The USA needs URZ

The USA needs URZ

Richard (Rick) Mills
Ahead of the Herd

As a general rule, the most successful man in life is the man who has the best information


Energy Independence

Today, there are some 441 nuclear power reactors operating in 30 countries and nuclear energy provides approximately 15% of the world’s electricity. These 441 reactors, with combined capacity of over 376 Gigawatts (One GWe equals one billion watts or one thousand megawatts), require 69,000 tonnes of uranium oxide (U3O8).

According to the World Nuclear Association, about 58 power reactors are currently being constructed in 14 countries. In all there are over 148 power reactors planned and 331 more proposed. Each GWe of increased capacity will require about 195 tU per year of extra mine production – three times this for the first fuel load. Let's also consider the fact that no one builds a $4 to $6-billion dollar reactor just to watch it go idle. They will order one or perhaps several year’s worth of fuel supply to guarantee it doesn’t.

In 2008, mines supplied 51,600 tonnes of uranium oxide concentrate containing 43,853 tU, which means mining supplied roughly 75% of nuclear utility power requirements. The remaining supply deficit used to be made up from stockpiled uranium held by nuclear power utilities, but their stockpiles are pretty much depleted. Mine production is now primarily supplemented by ex-military material - the Megatons to Megawatts program which ends in 2013 - the Russians have stated that the agreement will not be renewed.

The approximately 104 nuclear power plants operating in the USA today consume about 51 million pounds of uranium fuel per year but the U.S.’s current annual production is only about 4 million pounds per year.

As is the current situation with oil, the USA is highly reliant on foreign sources for its uranium

Richard (Rick) Millsrick@aheadoftheherd.com
www.aheadoftheherd.com


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Richard is host of aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 200 websites, including: Wall Street Journal, SafeHaven, Market Oracle, USAToday, National Post, Stockhouse, Lewrockwell.com, Casey Research, 24hgold, Vancouver Sun, SilverBearCafe, Infomine, Huffington Post, Mineweb, 321Gold, Kitco, Gold-Eagle, The Gold/Energy Reports, Calgary Herald, Resource Investor and Financial Sense.

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