Issue link: http://resourceworld.uberflip.com/i/807573
10 www.resourceworld.com A P R I L / M A Y 2 0 1 7 Since the now infamous earthquake and tsunami struck in March 2011, the Fukushima nuclear disaster has hung like a large mushroom cloud over the global ura- nium sector. The devastating repercussions in Japan sent uranium prices tumbling, and convinced some countries to decom- mission their nuclear reactors and switch to other fuels. But in recent months, some key devel- opments have left industry officials feeling more optimistic amid signs that the market is poised for recovery. One of them was the announcement on January 20, 2017 that Kazakhstan state- owned producer Kazatomprom intends to reduce its output by 10% this year, a move that is expected to spark a reduc- tion of 5 million pounds of uranium oxide, an amount that equals roughly 3% of total global uranium output. Industry officials say relentless production from Kazatomprom, combined with Japan's Fukushima nuclear disaster are the key reasons why the price of uranium fell to a 12-year low US $18.75 in the fourth quar- ter of 2016. That's down from US $72.63 in January, 2011, two months before an earthquake and tsunami disabled three reactors at the Fukushima nuclear plant, causing their cores to melt down and forcing Japan to shut down 50 nuclear reactors that remained intact. Since Kazatomprom announced the plan to slash production, spot prices have rebounded to US $25.50 per pound, prompting speculation that the price could go higher. Hopes for improved prices are based in part on the assumption that after giving the green light for five reac- tors to restart, Japan's Nuclear Regulation Authority (NRA) will soon allow more reactors to resume operations. This has been welcome news for companies in the sector which have suffered through what investment firm Scotia Capital said is shap- ing up to be "the lost decade" for uranium demand. Uranium Energy Corp. [UEC-NYSE MKT], for example, recently raised $26 million through a public offering of 17.3 million units priced at $1.50 per unit, money to advance a portfolio of uranium assets in Texas that are amenable to the low cost In-Situ recovery method. "We will also look at acquisition opportunities, but all within uranium,'' said Uranium Energy CEO Amir Adnani during an interview with Resource World. Holding a fully-licensed uranium pro- cessing facility, Uranium Energy can produce up to two million pounds of ura- URANIUM OUTLOOK – light at the end of the tunnel by Peter Kennedy