Impact of Germany's Nuclear About Face on Uranium Mining
By Jeb Handwerger Jun 17, 2011 3:50 pm
Major energy consuming countries are still moving forward with nuclear power, putting pressure on uranium supplies while potentially leaving Germany behind.
We see that Germany's decision to forsake their nuclear reactors was a long time coming. This is despite Merkel's statement -- which was misleading -- when she said, "After what was an unimaginable disaster at Fukushima, we had to reconsider the role of nuclear energy." She announced the decision to close all the reactors by 2022 at a news conference in the presence of several of her cabinet ministers.
This is a sharp policy reversal that will make Germany the first major modern industrial nation to abandon nuclear power. Merkel's move is in contrast with the US, China, India, Russia, and many others who are continuing full speed ahead with safe and up to date nuclear power plants.
There are currently 62 modern and efficient power plants being built all over the world including 27 in China, 5 in India, 11 in Russia, and even 2 in Japan. In fact, uranium is fast approaching a supply-demand deficit and a possible shortage in uranium ore.
There are 443 operating reactors, not including new plants coming online, which need over 180 million pounds of uranium annually. The world produces only 130 million pounds per year. Already there is a shortfall of 50 million pounds which is being filled until 2013 by the Russian Highly Enriched Uranium Agreement. The Russians have made it clear that they will not renew this agreement after 2013, as they will need the fuel for their own needs.
Meanwhile, the Nuclear Regulatory Commission which oversees nuclear power in the US has been conducting special investigations into nuclear reactors. The Chairman of the NRC has expressed confidence in the safety of the American Nuclear Reactors and US utilities are purchasing all available supplies of ore.
Additionally the French Prime Minister recently said, "We think nuclear energy is the solution for the future."
We must be aware that the German decision is politically driven. The move to end nuclear power will increase energy prices and endanger German competitiveness.
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