News of the imminent signing of an accord with China sends uranium stocks soaring, according to a report in the Herald Sun, an Australian newspaper.
The news coincided with a Resource Capital Research report predicting that Chinese investment in Australia's more promising uranium exploration juniors was likely to follow such an agreeement.
"Security of uranium supply is paramount to China's expanding nuclear power industry, and cost is a secondary issue," wrote RCR analyst John Wilson, who also predicted that the yellowcake spot price was likely to rise from $US40 per lb at present to $US58 per lb by June next year.
"As such, the junior end of the market -- particularly companies with code-compliant resources -- will continue to receive a high degree of interest.
"We understand that many companies have already commenced dialogue with Chinese investors."
China plans to boost nuclear energy fourfold by 2020, building 28 nuclear power plants to meet rising energy demand, according to the World Nuclear Association.
Mr Howard said China's Premier Wen Jiabao could sign the uranium export agreement when he visits next week, paving the way for direct Chinese investment in the sector.
"The discussions with the Chinese have been going on for some time. We have made very good progress," Mr Howard said in Canberra yesterday.
"It's possible the discussions could be satisfactorily concluded so that something could be said or signed when the Chinese Premier visits Australia next week."
He said an Australian delegation would also travel to India to discuss the uranium treaty that country signed with the United States earlier this month.
Australia, which has the world's largest known uranium reserves, started talks with China last year to ensure that exports would be used only for peaceful purposes.
While shares in leading Rio Tinto-controlled yellowcake producer ERA jumped 45 or 3.4 per cent to $13.75, the main price action was at the exploration end of the sector.
The news coincided with a Resource Capital Research report predicting that Chinese investment in Australia's more promising uranium exploration juniors was likely to follow such an agreeement.
"Security of uranium supply is paramount to China's expanding nuclear power industry, and cost is a secondary issue," wrote RCR analyst John Wilson, who also predicted that the yellowcake spot price was likely to rise from $US40 per lb at present to $US58 per lb by June next year.
"As such, the junior end of the market -- particularly companies with code-compliant resources -- will continue to receive a high degree of interest.
"We understand that many companies have already commenced dialogue with Chinese investors."
China plans to boost nuclear energy fourfold by 2020, building 28 nuclear power plants to meet rising energy demand, according to the World Nuclear Association.
Mr Howard said China's Premier Wen Jiabao could sign the uranium export agreement when he visits next week, paving the way for direct Chinese investment in the sector.
"The discussions with the Chinese have been going on for some time. We have made very good progress," Mr Howard said in Canberra yesterday.
"It's possible the discussions could be satisfactorily concluded so that something could be said or signed when the Chinese Premier visits Australia next week."
He said an Australian delegation would also travel to India to discuss the uranium treaty that country signed with the United States earlier this month.
Australia, which has the world's largest known uranium reserves, started talks with China last year to ensure that exports would be used only for peaceful purposes.
While shares in leading Rio Tinto-controlled yellowcake producer ERA jumped 45 or 3.4 per cent to $13.75, the main price action was at the exploration end of the sector.
