SYDNEY: Energy Resources of Australia, the uranium producer controlled by Rio Tinto Group, said the global financial crisis created a slump in new mine development that may lead to improved prices for the nuclear fuel.
"The supply-demand fundamentals point to the likelihood of stronger prices in the longer term," Energy Resources said yesterday in a statement.
"Despite the challenging economic climate, global demand for uranium is still expected to grow significantly in the next decade."
Energy Resources, which sells uranium to power utilities in Asia, Europe and North America, produces about a 10th of the world's mined uranium.
It said it was looking toward strong growth in demand from China, to which it began shipments in 2008.
"Fifty-five new units are under construction around the world, 20 of which are located in China, with over 100 more planned over the next decade," the company said.
- BLOOMBERG
Recession helps prices
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