Uranium Exploration (U3O8)

[NYBob]

The world's largest builder of nuclear reactors -

RE: planned to triple its investment in uranium mining
to take advantage of higher prices for the metal
and a revival in nuclear power projects -

Why higher uranium prices ? -

Ex....
Areva has been operating two uranium mines in Niger for 40
years and is the west African country's biggest private
employer -

President Mamadou Tandja has accused it of backing
the MJC in a bid to keep out competition -

Areva has denied the accusations -
and said last week that its contracts with Niamey -
had been renewed -

The row prompted talks at the weekend in Niamey -
between French Cooperation Minister Jean-Marie Bockel -
and Niger officials, including Tandja -

"I'm very satisfied with the exchange I had with President
Tandja on a whole range of subjects including Areva,
where very significant progress has been made towards
overcoming a certain number of points of incomprehension,"
Bockel said on Saturday.

"The fact the contracts were renewed...
shows that a first step has been made and
that things are going in the right direction."

He added:
"It's clear that Areva does not support -
and never has supported the rebellion -

"There may have been the odd gaffe committed -
on the ground -

We must now do everything to ensure there is -
no more ambiguity between Areva and Niger."

Following the meeting between Tandja and Bockel,
Mindaoudou told journalists the revamped contract
with Areva obliges the company to sell -
its uranium at a higher price -

The new price – 40,000 CFA francs, or 60.98 euros (84 dollars)
a kilo – represents a significant increase over the old price
of 27,300 CFA but is still well below -
the current international rate.

The increase, retroactive to January 1, is only valid
until the end of 2007, Mindaoudou said -
late Friday.

In addition, for the first time Niger will be allowed -
to sell directly on its own account 300 tonnes of uranium -
100 this year and 200 in early 2008.

Further negotiations with Areva will determine new prices -
for 2008 and beyond, she said.

Prime Minister Seini Oumarou had earlier criticised -
the sale price of uranium that Areva fixes,
commenting on state television that a kilo currently sells -
for 122,000 CFA francs (186 euros) on -
the international market.

Mindaouodou said that in future Areva would be treated -
like any other mining company in its search -
for new deposits in Niger, which is the world's -
third largest producer of uranium with some -
nine percent of the market.

"If Areva fulfils the conditions" laid down by Niger,
"it will be granted permits, if not, it will not,"
she said. – AFP

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