Uranium 308 Corp. (urco.ob)
Metals and Mining
- The growing demands of the more populous nations of India and China will almost certainly affect demand significantly for the foreseeable future. Presently, India and China satisfy only a small fraction of their overall energy consumption via nuclear power, but both countries have plans in place to increase that percentage. The China Atomic Energy Authority, for instance, recently announced plans to accelerate construction of up to 30 new nuclear power plants and to increase the country's nuclear power capacity fourfold by 2020. China presently has eleven operating reactors on the mainland, and is well into the next phase of its nuclear power program. According to Yury A. Sokolov, Head of the Department of Nuclear Energy and Deputy Director General of the International Atomic Energy Agency, the number of nuclear power reactors around the world is estimated to increase up to 60% by 2030 (Source: International Atomic Energy Agency). With such increases in demand, annual world uranium consumption is estimated to reach 217 Million pounds in 2015 (Source: Cameco).
- The price of uranium has exploded in recent years, peaking at a price of somewhere between $136 and $138 a pound, a stunning 1,365% rise from the early '90s, when uranium prices fell below $10. That outpaced even gold, which rose 400% during that time (Source: Forbes.com). Since that peak, prices have settled back to the $60 range, but many industry observers are predicting a renewed round of price increases. For example, Royal Bank of Canada Capital Markets is telling clients that, "Our 2008 market balance estimate has shifted to a deficit (from a balanced market) and we think the spot market is set for a strong rally." RBC CM's forecast for spot uranium prices over the next two years is $110/lb in 2008 and $100/lb in 2009 (Source: MineWeb.com).
- Nuclear power currently accounts for roughly 19% of the electricity used in the United States, and nearly 17% worldwide (Source: Nuclear Energy Institute). As demand for energy continues to surge, even to maintain this percentage of total energy production will entail significant increases in capacity. From 1980 to 2004, total world primary energy demand grew by 54% and is projected to grow at much the same rate through 2030 (Source: World Nuclear Association). Nuclear power produces as much electricity today as was produced from all sources combined worldwide in 1960. Gary Stoker, Marketing Manager for Nufcor International, believes that demand will continue to grow, but 40% of supply by 2012 will need to come from new mines that have yet to be constructed (Source: Daily Telegraph). Worldwide annual consumption of U3O8 totaled approximately 175 million pounds in 2005, and world primary production was only 108 million pounds, resulting in a shortfall of nearly 70 million pounds (Source: UEX Corporation). Without significantly enhanced primary production, it appears inevitable that significant pressures will push prices upward.
Company Contact Information
2820 Charleston Blvd.
Suite 22
Las Vegas, NV, 89102
USA
- Phone:1-800-295-8840
- Fax:n/a
- E-mail:info@uranium308corp.com
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