Replies to post #736 on Resgreen Group International Inc (RGGI)

[eye_ater]

With China sucking up all the U308 supplies could prove to be very lucrative.

Analyst says China's uranium demand could tighten supply
By Tom Stundza -- Purchasing, 5/13/2009 9:54:00 AM
Salida Capital analysts in Toronto believe that a possible 35% increase in the number of nuclear power plants operating worldwide this decade could create a supply shortage in the supply of uranium yellowcake--especially if China decides to stockpile the metal to avert domestic shortages.

Global mine output of uranium is about 107 million lbs annually, says Salida Capital’s analysis, far less than demand of some 168 million lbs, with the shortfall coming from secondary supplies (primarily government inventories). “If we simplistically assume the average new reactor consumes as much fuel as those currently operating, the industry must source an additional 59 million lbs of uranium annually on an ongoing basis—and likely within the next decade,” Salida analysts propose. That would mean a 55% increase in mine output from current levels.

Salida Capital suggests the bulk of future uranium supply growth depends on three key regions of Kazakhstan, Canada (in Saskatchewan) and Australia.