| According to China's Ministry of Land Resources, | | | | CEO of TradeTech LLC warned us, "In reality, the U.S. |
| China plans to build up "sufficient reserves" of uranium | | | | utilities, which tend to wait longer to contract, may be |
| and other minerals, in a new five-year government | | | | the ones on the losing end because the Chinese and |
| plan. The ministry said it would be stockpiling strategic | | | | the Indians will contract early. The implication of current |
| reserves of uranium, copper, aluminum and other key | | | | group-think is that the Chinese and Indians are not |
| minerals because of rising demand for those | | | | going to be able to find enough uranium for their new |
| commodities. The Chinese also wish to avoid supply | | | | plants. But, they are committing for supplies way out |
| disruptions by hoarding uranium and other minerals, | | | | into the future. When the U.S. utilities come to the |
| over the next few years. | | | | market, they're going to look around say, 'Oh blankety- |
| Until now, you've probably taken for granted a steady, | | | | blank, what happened? Where's the uranium?' They'll |
| reliable source of electricity. A large part of your | | | | be the ones that sat around. I think that is what's going |
| dependable energy came about because of the | | | | to happen unless things really change in the way |
| nuclear energy generated by the 103 nuclear reactors | | | | contracting is done in the United States." |
| in 30 states. Without a steady supply of uranium to | | | | U.S. utilities have been cautioned, warned and advised |
| power those nuclear reactors, the U.S. electrical | | | | that the Chinese demand for uranium could very well |
| transmission network suffers a 20 percent loss. | | | | create a serious energy crisis for the U.S. grid. Nuclear |
| China's new five-year plan to stockpile uranium had | | | | reactors help supply the baseload generation for the |
| better be a Wake-Up Call to U.S. utilities. If they missed | | | | U.S. electrical grid. Nuclear power plants provide stability |
| the import of China's announcement, we are all going | | | | to the electricity transmission network. About one-fifth |
| to be in a heck of lot of trouble before this decade | | | | of electrical generation is derived from nuclear power. |
| ends. | | | | Nuclear plants are running at more than 89 percent |
| Since June 2004, we have warned of supply | | | | capacity. U.S. utilities are fiddling around like Nero, who |
| disruptions for uranium. David Miller, who has since | | | | watched Rome burn, hoping that promises of |
| become President and Chief Operating Officer of | | | | increased uranium production will stem the dramatic |
| Strathmore Minerals, argued at the time, "In my opinion, | | | | uranium price rise. |
| no one has any extra uranium to sell on the spot | | | | Severe strains in natural gas supplies, combined with |
| market. There's just not excess inventory that people | | | | the ongoing uranium supply squeeze, could very well |
| are unloading in the spot market." We interviewed Miller | | | | put U.S. consumers on rations for their electricity. Can't |
| again in November 2005, for an article entitled, "China | | | | happen, you say? Ask the Brits about how business |
| Demand for Uranium, World Growth in Electricity | | | | was conducted in their country, in late 1973 and early |
| Demand to Drive Uranium Price Higher." Miller warned | | | | 1974, during the Arab oil embargo crisis. Or more |
| us, "China is the future wild card... what they are | | | | recently, California's rolling brownouts. |
| planning for nuclear is probably the most aggressive | | | | An electrical energy crisis is in the making, while U.S. |
| program in the world." Miller added in his explanation, | | | | utilities are patiently hoping or praying the price of |
| "All the new production is already factored into the | | | | uranium stop climbing. UxC President Jeff Combs |
| future market for uranium. We're underwater right now | | | | wasn't kidding when he urged U.S. utilities, during our |
| without building one more nuclear power plant." | | | | interview, to "support the expansion of (uranium) |
| In mid April, during an interview with Sprott Asset | | | | production in the United States." And if you don't let |
| Management Market Strategist Kevin Bambrough, we | | | | your local utility know about the upcoming electrical |
| asked him about the Chinese. He answered, "Why | | | | energy crisis, then perhaps it will be your lights they |
| shouldn't they have strategic uranium reserves to | | | | may someday be turning out. The irony of ironies: All |
| supply their nuclear reactors? It makes sense to have | | | | of those sweet anti-nuclear folks in Vermont, who |
| a good stockpile of uranium considering the relative | | | | depend upon nuclear energy for more than 70 percent |
| cost of nuclear power versus anything else." And now, | | | | of their electricity? They'll be the first to suffer the |
| the Chinese plan to build up a strategic reserve of | | | | most, if U.S. utilities don't respond to China's five-year |
| uranium for their aggressive nuclear program. | | | | plan. |
| In another interview, also published in April, Gene Clark, | | | | |