japan unveils plan to phase out nuclear power, page-2

On the surface of it Weg, seems a major issue - but the CEO of ERA is not too concerned - as follows (in this article a couple of days ago):

"ENERGY Resources of Australia Ltd (ERA) says the shelving of the Olympic Dam expansion and the high costs for Japan to dump nuclear power should see uranium prices rebound strongly.

With uranium spot prices hovering around $US48/lb, well down from highs of around $US140/lb a few years ago, ERA made a net loss in the first half of 2012 of $59.9 million.

The price of uranium has sunk partly in response to Japan's plans to reduce dependency on nuclear power in the wake of the Fukushima disaster last year.

Local producers including ERA have also been hit by a relatively strong Australian dollar, which has reduced earnings.

But ERA chief executive Rob Atkinson said the growing Chinese market will help support demand.

"China is going to be a lot bigger than Japan ever was with nuclear power," he said.

"I also think it is premature to suggest that Japan is going to be able to survive or afford moving forward without nuclear power.

"There is a difference between wanting to do something and being able to afford it," he added.

He said the decision by mining giant BHP Billiton Ltd to shelve its $US30 billion ($A28.8 billion) expansion plans for the Olympic Dam copper/uranium mine should also support higher prices.

"With that not going ahead where is the uranium ore going to come from?" Mr Atkinson said.

"Over the next three to four years we are expecting to see some substantial increase in uranium prices," he said

http://www.heraldsun.com.au/news/breaking-news/era-boss-talks-up-uranium-prices/story-e6frf7kf-1226473498628