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President Barack Obama announced $8.3 billion US in loan guarantees to help Southern Co. construct a pair of reactors in Burke County in the state of Georgia. Obama said the move toward nuclear power had to be made to meet America’s energy needs and reduce greenhouse gases.
These will be the first new U.S. nuclear power plants in nearly three decades, a move Obama says “is only the beginning.” It is widely anticipated that Obama’s budget for the coming year will add $36 billion in new federal loan guarantees for nuclear facilities — on top of $18.5 billion already budgeted but not spent.
Several market analysts including Howard Ruff, long-time financial advisor and founder of the 35 year-old investing newsletter The Ruff Times, are becoming quite bullish on uranium mining stocks.
In the interview Ruff states “Uranium mining interests me because there’s going to be demand. There are enough nuclear plants either under construction or on the drawing boards that there’s only half enough uranium above ground to service their needs.”
PRWeb.com reports uranium market is said to recover in 2010.
According to TradeTech’s President Treva Klingbiel “The psychological effect of decreasing prices led many utilities to relax purchasing plans and turn away attractive offers in the expectation of further price declines. While 2009 was a relatively active year for term contracting, a substantial number of utilities, particularly in the USA, continue to wait in hopes of catching the market at the absolute bottom before securing supplies for the longer term.”
“Buyers are expected to return to the market during the first quarter of 2010 as a number of utilities have indicated they can justify discretionary purchases for inventory at current price levels,” Klingbiel added. In addition, buying from Asia is expected to remain strong as India and China, in particular, forge ahead with plans for expanded nuclear energy programs to meet rising energy demand.
