Japan Turns Back On Nuclear Reactors: Could This Be A Boost For Uranium Miners?

Japan’s devastating disasters last year derailed some growth in the nuclear industry world-wide, but demand for uranium is poised to strengthen after the nation that fed doubts over safety approved its first restart of nuclear reactors since the catastrophe.

“Stealthily … developments in the nuclear industry are moving ahead,” said Jeb Handwerger, a natural-resource analyst and editor of GoldStockTrades.com. “Homage was paid to Fukushima,” but it did not deter companies in the nuclear power industry “from continuing the development of nuclear energy.”

...The 1993 “Megatons to Megawatts” agreement also expires at the end of 2013 and that will likely cut into supplies, analysts said...

“Were it not for the Russians supplying uranium to the U.S as part of the ‘Megatons to Megawatts’ arrangement … we would be experiencing major power failures,” said Handwerger of GoldStockTrades.com, which offers a newsletter that covers small-cap uranium equities.

“Megatons to Megawatts’ refers to commitments by the U.S. and Russia to convert nuclear weapons into fuel for electricity production, according to the WNA...

“Mining supply must expand to make up for this loss,” he said...

There’s also opportunity in uranium stocks, such as Uranerz Energy Corp. URZ +5.19%which is “strategically located in the Powder River Basin in Wyoming, surrounded by the big boys,” Uranium One Inc. CA:UUU +0.39%  and Cameco Corp. CCJ +1.87%  CA:CCO +1.63% , said Handwerger, who is long URZ.

Read the full article by CBS Marketwatch by clicking here...

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