Published on Wednesday February 09 2011
While some market participants withdrew temporarily from the uranium spot market earlier in the week due to the steep price increases, they returned in the early days of February.
As a result, the spot price for one pound of uranium oxide gained US$0.75, reaching US$73.00/lb and five transactions were concluded in the week, according to TradeTech.
This price was held until February 7, when the Ux Consulting Company reported the same price as unchanged from the previous week.
However, near-term supply remains extremely thin and the timing of deliveries remains an issue.
Meanwhile, Cameco Corp announced plans to buy uranium produced in Finland. It signed two agreements to buy output from the Sotkamo nickel-zinc mine in the east of the country.
The mine’s owner, Talvivaara Mining Co expects to produce around 900,000lb of uranium annually once it ramps up to full production. Construction of the uranium extraction circuit is scheduled for completion in 2012 and Cameco will buy uranium concentrate from the mine through December 31, 2027.
“Cameco is already a supplier of uranium fuel to generate clean electricity for Finnish utilities and their customers,” stated Cameco’s CEO Jerry Grandey. “Cameco’s strategic goal is to double uranium production from our existing assets by 2018.
Our deal with Talvivaara will provide Cameco with an additional source of uranium supply over and above what we expect to produce from our properties.”