U.S. Energy Dept to sell surplus uranium
WASHINGTON |
WASHINGTON (Reuters) - The U.S. Energy Department plans to sell 2,000 tonnes of surplus uranium annually 2011-2013, which could push spot prices lower over the next three years.
The department announced late on Wednesday the sales will take place every three months, with no more than 450 metric tons put on the market per quarter.
The uranium, which can be processed as fuel for nuclear power plants, will help cover the cost of cleaning up the Portsmouth uranium enrichment plant in Ohio.
Energy Secretary Steven Chu approved the transfers after he determined the sales would not hurt domestic uranium producers, the department said. U.S. uranium production rose 14 percent last year to 4.2 million pounds.
However, an analysis prepared for the department concluded that the average spot price for uranium could fall 4.9 to 8.9 percent during the period from the November 30, 2010 spot price of $60.25 per pound. The current spot price for uranium is near $70 a pound.
The Energy Department built up an inventory of about 58,000 tonnes of natural uranium for military use during the Cold War and has been selling the stocks gradually over the past 25 years.
(Reporting by Tom Doggett; editing by Sofina Mirza-Reid)
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Like rare earths, the US used to be the greatest producer of uranium on earths but since our laboring days of the 20th century, the US currently produces less than 5% of the world’s supply (while consuming 20%). The world is powering itself by supplementing a production shortfall with old military stockpiles as mining is not cost effective in most areas with the prices we saw after the crash of the peak price which was only slightly above the inflation adjusted 1980 high of roughly $120.
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