The Future of Nuclear Power and Uranium

“Lately, I’ve been talking with people in the nuclear business,” says Byron King, “from uranium miners to reactor designers to government minders and check signers. Everything I’ve heard leads me to believe that 2010 will be a good year -- finally -- for the nuclear industry…

“Here are the nuclear numbers: There are 436 operating reactors in 30 countries around the world, 104 of which are in the U.S. These reactors produce just shy of 15% of the world’s electricity. The best data are that 50 reactors are currently under construction. There are 137 more being formally planned, and another 295 reported proposals seeking construction approval.

“Right away, it’s clear there are a lot of reactors out there, with something like 400 more on the way. So where will the world nuclear industry obtain the uranium fuel for all these new reactors? That’s a darn good question.

“Just in the U.S., annual uranium use for the nuclear power industry is about 55 million pounds. The U.S. produces less than 4 million pounds of this fuel -- about 7% -- and imports the rest.

“But despite the large U.S. demand for uranium imports, the world uranium mining industry lacks adequate capacity to meet demand. A large amount of the nuclear fuel imported into the United States comes from decommissioned nuclear warheads from Russia. The warheads trace their origins back to the Soviet Union.

“If you thought the U.S. had a problem with imported oil, now you know that there’s an issue with uranium fuel as well. Of course, I’m not the only one who knows this. It’s a national security issue, and I can tell you that things are about to change in a very big way… The nuclear industry is about to experience a breakout, and it’s going to be a major investment opportunity in which we can pretty much get in at the bottom of a down market.”