MOSCOW, May 21 A leading Russian nuclear expert warns record prices for uranium will continue to rise as supply stays tight and demand worldwide booms.
Yevgeny Velikhov, head of the Kurchatov Institute, told reporters at a RIA Novosti news conference that the recent surge in uranium prices "may still grow by another order of magnitude." Uranium has settled at $120 per pound since earlier this month. It was $56 per pound last October and averaged around $10-$15 per pound in the 1980s through 2000.
"The global energy market is very turbulent," Velikhov said. "The uranium price can hit any mark at a time of crisis." While 435 nuclear reactors provide 16 percent of the world's energy demand, another 28 are under construction. Even in the United States, where a new reactor hasn't been licensed since 1978, the Nuclear Regulatory Commission expects applications for around 30 new reactors in coming years.
The low prices depressed the supply of uranium, which is enriched for both nuclear energy and weapons. Jeff Combs, president uranium analysts The Ux Consulting Co., said this reduced investment in exploration and mining uranium.
Accidents and weather-related incidents at mines in Canada and Australia have hurt large projects aimed at bringing more uranium to market.
Meanwhile, Russia, the United States and others are seeking to create a global nuclear fuel market while keeping it from the hands of weapons makers.
uranium isn't $500/lb yet - but inventories running lower -
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