“2016: We have to have supply in the market or the lights will gradually go out in the nuclear system,” said Thomas Drolet, the president of Drolet & Associates Energy Services, during a presentation at Cambridge House’s Vancouver Resource Investment conference on Monday.

A uranium supply crunch is widely anticipated to hit the nuclear industry starting next year as Cold War era sources of uranium dry up. To illustrate the severity of the shortage that the nuclear industry faces, Drolet highlighted 2010 uranium production from mining - 118 million pounds - versus consumption: 190 million pounds.

“You can do the delta difference yourself,” Drolet said, referring to how much of a supply gap miners will have to make up for in coming years.

That uranium is “going to have to come from somewhere,” he said.

The Fukushima nuclear disaster in Japan, Drolet argued, only delayed the onset of the coming pinch on uranium supply. But even in his “downside” analysis the uranium deficit still comes by 2015. http://www.mineweb.com/mineweb/view/mineweb/en/page72103?oid=143915&sn=Detail&pid=102055

About Thomas Drolet

Nuclear Power Generation Post-Fukushima (Tom Drolet) pdf

We have updated our ASX listed companies sorted by resource size. There has been a fair amount of movement. One of the bigger surprises is one of our very small ($24m) by market cap companies moving into second position below BHP. This could be one of the world’s cheapest very large resources, in terms of market cap to resource size. It certainly is in an interesting position in regard to our ASX plays. Note that the data is from 3Q 2011. Visit http://www.australianuranium.com.au/Australian-Uranium-Stocks-by-Resource.html to find out more

December 9, 2011: Extract Resources Ltd (ASX/TSX/NSX: EXT) (”Extract” or “the Company”) notes the announcement by Taurus Mineral Limited (“Taurus”), an entity
owned by CGNPC Uranium Resources Co., Ltd. (“CGNPC-URC”) and The China-Africa Development Fund (“CADFund”), of a recommended cash offer for Kalahari Minerals plc (”Kalahari”), Extract’s 42.74% shareholder, at a price of 243.55 pence per Kalahari share (the “Kalahari Offer”). The Taurus announcement includes a proposal to make a downstream cash offer to Extract shareholders of A$8.65 per Extract share (the “Extract Offer”), if Taurus receives acceptances of the Kalahari Offer in respect of more than 50% of the voting rights in Kalahari.

Update: 11/1/2012

Update Regarding Proposed Downstream Offer for Extract Resources
January 11, 2012: Extract Resources Ltd (ASX/TSX/NSX: EXT) (”Extract” or the
“Company”) has been informed that the Namibian Competition Commission (“NCC”) has
approved without conditions the possible acquisition of control of Extract by Taurus
Mineral Limited (“Taurus”), an entity owned by CGNPC Uranium Resources Co., Ltd.
(“CGNPC-URC”) and the China-Africa Development Fund (“CADFund”).
NCC consent to the possible change of control of Extract is a condition of the Taurus offer
to Kalahari shareholders (the “Kalahari Offer”), as set out in the offer document posted to
Kalahari shareholders on January 5, 2012.
Taurus has been granted relief by the Australian Securities and Investments Commission
(“ASIC”) to acquire an interest of more than 20% of Extract’s shares provided that, among
other conditions, Taurus makes a downstream offer for Extract (the “Proposed Extract
Offer”). Taurus is required to dispatch offer documentation to Extract shareholders within
four weeks of Taurus having received acceptances of the Kalahari Offer in respect of
more than 50% of the voting rights in Kalahari. The Proposed Extract Offer will only be
conditional upon Taurus becoming unconditionally entitled to shares carrying more than
50% of the voting rights in Kalahari, and standard prescribed occurrences as set out in the
Corporations Act not having occurred.
Extract’s Independent Directors are continuing to review all available opportunities to
maximise shareholder value, and intend to make a recommendation in relation to the
Proposed Extract Offer if and when such an offer is made.

If you have read my earlier posts re GGG you’ll know that once GGG comes on line the world’s Rare Earths and in particular the Heavy Rare Earths future supply characteristics will be changed from deficit to surplus. (Market cap $220m)

Today’s announcement by GGG:

“Greenland Minerals and Energy Ltd (”GMEL” or “the Company”) is pleased to announce that the government of Greenland has amended the Company?s exploration license (EL 2010/02) covering the Kvanefjeld multi-element project such that it is now inclusive of uranium.

