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