What’s behind the red-hot uranium boom

Uranium is hot, and it’s not just because of its protons and neutrons.

While demand for the metal has been steady, it’s expected to surge as a host of new nuclear plants come online in coming years. And supplies are running short, thanks to severe flooding at two of the world’s biggest mines and a dwindling amount of element number 92 that can be salvaged from old nuclear warheads.

And, oh yeah, speculators, did we mention them?
A renewed interest in nuclear power, sparked by global warming fears and surging electricity use in the developing world, is the main driver behind the expected boost in demand.

Worldwide, there are 28 new nuclear reactors being built, 64 on the drawing boards and another 158 proposed, according to John S. Herold’s Ruppel. If all those reactors get built, it would mean 57 percent more reactors from the 435 in operation.

Ruppel said in 2006 the world consumed 180 million pounds of uranium, but it only produced 100 million pounds. The rest came from old weapons, mostly Russian. At current supply and demand levels those old stockpiles will be eroded by 2015.

“Without significant new production coming online, you’re going to have a shortfall,” said Ruppel.

CNN