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3/29/2017 by mdc
http://www.economiccalendar.com/2017/03/14/uranium-price-weak-but-miners-movi...
Leia Toovey reports that even as uranium prices remain weak due to a flood of supplies and lower demand, many companies are moving forward with uranium project developments, hoping to capitalize on the eventual rebound in prices.

Greenland is looking to start construction of the world fifth-largest uranium mine and second-biggest rare-earths operation to help diversify its economy and reduce its financial dependence on Denmark. Even though the near-term outlook for uranium demand is weak, Greenland wants to reduce its dependence on a locked Danish subsidy of 3.2 billion DKK (about $500 million), which constitutes about half of its budget. The mine would have an annual processing capacity of 3 million tons a year.

More immediate, Vimy Resources recently cleared the last environmental hurdle needed to be scaled before it can build its Mulga Rock uranium mine. The Australian mine will be a major producer, according to its feasibility study, producing 1,360 metric tons of uranium oxide (U3O8) per year. For comparison, Australian Olympic Dam mine, the largest uranium deposit in the world, produces 4,500 metric tons of U3O8 per year.

Spot uranium prices, currently sitting around $25.50 per lb, according to prices compiled by UxC, remain weak with the market still suffering in the aftermath of the Fukushima tsunami damage. Still, prices have rebounded since last since early winter when they fell to around $17 per lb.

Miners and analysts are maintaining their position that over the long-run, uranium prices will rally again as demand will increase. By diligently exploring and expanding reserves right now, these miners could position themselves to benefit from the expected rapid rise in prices and mining resurgence.



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