| According to Chinas Ministry of Land | | | | warned us, In reality, the U.S. utilities, |
| Resources, China plans to build up sufficient | | | | which tend to wait longer to contract, may be |
| reserves of uranium and other minerals, in a | | | | the ones on the losing end because the |
| new five-year government plan. The ministry | | | | Chinese and the Indians will contract early. |
| said it would be stockpiling strategic | | | | The implication of current group-think is |
| reserves of uranium, copper, aluminum and | | | | that the Chinese and Indians are not going to |
| other key minerals because of rising demand | | | | be able to find enough uranium for their new |
| for those commodities. The Chinese also wish | | | | plants. But, they are committing for supplies |
| to avoid supply disruptions by hoarding | | | | way out into the future. When the U.S. |
| uranium and other minerals, over the next few | | | | utilities come to the market, theyre going to |
| years. | | | | look around say, Oh blankety- blank, what |
| | | | happened? Wheres the uranium? Theyll be the |
| Until now, youve probably taken for granted a | | | | ones that sat around. I think that is whats |
| steady, reliable source of electricity. A | | | | going to happen unless things really change |
| large part of your dependable energy came | | | | in the way contracting is done in the United |
| about because of the nuclear energy generated | | | | States. |
| by the 103 nuclear reactors in 30 states. | | | | |
| Without a steady supply of uranium to power | | | | U.S. utilities have been cautioned, warned |
| those nuclear reactors, the U.S. electrical | | | | and advised that the Chinese demand for |
| transmission network suffers a 20 percent | | | | uranium could very well create a serious |
| loss. Chinas new five-year plan to stockpile | | | | energy crisis for the U.S. grid. Nuclear |
| uranium had better be a Wake-Up Call to U.S. | | | | reactors help supply the baseload generation |
| utilities. If they missed the import of | | | | for the U.S. electrical grid. Nuclear power |
| Chinas announcement, we are all going to be | | | | plants provide stability to the electricity |
| in a heck of lot of trouble before this | | | | transmission network. About one-fifth of |
| decade ends. | | | | electrical generation is derived from nuclear |
| | | | power. Nuclear plants are running at more |
| Since June 2004, we have warned of supply | | | | than 89 percent capacity. U.S. utilities are |
| disruptions for uranium. David Miller, who | | | | fiddling around like Nero, who watched Rome |
| has since become President and Chief | | | | burn, hoping that promises of increased |
| Operating Officer of Strathmore Minerals, | | | | uranium production will stem the dramatic |
| argued at the time, In my opinion, no one has | | | | uranium price rise. |
| any extra uranium to sell on the spot market. | | | | |
| Theres just not excess inventory that people | | | | Severe strains in natural gas supplies, |
| are unloading in the spot market. We | | | | combined with the ongoing uranium supply |
| interviewed Miller again in November 2005, | | | | squeeze, could very well put U.S. consumers |
| for an article entitled, China Demand for | | | | on rations for their electricity. Cant |
| Uranium, World Growth in Electricity Demand | | | | happen, you say? Ask the Brits about how |
| to Drive Uranium Price Higher. Miller warned | | | | business was conducted in their country, in |
| us, China is the future wild card what they | | | | late 1973 and early 1974, during the Arab oil |
| are planning for nuclear is probably the most | | | | embargo crisis. Or more recently, Californias |
| aggressive program in the world. Miller added | | | | rolling brownouts. |
| in his explanation, All the new production is | | | | |
| already factored into the future market for | | | | An electrical energy crisis is in the making, |
| uranium. Were underwater right now without | | | | while U.S. utilities are patiently hoping or |
| building one more nuclear power plant. | | | | praying the price of uranium stop climbing. |
| | | | UxC President Jeff Combs wasnt kidding when |
| In mid April, during an interview with Sprott | | | | he urged U.S. utilities, during our |
| Asset Management Market Strategist Kevin | | | | interview, to support the expansion of |
| Bambrough, we asked him about the Chinese. He | | | | (uranium) production in the United States. |
| answered, Why shouldnt they have strategic | | | | And if you dont let your local utility know |
| uranium reserves to supply their nuclear | | | | about the upcoming electrical energy crisis, |
| reactors? It makes sense to have a good | | | | then perhaps it will be your lights they may |
| stockpile of uranium considering the relative | | | | someday be turning out. The irony of ironies: |
| cost of nuclear power versus anything else. | | | | All of those sweet anti-nuclear folks in |
| And now, the Chinese plan to build up a | | | | Vermont, who depend upon nuclear energy for |
| strategic reserve of uranium for their | | | | more than 70 percent of their electricity? |
| aggressive nuclear program. | | | | Theyll be the first to suffer the most, if |
| | | | U.S. utilities dont respond to Chinas |
| In another interview, also published in | | | | five-year plan. |
| April, Gene Clark, CEO of TradeTech LLC | | | | |