Weekly Reports | Feb 25 2020
Different approaches to nuclear power generation are being taken across the globe.
-Congress to assess US uranium reserve proposal
-US to open first new reactor in 30 years
-France to close its oldest reactors
By Greg Peel
The Trump Administration has allocated US$150m in its proposed 2021 budget for the creation of a national uranium reserve. The budget will need to be approved by Congress, and to that end Congress has requested the Department of Energy identify key challenges in reconstituting uranium mining and conversion in the US.
It is expected the DOE will publish a Request for Information, through which it will seek input on various market, regulatory, technical, financial, and human resource topics. Responses to the ROI are due on March 16.
The US uranium mining and nuclear power generation industries meanwhile remain in a state of flux. However, the country moved closer last week to the completion of its first new reactor in more than 30 years. Southern Co remains confident of meeting the regulatory approved in-service date of November 2021 for Unit 3 at the Vogtle Nuclear Power Plant in Georgia.
Over in France, where the government has a policy of reducing nuclear’s contribution to the country’s power production, Electricite de France has begun the process of closing the two-unit Fessenheim plant – the country’s oldest operating nuclear facility.
Which leaves the developing world to pick up the slack. President Trump is currently in India, where he is expected to sign an agreement that will outline plans for six Westinghouse reactors to be built at Kovvada.
Jogging on the spot
The uranium spot market continues to show a distinct lack of volatility. Industry consultant TradeTech reports five transactions totalling 500,000lbs U3O8 equivalent changed hands last week. TradeTech’s weekly spot price indicator, which fell -US5c the week before, rose US10c last week to US$24.70/lb.
The spot price is down -14% year on year.
New demand emerged in the term uranium market last week, with several US utilities seeking offers. The utilities are considering a range of flexible delivery options with deliveries spanning the 2022 to 2028 time period.
TradeTech’s term price indicators remain at US$28.25/lb (mid) and US$33.00/lb (long).
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
