NewswireToday - /newswire/ -
Sarasota, FL, United States, 2006/10/26 - Uranium guru David Miller, who is also co-author of “Investing in the Great Uranium Bull Market,” predicts recent troubles with uranium mining will force German utilities to pay nearly $100/pound next year to fuel the country’s 17 nuclear reactors..
German residential, commercial and industrial electricity consumers could suffer a double-digit rate hike starting in 2008, according to International Atomic Energy Agency uranium geologist David R. Miller, co-author of “Investing in the Great Uranium Bull Market (StockInterview: 2006). Monday’s announcement of a two-year delay at Cameco’s Cigar Lake uranium mine in Canada was the uranium-equivalent for the oil market to lose Saudi Arabia’s crude oil production – a loss of nearly 10 percent of world uranium consumption. German, U.S. and other world utilities were counting on the Canadian uranium project to supply nuclear fuel for their reactors.
Miller also warned, “Germany’s 17 nuclear reactors may be at risk of a ‘crisis’ fuel shortage between 2008 and 2015, which could also send electricity bills soaring higher.” Nuclear energy provides Germany with about 30 percent of the country’s electrical power. Miller, who also serves in the Wyoming legislature in the U.S., blames 20 years of negligence by American utilities for Germany’s potential nuclear fuel shortage.
“The Russian ‘HEU-LEU deal,’ which expires in 2013, has pressured U.S. utilities to scramble for new uranium supply sources for our 103 reactors,” Miller said. “The disaster at the Cigar Lake uranium mine will now also force Germany’s utilities to search out new sources of uranium supply,” he said. “This could lead to reactor closures if insufficient uranium is mined fast enough.”
Miller will discuss Germany’s problems in “The Great Uranium Shortage” on October 27 at 10:40 A.M. at Rohstoffmesse Frankfurt 2006 being held at Congress Center Messe in Frankfurt. Miller lectures in the “Fantasie Room,” where he will debut the CD version of his new book.
Trouble for the World’s Uranium Miners
To further aggravate the world’s tight supply of uranium, workers at Namibia’s Rossing uranium mine began the third day of a strike for higher pay. Rossing presently supplies more than seven percent of the world’s uranium requirements. Earlier this year, uranium production at Australia’s Ranger mine was lowered because of a cyclone.
Aggressive buying and deal-making by China, Russia, Japan and others locked up future uranium mining production which should further pressure Germany’s utilities. In 2006, uranium mines are only expected to produce about 65 percent of Western World requirements. Germany annually imports about 3800 metric tonnes, mainly from Canada, Australia and Russia.