There seems to be too much focus on the spot price of uranium, which is a continuation of the destabilizing impact of traders and hedge funds. They were the ones that took the price to $136/lb, and when this move was exposed as being unrealistic, there was a scramble to get out.

The real buyers and consumers - the utilities - just watch and shake their heads. The real fundamental question is how the energy value of uranium compares with that of other, more polluting forms of energy. Consider that the thermal coal price has risen by 500% over five years. Uranium has risen from $10/lb to $65/lb, a rise of 650%. Consider that the cost of coal represents 50% of the cost of coal fired electricity, but uranium represents less than 10% of the cost of the end product, being electricity.

Do the math. Uranium is much cheaper, relatively and simply.

Short term thinking will only cause the serious money to miss out on a great buying opportunity presented by short term trading expectations.

US public opinion strengthens pro nuclear
An April survey of US citizens (N=1000) found that overall 82% said nuclear power will be important in meeting the nation's electricity needs in the years ahead. In a change since last October, most now put economic growth ahead of climate change and energy security as a prime concern, with air pollution trailing in a list of four. Public support for building new nuclear power plants strengthened three points to 78% since October, and 55% of respondents self-identified as environmentalists.

The survey also showed clear public support for government incentives to reduce CO2 emissions - 79% approve of providing tax credits "as an incentive to companies to build solar, wind and advanced-design nuclear power plants," and 37% strongly approve. Only 20% do not approve. When asked about providing federal loan guarantees to companies that build solar, wind, advanced-design nuclear power plants "or other energy technology that reduces greenhouse gases, to jump-start investment in these critical energy facilities" 77% approved.

The Real Bottom Line On Nuclear California's Energy Colonialism

By MAX SCHULZ

The Rancho Seco nuclear power plant could generate 900 megwatts of electricity. It was shut down and converted to solar power, and today generates four megawatts. Since the mid-1970s, California's economy has grown while per-capita energy consumption stayed flat - an astounding fact, considering that such consumption has increased by roughly 50% elsewhere in the country over the same period. But consider the story of the Rancho Seco Nuclear Generating Station. Opened in 1975, it was capable of generating over 900 megawatts (MW) of electricity, enough to power upward of 900,000 homes.

Fourteen years after powering up, the nuclear reactor shut down, thanks to fierce antinuclear opposition. Eventually, the facility was converted to solar power, and today generates a measly four MW of electricity. After millions of dollars in subsidies and other support, the entire state has less than 250 MW of solar capacity.

Site selected for laser enrichment plant
Global Laser Enrichment (GLE), a subsidiary of GE Hitachi Nuclear Energy (GEH), has announced selection of Wilmington, North Carolina for a potential commercial uranium enrichment facility based on Australian SILEX technology. Commercial licensing activities are currently underway to support a projected start-up date of 2012, subject to the results of a demonstration test loop, now under construction. The commercial GLE facility would have a target capacity of between 3.5 and 6 million separative work units (SWU) - the latter being about 8.5% of expected world demand in 2015. GEH intends to make a final decision on construction early in 2009.

New South Australian mine for fast track
In the light of recent "outstanding exploration success" and encouraging metallurgical test work, Quasar Resources, an affiliate of Heathgate Resources which operates the nearby Beverley ISL mine, is reported by Alliance to have decided to proceed directly to mining its Four Mile East deposit in South Australia. The first stage of in situ leach (ISL) mining will commence as soon as a lease is granted, probably late 2009. Alliance Resources Ltd is a 25% free-carried joint venture partner.

Uranium Depletion And Nuclear Power
by T D Jagadesan
DR Homi Jehangir Bhabha, a great advocate of civil nuclear energy who envisioned that abundant availability of nuclear energy -- both fission and fusion together -- would serve to eliminate poverty, was acutely aware that India was short of uranium and had plentiful thorium. Therefore, even at an early stage he formulated the three-stage nuclear energy plan -- heavy water natural uranium reactor at the first stage, fast breeder at the second and thorium-bred uranium 233 reactor at the third stage. He further hoped that fusion energy would be tapped in about 50 years time. Therefore, uranium shortage in India should not come as a surprise to those interested in the country's advance in nuclear energy programme.

According to Dr M R Srinivasan, nuclear reactor engineer and former chairman, Department of Atomic Energy (DAE), India has only about 1,00,000 tonnes of uranium in the ground and this will be sufficient to support 10,000 mega watt heavy water-natural uranium reactors for their lifetime. While, some complacency on the part of the DAE in the early 90s may have led to the serious uranium crunch our reactors face now, he rightly highlighted that there is a long-term uranium shortage if our nuclear power programme has to go beyond 10,000 MW. He has also pointed out that without at least 50,000 MW reactors producing plutonium, the country cannot have a viable thorium-bred uranium-233 programme.

One further RC rig has recently been mobilised, and another is on its way, to commence exploration for the first time over other targets identified away from Anomaly A in the project. Diamond drilling also continues at Anomaly A with two diamond core rigs. During the first quarter, 11 holes were drilled for 4,958m bringing the number of diamond drill holes drilled at the project to date to 34 holes for 12,887m. Lab results are still being received and a table of the results that have been generated during the quarter are available on the Company website As planned, exploration drilling has commenced on targets identified beyond the Goanikontes' Anomaly A area. To start, eight holes were drilled into the southern end of the Oshiveli trend where it encroaches in to the Anomaly A area. Results from these holes are pending. As well, the Company has sourced another RC drill rig which has been mobilised to the Rossingburg Alaskite trend and will commence drilling during the first week of May. During the next reporting period, drilling is also planned to commence at Ompo concurrent with the Rossingburg drill program.

The increased work load has lead to the procurement of larger office space and the establishment of a sample preparation laboratory in Swakopmund. The laboratory is being built by an independent laboratory firm for the sole use of the Company. It is expected that this facility will greatly expedite the processing of drill sample results which to date has been a major constraint on advancing the project activities.

Bannerman Resources Provides Market Update
Bannerman Resources Ltd (TSX:BAN.TO)(ASX: BMN) ("Bannerman" or the "Company"), an Australian-based uranium mine development company, is pleased to report on corporate and project activity to date. The following items are excerpts from the first quarter activity report available on the Company's website, www.bannermanresources.com. Exploration Drilling Activity : Goanikontes Anomaly A continues to be the focus of drilling activity. There are three reverse circulation (RC) drill rigs active at Anomaly A drilling infill holes on a 50m x 50m grid in areas identified during the resource update that require more drilling. During the first quarter the RC programme completed 99 holes for 30,152m bringing the total number of RC holes drilled at the project to 333 holes for 93,072m.

Uranium Bearish as Tight Credit Cools Investors
Uranium prices could fall further as investor buying interest fades because of tighter money and nuclear reactor demand staying sidelined, investment managers say. Uranium, used to fuel the world's nuclear plants, hit a record high of $136 per pound in June last year on expectations of a massive build-up of power plants, but since then the spot price UX-U3O8-SPT has more than halved to $65.

"Compared to last year's sunny prospects for uranium investment, the sky is now somewhat cloudier," said Robert Wallace, CEO of London-based uranium investment manager Yellowcake.

Bearish sentiment has spread to the long-term contract price, which fell $5 for the first time in 11 months to $90 this week, as many reactors now have sufficient supplies.

A long-term price is settled between producers and consumers, mainly nuclear reactors, in contracts for at least three years, according to UxConsulting.

The main driver behind the spot price, which accounts for nearly 10 percent of total annual turnover, has been the speculative community believing in a "nuclear renaissance."