Australia's ERA former CEO sees no sign of uranium prices easing

SYDNEY (XFN-ASIA) - A former chief executive of Rio Tinto-controlled uranium miner Energy Resources Australia Ltd, Bob Cleary, said strong global demand for uranium as a power plant fuel is set to continue, with no imminent signs to cause any weakening in the current high price for uranium oxide.
Cleary said uranium oxide is currently being quoted around 1.20 usd a pound compared with an average 0.48 usd a pound in 2006.
He made the comments at the annual general meeting of uranium explorer Crossland Uranium Mines Ltd, of which he is chairman.
'Global warming concerns have caused a significant re-think about uranium's role in the world's energy mix,' Cleary told the meeting.
'This re-focus on nuclear, coming after a long period of uranium exploration inactivity and falling international production, has current operators of power plant reactors concerned about securing reactor fuel loads for their immediate needs - and they are paying to do so.'
He said additional reactors under construction or committed for construction in the coming decade and beyond will add to price pressure, making it vital that additional discoveries of uranium are made and brought to production.
Crossland, which listed on the Australian Stock Exchange in April after raising 5.6 mln aud, owns uranium projects in South Australia and The Northern Territory.
(1 usd = 1.22 aud)
bruce.hextall@xfn.com