to rebound by about $30 a pound. I have noted this in a previous blog.
The bad news for uranium continues.
According to another article in this morning’s Wall Street Journal, U.S. utilities are starting to shut down or consider dropping some of their nuclear power stations because of unexpectedly cheap natural gas. Richmond-based Dominion Resources has announced it is shutting down its Kewaunee nuclear plant in Wisconsin this summer, even though it has 20 years left on its operating license.
Dominion says it is cheaper for it to meet its sales contracts with other utilities by buying electricity on the open market. Presumably that means electricity created by gas. Industry analysts believe that other nuclear utilities that might consider shutting down or have already idled some of their nuclear operations are Exelon Corp., Entergy Corp., Edison International and Duke Energy Corp.
The invasion of natural gas also means tough times for the future of nuclear power, which just a couple of years ago seemed on the verge of a rebound. According to the Journal, fixed costs for a power stations run $15,000 per megawatt for a modern gas plant, $30,000 for a coal plant and $90,000 for a nuclear plant.
The newspaper notes that nukes also have extra costs because they need more security guards and have more demanding maintenance and spent fuel storage issues. It is hard to recover the higher costs because regulators who set electricity rates in some states require utilities to go with the cheapest fuel possible……
For now, at least, uranium is dead. Its killer was cold, hard economics.
http://www.baconsrebellion.com/2013/02/the-unusually-short-half-life-of-virginia-uranium.html
http://nuclear-news.net/2013/02/02/uranium-industry-is-being-killed-off-by-cold-hard-economics/
