Uranium May Spike On Geopolitical Tensions
Jeb Handwerger | Jan 31, 2013 01:49PM ET
Keep a close eye on Al Qaeda in Africa. France is sending Special Forces into Niger to protect their uranium sources controlled by state-owned Areva. France is concerned that the fight in neighboring Mali may threaten neighboring Niger, which has been a huge producer of uranium for 50 years.
France is dependent on this uranium as nuclear provides over 75% of their electricity. The threat of Al Qaeda in the region is rising and uranium production is being threatened from terrorist groups.
The terrorist groups already invaded a gas plant in Algeria and France is especially concerned about Niger where AREVA has a huge uranium production base.
These geopolitical concerns could cause a price spike and cause the major uranium producers to acquire uranium assets in friendlier jurisdictions.
Already uranium is in a supply shortfall, which could be exacerbated by the ending of the Russian Megatons-Megawatts Program in 2013, which could take 25 million lbs off of the market.
Technically the uranium price is breaking above the 200 day moving average indicating the Post-Fukushima downtrend may be ending, which I clicking here .
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