Lucas de Lange of miningmx.com reports on how high energy prices have created a renewed interest in uranium.
"NEW power stations are being planned worldwide and are being built at breakneck speed - with nuclear power units in the lead," an Eskom expert said recently.
The reasons are obvious: a growing demand for energy because of a healthy world economy and the rising cost of fuel, especially oil. How sensitive the energy question has become was evident last week when the stiff increase in the oil price had worldwide repercussions on financial markets.
However, the international Morgan Stanley banking group says that only when oil trades steadily at around $85/barrel will the demand be dampened so much that the positive outlook on world growth will change in any meaningful way.
Research by another organisation, Cambridge Energy Research Associates, showed that intense investment is now being used to increase energy sources. It's even possible there could be a surplus of oil.
However, it must be borne in mind that the financial position of the world's oil-producing states has improved enormously. Billions of additional US dollars have flowed to them over the past two years, allowing them to pay or reduce their debts while their foreign exchange reserves have shot up. As in the case of Russia, its reserves total $176bn (about R1 000bn) after being under enormous pressure just a few years ago.
The result is that producers are in a strong position to adjust production to keep oil prices at suitable levels. Just in the past year, the Organisation of Petroleum Exporting Countries (Opec), plus Russia and Norway, earned a mammoth $700bn to $800bn (R4 200bn to R4 800bn) from oil.
Neal Froneman, CEO of sxr Uranium One (formed by the amalgamation of Aflease and Canada's Southern Cross Resources), says that a new era for the production of uranium has arrived owing to factors such as those above.
Froneman is currently overseas briefing prospective investors about Uranium One in the hope that it will attract around $65m (R400m) in new capital. The money will be used to develop the Dominion Reefs deposits near Klerksdorp and, Froneman says, that should make the group an important supplier of uranium.
"NEW power stations are being planned worldwide and are being built at breakneck speed - with nuclear power units in the lead," an Eskom expert said recently.
The reasons are obvious: a growing demand for energy because of a healthy world economy and the rising cost of fuel, especially oil. How sensitive the energy question has become was evident last week when the stiff increase in the oil price had worldwide repercussions on financial markets.
However, the international Morgan Stanley banking group says that only when oil trades steadily at around $85/barrel will the demand be dampened so much that the positive outlook on world growth will change in any meaningful way.
Research by another organisation, Cambridge Energy Research Associates, showed that intense investment is now being used to increase energy sources. It's even possible there could be a surplus of oil.
However, it must be borne in mind that the financial position of the world's oil-producing states has improved enormously. Billions of additional US dollars have flowed to them over the past two years, allowing them to pay or reduce their debts while their foreign exchange reserves have shot up. As in the case of Russia, its reserves total $176bn (about R1 000bn) after being under enormous pressure just a few years ago.
The result is that producers are in a strong position to adjust production to keep oil prices at suitable levels. Just in the past year, the Organisation of Petroleum Exporting Countries (Opec), plus Russia and Norway, earned a mammoth $700bn to $800bn (R4 200bn to R4 800bn) from oil.
Neal Froneman, CEO of sxr Uranium One (formed by the amalgamation of Aflease and Canada's Southern Cross Resources), says that a new era for the production of uranium has arrived owing to factors such as those above.
Froneman is currently overseas briefing prospective investors about Uranium One in the hope that it will attract around $65m (R400m) in new capital. The money will be used to develop the Dominion Reefs deposits near Klerksdorp and, Froneman says, that should make the group an important supplier of uranium.
