Canadian uranium producers (URA) can now compete with Kazakhstan, Australia and Russia to sell uranium to China. The fast growing nuclear industry has never been open to China and will create a boom in the Athabasca Basin for uranium explorers.
Commodities have a long and storied history of boom/bust/boom, with supply and demand alternately racing past each other as the lag times for developing new supply assure too much at some point and too little at others.
Nuclear power has been a hot topic recently. And as a result, the price action of its input commodity has been quite schizophrenic. Investors and speculators are in a state of great wonderment over what to expect from this intriguing mineral.
Thorium as nuclear fuel is clean and safe and offers significant advantages over uranium. The technology for several types of thorium reactors is proven but still must be developed on a commercial scale.
Concerns about climate change, carbon footprints, energy security and the rising cost of fossil fuels spurred a revival of interest in nuclear power generation in early 2010 and a global civil nuclear renaissance but it derailed with Fukushima-Daiichi.
Increasingly we see countries ensuring their own industries have first rights to internally produced commodities. If any country is to end dependence on foreign supplied fossil fuels and reduce its carbon footprint it will have to develop uranium.
Accessing a sustainable, and secure, supply of raw materials is going to become the number one priority for all countries. First rights of access to internally produced commodities and such privileged access from other countries will be sought.