Since the start of 2006 the price of uranium yellowcake, the raw material for nuclear fission, has doubled to $72.50 per pound. Analysts are predicting that the price could go even higher in 2007, hitting $100 per pound.
This has led to a vast increase in the number of uranium miners and explorers hoping to cash in on the price rises.
According to analysts the number of “junior” uranium miners and explorers has increased tenfold to at least 200 in recent years.
The price rises are the result of nuclear power returning to centre stage in the debate over how to move to non-carbon-based fuels.
A number of countries are expecting to expand their nuclear generating capacity and there are an estimated 251 reactors in planning or under construction around the world.
The price rises have been exacerbated by a shortage of yellowcake uranium. This shortfall has its roots in the post-Chernobyl period when new reactors, and uranium mines, were not commissioned.
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