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Australia's largest producer says long term demand strong

March 20th, 2009

Long-term uranium demand strong: ERA
20/03/2009 4:27:01 PM

Energy Resources Australia Ltd (ERA) says long-term demand for uranium is likely to remain strong with China to drive demand growth in the next decade.

The yellow cake miner also says it is well positioned to take advantage of the robust market for uranium with projects in 2009 to increase production capability.

Uranium has not been subject to as severe a downturn in demand and prices that has beset the market for many other mineral commodities, ERA says in its annual report released on Friday.

“As market prices have risen, the long term fundamentals for the uranium market remains strong,” ERA said.

“Overall, the supply and demand balance in uranium markets point to sustained higher prices in the medium term,” the company said.

ERA concluded its first sale of uranium to China last year and says that country will drive demand growth for its product.

“The most significant growth in demand for uranium in the next decade will come from China.”