There has been good news from Japan but bad news from Kazakhstan for the uranium industry this month
There has been good news from Japan but bad news from Kazakhstan for the uranium industry this month. The Japanese cabinet is set to review a proposal calling for nuclear power to be an important baseload electricity source. All the nuclear power plants were closed after the Fukushima nuclear power plant failures in 2011. The cabinet review due to be completed in March would open the way for plants to start producing again. Kazakhstan has accounted for around 40% of the world's uranium supply. A 19% devaluation earlier this month in the Kazakhstan Tenge was an overt attempt by the government to restore profitability. In lowering the exchange rate, the government has given its uranium suppliers an effective 19% revenue boost not available to companies operating in other currencies and removed pressures on them to help rebalance the market.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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