The price of uranium, already at a 25-year high, should rise further, pushed by strong demand for the fuel, according to reports issued Monday by two Australian uranium companies. Dow Jones reported on the companies' statements.
Nov. 7, the spot price of uranium oxide stood at US$33.50 a pound, up US$4.00 from early July, and up more than threefold from US$10.00 in early 2003, according to The Ux Consulting Company LLC, which publishes world nuclear fuel spot and term prices.
The high uranium price, and encouragement from the government to develop uranium mines for export, has sparked considerable exploration activity in Australia, which hosts around 40% of known world resources of the fuel, and a mini-boom on the stock market, though this has moderated in the past two months.
Malcolm Mason, executive director of Redport Ltd. (RPT.AU), which is developing a number of uranium prospects in Australia, said the rising uranium price reflects prospects for increased future demand and is "expected to remain strong for some years."
A number of factors support the optimistic price outlook, he said.
Nov. 7, the spot price of uranium oxide stood at US$33.50 a pound, up US$4.00 from early July, and up more than threefold from US$10.00 in early 2003, according to The Ux Consulting Company LLC, which publishes world nuclear fuel spot and term prices.
The high uranium price, and encouragement from the government to develop uranium mines for export, has sparked considerable exploration activity in Australia, which hosts around 40% of known world resources of the fuel, and a mini-boom on the stock market, though this has moderated in the past two months.
Malcolm Mason, executive director of Redport Ltd. (RPT.AU), which is developing a number of uranium prospects in Australia, said the rising uranium price reflects prospects for increased future demand and is "expected to remain strong for some years."
A number of factors support the optimistic price outlook, he said.
