The spot price of uranium oxide rose 20% after the initial drop in spot prices that immediately followed the Fukushima nuclear incident, evidence of future opportunity in the space, says Donald C. Ewigleben, President, CEO and Director of Uranium Resources, Inc. (URRE).
“There is still an expectation as an industry for future growth in demand despite what has occurred at Fukushima,” Ewigleben said. “China has 13 operating plants today, it has 27 plants under construction, 50 plants planned and another 110 proposed. And they quickly responded the very week after the tsunami saying their plans are unchanged. So we know a significant demand will continue from China.”
URRE is uniquely positioned to benefit from rising global interest in nuclear energy. The company has been producing uranium for 33 years in an environmentally sound way — both open pit and underground — and it is currently developing asset bases in Church Rock and Crownpoint, both in New Mexico.
“We own over 100 million pounds of uranium in the U.S.,” Ewigleben said. “That is the largest-held position in the U.S. and the ninth largest in the world. So we’re very well suited for what we expect to be a return of the nuclear industry and an increase in the demand for uranium.”
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