Increasing demand for power has driven uranium prices from $7.50 lb in 2002 to $85.00 lb today. Nuclear power accounts for approximately 18% of the world's electricity. Currently, about 440 nuclear power reactors are operational worldwide with 31 reactors under construction in 11 countries. The International Atomic Energy Agency indicates an additional 60-70 new reactors could be completed by 2020. China and India alone are constructing and/or planning about 70 new plants. Another positive factor is that existing nuclear plants are upgrading capacity and extending operational life up to 50%.
Some of the more important factors leading to increased demand for uranium has been an improving acceptance of nuclear energy and a demand for safer, cleaner energy instead of fossil fuels and the resultant green house gas effects.
Demands for uranium are gradually exceeding supply and an imbalance in supply is likely to maintain an upward bias on the price. Experts are generally forecasting spot prices in the future to go as high as US$100.00 lb.
Copyright © 2006 Anglo Canadian Uranium Corp. All Rights Reserved.