This license covers the northern Ilimaussaq complex and includes the world-class Kvanefjeld resource, in addition to emerging satellite deposits Zones 2 & Zone 3 (Table 1). Under the licensing framework in Greenland, the licensee maintains the right to apply for an exploitation (mining) license for all exploitable elements listed on the exploration license. Importantly EL 2010/02 now includes radioactive materials, providing the company with the clear right to apply for the exploitation of radioactive elements along with all other exploitable elements. The granting of an exploitation license will be dependent on establishing an environmentally and socially sustainable development scenario that is economically robust.”

indicates that Greenland Energy and Minerals is now substantially de-risked.

Follow this link to my www.australian-shares.com blog to a list of my earlier posts re GGG.

Game on!

About Australian Thorium ASX listed companies with Thorium Resources

It is likely significant that “Government frontbencher Stephen Smith has defended Prime Minister Julia Gillard for not consulting with cabinet before announcing her plans to overturn a ban on uranium sales to India.” (read full article) as Stephen Smith is being actively touted as being Gillard’s replacement if there is to be a change in the Labor party’s leadership.

Those of us that still are invested in the sector should take some comfort from Smith’s comments. However several of the state Labor party leaders have divergent views and with a “green” senate it looks unlikely that we will see new uranium mines inside Australia’s borders in the near future.

Hence our overseas ASX listed uranium plays probably still offer the best chances.

I hold AEE, EXT and GGG. Click on them to see why.

‘‘potentially very dangerous uses … We don’t want to be seen to be part of that effort,’’ she said.

Read more: http://www.theage.com.au/business/uranium-ban-in-qld-will-stay-bligh-20111115-1ng8y.html#ixzz1dmXvtBwC

I worry about who Anna Bligh gets her energy advice from.

This will be very interesting! See my post below.

“Extract Resources Ltd (the Company) has requested a trading halt for trading in securities of the Company on the ASX from pre-open on 10 November 2011, until the earlier of the commencement of trading on 14 November 2011 or when an announcement is released to the market relating to the discussions between CGNPC Uranium Resources Co Ltd and Kalahari Minerals Plc, Extract’s 42.74% shareholder. The Company has requested the trading halt pending the expected release of an announcement by Kalahari on the London Stock Exchange.”

It seems that the market has missed the significance of GGG’s latest ASX release.

lately there has been a lot of commentary surrounding the impending surplus supply of REEs with several thousand projects around the world. The surplus is said to be coming in the light REEs whereas the heavy REEs are going towards critical supply shortage.

****And this is what the market seems to have missed:

CEO Rod McIllree
The resource base at Kvanefjeld is already very large, and initial resource calculations are due out for two new satellite deposits in early 2012. Given the advantage of having a very large resource base, our focus has been on establishing the most efficient and cost-effective way to process the material. We’ve also been conscious of identifying a development scenario with the least market risk.

The breakthrough in beneficiation provides a clear path to a more efficient operation, and also brings about greater flexibility: treating a higher-grade, lower-mass mineral concentrate opens up more leaching options than were previously available.

****We’re aiming for a primary leach stage that effectively leaches uranium and heavy REEs, and we’ve identified a number of solution chemistries to do this.

Under this scenario light REEs remain with the mineral residue, but in an easily leachable form.

****This would see Kvanefjeld developed as a uranium heavy REE project that also produces a very large light REE-rich stockpile. The stockpile can then be processed independently of the uranium-heavy REE leach circuit. Importantly, this removes the market risk of being dependant on producing, and having to sell a vast volume of light REEs, but leaves us the option of cheaply producing large volumes of light REE product according to demand.

This fits with our view that light REEs won’t retain their current high prices over the mid to long term, but heavy REEs will remain high-value materials of great strategic importance for many years to come. We aim to be a dominant supplier of heavy REEs and a large-scale producer of uranium oxide while retaining the option of cheaply producing a light REE product depending on market demand.

Thus it seems that GGG is positioning itself to become the world’s dominant supplier of heavy rare earths and a major uranium supplier.

I hold GGG.