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.
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.
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."
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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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.
Ux consulting reports that spot uranium U3O8 was unchanged as of August 4, trading at $64.50 USD/LB.
The uranium futures market is showing a moderately bullish outlook with December 2008 uranium futures last settling at $72 USD on the NYMEX.
Republican Presidential candidate Sen. John McCain is calling for the construction of 45 new nuclear reactors by 2030.
Senator McCain stated.........
"Every year, these reactors alone spare the atmosphere from the equivalent of nearly all auto emissions in America. Yet for all these benefits, we have not broken ground on a single nuclear plant in over thirty years,"....."And our manufacturing base to even construct these plants is almost gone."
In addition to the 45 new reactors by 2030 the McCain plan also outline a goal of an additional 55 nuclear reactors to serve the US market.
McCain outlines nuclear plan
