Long-term demand for nuclear energy is expected to increase; Canada is the second largest producer of uranium in the world
Uranium is again in the Canadian spotlight thanks to the interest of significant financial investors in the mineral. Uranium market participants say the newborn has its advantages, but there is plenty of speculation about how utilities will be affected by rising prices amid rising demand for supplies.
The price of uranium September was highly volatile ছে rising above $ 50 US dollars by mid-month প্রায় about 40 percent, more than all other major products Bloomberg. Prices have dropped to around মার্কিন 45 Towards the end of September, Which is still more than 30 percent per month.
It has been coming towards very stable prices over the last five years, after a gradual decline over the previous five years. In 2007 the price reached 6 136 per pound.
As of September 28, the Canada-based exchange-traded fund Sprout Physical Uranium Trust is approx. 35 percent Since the start of July 19th. It has stockpiled about 16 percent of the world’s annual reactor uranium reserves, Bloomberg Report
This fund gives investors a way to invest directly in uranium without taking actual possession of minerals like the gold fund.
Grant Isaac, senior vice president and chief financial officer at Camaco, a Saskatchewan-based uranium mining company, said the demand for uranium seems to be sustainable. Conference call.
He described the purchase of Sprout’s minerals as undoubtedly beneficial for the uranium market, noting that it was being done in “the most transparent and verifiable manner”, the price of which was available to the public.
Isaac said he is happy to have taken charge as the largest uranium buyer from Sprout Camero.
Uranium does not actually trade in the open market like other products. Rather, buyers and sellers personally negotiate long-term contracts for minerals. Thus it has been said that there is a lack of price transparency in the uranium market.
“One of the things many investors are expecting from the trust is to play a big role in this price discovery process,” said John Siampaglia, chief executive of Sprout Asset Management. Webcast. “And the trust has done just that so far.”
Watching and waiting
The minerals that are needed to supply power to nuclear reactors are not actively buying or selling products despite all the noise in the uranium market. Economist Peter St. Onge Says they are not known for their financial skills and could be “deer in the headlights”.
“It simply came to our notice then [for] For a long time – uranium has been dormant for at least five years, “he told The Epoch Times. “One of the concerns is these boys [the utilities] Caught on flat feet, ”he added.
However, Per Gender, technical adviser to the Sproat Uranium Fund, said during the webcast that “I’m not worried that any suitable material for running the reactor will run out.” He said utilities are probably watching and waiting to see if the price increase is sustainable, as they have some inventory.
The Epoch Times contacted Ontario Power Generation for comment but received no response.
St. Onz, a research fellow at The Heritage Foundation and a former senior fellow at the Montreal Economic Institute, added that there is plenty of room to drive uranium prices before the situation becomes problematic, which would persuade the government to get involved.
Isaac said it should come as no surprise that there has been no response from uranium fuel buyers, as the change in uranium prices has been very abrupt, as it takes time to adjust to the new truth.
Isaac further explained that a problem in the uranium market is incomplete production, which means that mineral production can be sold below cost, thus affecting the market price system.
“I don’t think that’s fully appreciated [Sprott fund] Vehicles are pressed into the market at the moment, ”Isaac said.
A bright future for uranium?
Countries consider the role of nuclear energy in order to move away from fossil fuels in favor of renewable energy. Renewable energy like wind and solar has its drawbacks depending on the weather or the time of day and it can even create its own set Environmental issues.
Also, the energy crisis is plaguing Europe. US benchmark West Texas Intermediate oil prices have risen again and are hovering below 75 755 a barrel. And nAtural gas That’s more than মার্কিন 5 a barrel, the highest level since 201.
Nuclear power is the victim of a handful of disasters, such as Fukushima, Chernobyl and Three Mile Island, but its proponents say it is the safest and least costly form of energy available.
However, nuclear power remains politically unpopular, with St Wong saying some tough choices need to be made because decarbonizing the entire economy does not come without some pain. He said more nuclear plants would be built, which would take time to meet the energy shortage.
“We can play games with solar panels and wind all day. It’s not there yet. Maybe it will be in 20 years. The only way to make this possible in the near future is nuclear, and everyone hates nuclear. No one wants to support nuclear, ”said St. Wong.
According to Ontario Power Generation, About 60 percent of Ontario’s energy is supplied by nuclear power.
Uranium is expected to be in demand in the long run. Natural Resources Canada lists it as a critical mineral, containing rare earth elements and minerals such as lithium, graphite, cobalt and nickel, which are essential for the manufacture of electric vehicles, batteries and electronic components.
Canada Hall The second largest The world produces uranium, at 13 percent – although this is far from Kazakhstan, which in 2019 produced 42 percent of world supplies.
This News Originally From – The Epoch Times