Opportunities Abound for Australia's Uranium Industry as Japan Restarts Nuclear Reactors

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Researched by Industrial Info Resources Australia (Perth, Australia)--Japan's nuclear reactors have remained offline since the Fukushima disaster hit the country in March 2011, after a massive earthquake triggered a devastating tsunami. Since then, Japan has been relying on its own thermal power plants to replace the lost nuclear capacity that powered the country for so long. Wary of the economic risks and environmental effects associated with an over reliance on fossil fuels, the new pro-nuclear government has released a national energy policy that will resume operations of nuclear plants throughout the country, providing they satisfy tough regulatory standards and safety practices. This new strategy could provide a variety of opportunities for Australia if plants are restarted to provide for new uranium demands.

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The restart of Japanese reactors will be key to a turnaround in the uranium market, particularly when more than 72 nuclear reactors are under construction worldwide. It is predicted that slumping demand will reverse and increase in the coming years. Plans to restart at least two of Japan's 48 nuclear reactors could have positive implications for the uranium export industry in Australia as prices potentially climb. China and India will also be major importers of the commodity within the next decade as their economies continue to expand and become more reliant on nuclear power for their energy requirements.

It can be expected that the eight uranium ore-related projects in Oceania will remain on hold until market conditions change. However, with at least nine new projects planned for completion within the medium term, a change in commodity prices will see the Australian uranium industry take off to meet the demand that a growing reliance on nuclear energy in Asia will bring to the global marketplace.

Cameco Corporation Limited (TSE:CCO) (Saskatchewan, Canada) seems to be preparing for the approaching global rise in uranium ore commodity prices, with its massive Yeelirrie mine, currently in planning. The Western Australian site is estimated to cost the company over AU$300 million (US$292 million) and will produce approximately 3,500 tons of uranium concentrate per year for export. Similarly, Lagoon Creek Resources Limited, a subsidiary of Laramide Resources Limited (TSX:LAM) (Toronto, Canada) plans to construct its own Westmoreland uranium mine site, once market conditions prove the project economically viable.

Although analysts maintain that South Australia is cementing its place as the capital of uranium mining in the country, as a result of its large reserves and high grade, Western Australia still dominates the active project count with more than nine uranium-related projects, which are ready to progress if the downturn in uranium prices takes a predicted turn for the best. However, until that time, operational plants may continue to lose money in similar fashion to the newly operational Four Mile uranium mine in South Australia.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.