Chu Outlines Support For Nuclear Energy

From Politico...

Steven Chu said on Tuesday that he would push as the new energy secretary to help the nuclear energy and clean coal industries jump-start their contributions to battle the nation’s energy crisis.

The Nobel Prize-winning physicist told the Senate Energy and Natural Resources Committee during his confirmation hearing that he’d help streamline nuclear loan guarantees that would help the industry construct several new plants to produce low-emission energy and would push the Energy Department to examine options for recycling nuclear waste.

“I’m supportive of the fact that the nuclear industry should have to be part of energy mix in this century,” Chu said. “And recycling [nuclear waste] in the long term can be part of the solution.”

Uranium Consumers Delay Purchases

According to TradeTech uranium-oxide concentrate for immediate delivery fell $2, or 3.7 percent, to $52 a pound last week as utilities delayed purchases until the 2009 calendar year.

“The severe economic environment seems to have created a greater sense of urgency for some year-end sellers than in previous years,” TradeTech said. “The majority of the buyers have no budget left in 2008.”

Uranium prices gained $10 a pound in November after major producers such as Cameco (NYSE CCJ) announced production cuts.

Uranium Spot Prices Continue To Decline

Spot uranium prices are at levels not seen since January 2006. Amid the credit crisis many utilities are holding back on purchases.

TradeTech’s Uranium Spot Price Indicator dropped $4.00 this week to $47.00 per pound U3O8.

Strike Halts Uranium One Operations

JOHANNESBURG (miningweekly.com) – Uranium-miner Uranium One has temporarily suspended mine operations at its troubled Dominion project, near Klerksdorp, in South Africa, after it was unable to reach an agreement with striking workers.

The miner said in a statement to shareholders on Monday that the move follows labour disruptions last week, which had culminated in a general illegal strike.

Most of the labour force at Dominion had refused to return to work, despite a court order, issued by the Labour Court of South Africa on October 9, which prohibited the continuation of the illegal strike.

Subsequently, Uranium One had, on Friday, started issuing termination notices to the striking workers at Dominion.

"In the meantime, the company is actively exploring all options available to it at Dominion," the company said in a statement to shareholders.

On October 8, the National Union of Mineworkers (NUM) had reported that workers were failing to go to work at the project, as they were being threatened by a group of armed men.

The group of armed men were recently dismissed by the mine and had started calling themselves the "crisis committee", said the NUM.

Uranium Leader Cameco Trading Below Net Asset Value

Shares of uranium producer Cameco (NYSE CCJ) are 50% off their highs and are now trading below net asset value.

Desjardins Securities analyst John Redstone:

"Previous valuations accorded by the market used earnings with a high multiple based on the anticipation of a sharp increase in the price of uranium, he said in a note to clients. "Since then, however, the price has dropped considerably to US$53 from a high of US$146. It is highly debatable whether such high multiples will be applied anymore."

Mr. Redstone said he still believes Cameco stock can rise to its net asset value, adjusting his price target from $34.20 to $29.55. Reflecting the current share price, he also upgraded his recommendation from "hold" to "buy."

Uranium Supporters Score Political Victory In WA

The pro-uranium mining stance of Colin Barnett's newly installed Western Australia Government will spark a significant drilling program in the state that is likely to deliver billions of dollars to both state and federal coffers, according to analysts and the industry.

The most advanced uranium projects in Western Australia include BHP Billiton's Yeelirrie project, the Cameco-Mitsubishi's Kintyre joint-venture, Energy and Minerals Australia's Mulga Rocks and Paladin's Oobagooma/Yampi and Manyingee projects.

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Uranium Industry Faces Labor Shortage

NEW YORK (Associated Press) - The growing uranium and wind industries in Wyoming both face constraints with finding workers, panelists at an energy economics summit said.

Wyoming has seen rapid growth recently in wind projects, and uranium companies are looking to ramp up mining in the state. Both must compete for workers with the booming oil, gas and coal industries.

"Labor is an issue, skilled labor, top to bottom," Glenn Catchpole, president of Uranerz Energy Corp. in Casper, said during a break in Thursday's summit held at the University of Wyoming.

Chuck Foldenauer of Cameco Resources, which operates the only active uranium mine in Wyoming near Glenrock, said uranium mining companies are in need of workers for jobs ranging from construction to chemists.

"As the coal mines expand, and they are, and as more uranium mines come into production, and they will, it's just going to continue to be a very difficult problem," Foldenauer said.

Cameco employs 160 people in Wyoming and is currently looking to fill 30 additional positions, he said.

"I think availability of managers and geologists has definitely slowed down some projects with our company as well as other companies and other industries," Foldenauer said.

In trying to fill the jobs, Cameco is recruiting in Wyoming and nationwide, working with colleges and improving wages and benefits, he said.

Jonathon Naughton, director of the UW Wind Energy Research Center, said the rapidly growing wind energy industry has resulted in a need for more workers in the field.

"They can't hire the people they need for wind energy," Naughton said.

Last year, installed capacity of wind generated energy in the United States increased by 50 percent, he said.

Don Blackmon, faculty associate for freshman engineering and advising at the University of North Carolina at Charlotte, said the United States has been short about 400,000 graduate engineering students the last four or five years.

"It's literally any engineering discipline that you could look at," Blackmon said.