According to Reuters the U.S. Energy Dept plans to sell 2,000 tonnes of surplus uranium annually 2011-2013.
The sales are said to be scheduled at three monthly intervals and subsequently might push down spot prices.
WASHINGTON (Reuters) – The U.S. Energy Department plans to sell 2,000 tonnes of surplus uranium annually 2011-2013, which could push spot prices lower over the next three years.
The uranium is suitable for nuclear power plants….
I wonder if this will effect our emerging producers like EXT?
I guess Paladin, ERA and our other producers could take a hit as they are selling product over the next few years… but it is a leap to think that it will affect them much and probably shouldn’t impact our emerging producers at all….. unless emotion becomes the driving factor.
Sometimes I wonder at just how dumb the Yanks seem to be. Wouldn’t it be a rational play to store the uranium for a rainy day? But I guess they are so broke this could be the “rainy day”. But they are going to look a bit silly when their overseas oil supplies dwindle and their new found love of CSM and Shale gas starts to whither as gas bubbles into their water courses and side effects from fraccing chemicals start to emerge… but live for the day eh?
We saw the same type of short sighted behavior here in Australia and the UK with the gold reserves sell-offs that cost Australia and the UK billions of dollars…