Fears about peak oil and the concept of uranium as a cleaner energy source have coupled in the industry’s collective imagination and forced the price of uranium to triple in the last year. On the supply side experts are alerting the public of shortages and many are saying that the uranium price will continue to climb as a result. With bio-energy solutions seen as being far-off in the future, uranium is being touted as nothing less than the solution to world’s energy and greenhouse gas problems.
Consequently, the juniors are aggressively exploring for the next uranium ore body. But as uranium decays, it emits radiation. For that reason uranium mining is subject to the most stringent regulations of any mining industry. The licensing process is lengthy and expensive and uranium production regulations make production prohibitive to juniors. So what becomes of a junior uranium company once it has a significant ore body? Conversely, how does a major like Cameco Corp. acquire more valuable uranium to meet growing demand and remain the industry leader it has been?
...Cameco Corporation, located in Saskatchewan, is the world’s largest uranium producer. During its May 1, 2007 First Quarter Results conference call the company outlined its exploration strategy, which directly involves using the expertise of junior companies. During the call Cameco management said that Cameco has already entered into alliances and joint ventures with exploration companies in Gabon in western Africa and in Nunavut.
Consequently, the juniors are aggressively exploring for the next uranium ore body. But as uranium decays, it emits radiation. For that reason uranium mining is subject to the most stringent regulations of any mining industry. The licensing process is lengthy and expensive and uranium production regulations make production prohibitive to juniors. So what becomes of a junior uranium company once it has a significant ore body? Conversely, how does a major like Cameco Corp. acquire more valuable uranium to meet growing demand and remain the industry leader it has been?
...Cameco Corporation, located in Saskatchewan, is the world’s largest uranium producer. During its May 1, 2007 First Quarter Results conference call the company outlined its exploration strategy, which directly involves using the expertise of junior companies. During the call Cameco management said that Cameco has already entered into alliances and joint ventures with exploration companies in Gabon in western Africa and in Nunavut.
