Uranium strength to continue

The strong global demand for uranium as a power plant fuel is set to continue, with no imminent signs to cause any weakening in the current high price, according to the Chairman of Crossland Uranium Mines, Bob Cleary. Cleary – a former Chief Executive of Energy Resources of Australia (ERA) and operations manager of the Ranger uranium mine in the Northern Territory – was addressing shareholders at Crossland’s first annual meeting as an ASX-listed company (Code: CUX).

“Global warming concerns have caused a significant re-think about uranium’s role in the world’s energy mix,” he told the meeting. “Most developed or developing countries realise that in order to meet greenhouse commitments without significantly reducing their people’s standard of living, nuclear will make up some portion of their energy needs. This re-focus on nuclear, coming after a long period of uranium exploration inactivity and falling international production, has current operators of power plant reactors concerned about securing reactor fuel loads for their immediate needs – and they are paying  to do so.

“The additional reactors under construction or committed for construction in the coming decade and beyond will only add to this pressure, so it is vital that additional discoveries of uranium are made and brought to production. However, the lag between initial discovery and product out the gate can be seven years or more, so being funded to accelerate exploration activities if and when an exciting result comes from our field teams will position Crossland very well.

“Crossland has been most fortunate in the timing of its tenement acquisitions and the listing on the ASX. U3O8 has just reached a selling price of $120/lb, and there is nothing on the horizon to dampen the strong market demand for the power plant fuel.”

Detailed exploration programmes have been drawn up for Crossland’s three uranium areas in Australia, with specialized equipment to get the most from its activities either delivered or ordered, and ready to commence detailed aerial geophysical survey work on its Kalabity prospect in South Australia’s Curnamona province in the next few days.