| According to Chinas Ministry of Land Resources, | | | | In another interview, also published in April, Gene |
| China plans to build up sufficient reserves of uranium | | | | Clark, CEO of TradeTech LLC warned us, In reality, |
| and other minerals, in a new five-year government | | | | the U.S. utilities, which tend to wait longer to |
| plan. The ministry said it would be stockpiling strategic | | | | contract, may be the ones on the losing end because |
| reserves of uranium, copper, aluminum and other key | | | | the Chinese and the Indians will contract early. The |
| minerals because of rising demand for those | | | | implication of current group-think is that the Chinese |
| commodities. The Chinese also wish to avoid supply | | | | and Indians are not going to be able to find enough |
| disruptions by hoarding uranium and other minerals, | | | | uranium for their new plants. But, they are |
| over the next few years. | | | | committing for supplies way out into the future. |
| Until now, youve probably taken for granted a | | | | When the U.S. utilities come to the market, theyre |
| steady, reliable source of electricity. A large part of | | | | going to look around say, Oh blankety- blank, what |
| your dependable energy came about because of the | | | | happened? Wheres the uranium? Theyll be the ones |
| nuclear energy generated by the 103 nuclear reactors | | | | that sat around. I think that is whats going to happen |
| in 30 states. Without a steady supply of uranium to | | | | unless things really change in the way contracting is |
| power those nuclear reactors, the U.S. electrical | | | | done in the United States. |
| transmission network suffers a 20 percent loss. | | | | U.S. utilities have been cautioned, warned and advised |
| Chinas new five-year plan to stockpile uranium had | | | | that the Chinese demand for uranium could very well |
| better be a Wake-Up Call to U.S. utilities. If they | | | | create a serious energy crisis for the U.S. grid. Nuclear |
| missed the import of Chinas announcement, we are | | | | reactors help supply the baseload generation for the |
| all going to be in a heck of lot of trouble before this | | | | U.S. electrical grid. Nuclear power plants provide |
| decade ends. | | | | stability to the electricity transmission network. About |
| Since June 2004, we have warned of supply | | | | one-fifth of electrical generation is derived from |
| disruptions for uranium. David Miller, who has since | | | | nuclear power. Nuclear plants are running at more |
| become President and Chief Operating Officer of | | | | than 89 percent capacity. U.S. utilities are fiddling |
| Strathmore Minerals, argued at the time, In my | | | | around like Nero, who watched Rome burn, hoping |
| opinion, no one has any extra uranium to sell on the | | | | that promises of increased uranium production will |
| spot market. Theres just not excess inventory that | | | | stem the dramatic uranium price rise. |
| people are unloading in the spot market. We | | | | Severe strains in natural gas supplies, combined with |
| interviewed Miller again in November 2005, for an | | | | the ongoing uranium supply squeeze, could very well |
| article entitled, China Demand for Uranium, World | | | | put U.S. consumers on rations for their electricity. |
| Growth in Electricity Demand to Drive Uranium Price | | | | Cant happen, you say? Ask the Brits about how |
| Higher. Miller warned us, China is the future wild card | | | | business was conducted in their country, in late 1973 |
| what they are planning for nuclear is probably the | | | | and early 1974, during the Arab oil embargo crisis. Or |
| most aggressive program in the world. Miller added in | | | | more recently, Californias rolling brownouts. |
| his explanation, All the new production is already | | | | An electrical energy crisis is in the making, while U.S. |
| factored into the future market for uranium. Were | | | | utilities are patiently hoping or praying the price of |
| underwater right now without building one more | | | | uranium stop climbing. UxC President Jeff Combs |
| nuclear power plant. | | | | wasnt kidding when he urged U.S. utilities, during our |
| In mid April, during an interview with Sprott Asset | | | | interview, to support the expansion of (uranium) |
| Management Market Strategist Kevin Bambrough, we | | | | production in the United States. And if you dont let |
| asked him about the Chinese. He answered, Why | | | | your local utility know about the upcoming electrical |
| shouldnt they have strategic uranium reserves to | | | | energy crisis, then perhaps it will be your lights they |
| supply their nuclear reactors? It makes sense to | | | | may someday be turning out. The irony of ironies: All |
| have a good stockpile of uranium considering the | | | | of those sweet anti-nuclear folks in Vermont, who |
| relative cost of nuclear power versus anything else. | | | | depend upon nuclear energy for more than 70 |
| And now, the Chinese plan to build up a strategic | | | | percent of their electricity? Theyll be the first to |
| reserve of uranium for their aggressive nuclear | | | | suffer the most, if U.S. utilities dont respond to |
| program. | | | | Chinas five-year plan. |