ERA Mine Flooding Further Tightens Uranium Supply

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While Cigar Lake effectively removed uranium mining supply in 2008, ERA's 'force majeure' announcement withdrew supply anticipated for this year.

After Cameco Corp's (CCJ) Cigar Lake flood at the company's northern Saskatchewan uranium mining project rattled analysts and utilities who previously expected sufficient uranium would be available to meet the needs of nuclear utilities, along came another mine flooding in Australia. The March 7th announcement by Energy Resources of Australia was different. While Cigar Lake effectively removed uranium mining supply in 2008, ERA's 'force majeure' announcement withdrew supply anticipated for this year.

Even before the force majeure, TradeTech's Nuclear Market Review was inclined to increase the consulting service's weekly spot uranium price indicator. Flooding at ERA's Ranger mining operations confirmed the already very tight uranium supply would get much tighter. And it will cost delinquent utilities who did not stockpile sufficient uranium to meet their reactor requirements to pay more for new uranium supply they may have need of.

Presently at US$90/pound, it appears a sure thing that spot uranium would rise past the century mark and perhaps gallop higher...

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