By Dave Brown - Exclusive to
UraniumInvestingNews.com
Following the week in which South Korea set a preliminary
outline for long term national energy policy, with obvious
implications for
uranium
,
oil
,
gas
, and
lithium
investors, Italy is also releasing 10 year guidance for a
national
energy
plan. Italy is the largest importer of electricity in the world
with the majority of its sources located in Switzerland and
France. The successful integration of an increased domestic
nuclear infrastructure will help the country achieve its
objectives with regards to security of supply, carbon reductions
and price competitiveness.
The Commissioner of Italy's national agency for research into
energy (
ENEA
), Giovanni Lelli said that the overall objective of the Italian
government was to target a national energy solution based on 25
percent nuclear, 25 percent renewables, and 50 percent fossil
fuels by 2020. Italy is expected to begin building eight new
nuclear reactors by 2015.
Italy's largest utility,
ENEL
(BIT:
ENEL
), which produces 14 percent of its electricity through nuclear
power plants in Slovakia and Spain, is expected to invest between
$20-24 billion to build four nuclear generators.
The reactors are expected to be European Pressurized Reactors (
EPR
). Currently
four similar reactors are under construction with the first two
in Finland and France and two additional units being built in
China.
A nuclear regulatory authority is going to be set up in the
coming months and a suitable site for a surface repository
facility for storing waste is being investigated and in the near
future they will also define a long-term national program for
managing waste and spent fuel, in accordance with the European
Community's recent Waste Directive.
In
July
of 2009 the Italian parliament adopted a bill bringing to an end
the ban on the use of nuclear energy. Italy definitively approved
the return of nuclear energy after 22 years as part of a new
development strategy. Italy abandoned nuclear energy after a 1987
referendum, whose result was strongly influenced by the Chernobyl
disaster in Russia the previous year. The new law covers a large
range of areas including nuclear safety, licensing, research,
potential sites' selection and decommissioning.
Last February, the Italian government signed a decree defining
criteria and procedures for the construction of nuclear power
plants in the country by 2020. The decree draws a list of
criteria for suitable sites for nuclear power plants. It also
defines procedures for construction and operation of plants and a
system of financial compensation for areas that agree to host
nuclear stations. These initiatives demonstrate Italy's strong
commitment to securing national energy sources which are
compliant with international best practices underscored by a
broader global nuclear renaissance, particularly at a time when
austerity measures and economic priorities can complicate these
issues.
Mining News
Russia's state run uranium giant ARMZ has made a $1.16 billion
takeover offer for
Mantra Resources Ltd.
(ASX:
MRU
) (TSE:
MRL
), which is moving towards mining its Mkuju River uranium project
in southern
Tanzania
. Government environmental and other approvals are well advanced
and the company expects to receive a mining license soon and to
start mining in 2013, eventually producing 1400 tonnes of uranium
per year. Capital expense estimates for the project forecast $298
million for the infrastructure and treatment plant. Pending the
state level approvals, ownership is expected to be transferred to
ARMZ's Canadian-based subsidiary,
Uranium One
(TSE:
UUU
).
Uranium Spot Market Price Difference
Uranium spot market prices reached $62.50 per pound according
to UxC uranium consulting. A limited supply of the nuclear fuel
being available to utilities, producers and traders on the spot
market, has resulted in about 20 percent appreciation since
uranium traded in the $52 range in October. "As spot
material has remained fairly limited, spot offers have continued
to climb over the past two months," UxC said in its most recent
report. "Price increases did slow somewhat as the spot price
broke the $60 mark and higher than expected sales were made
toward the end of the year." As the market enters the holiday
season, trading is thin with some market participants expecting
spot demand to increase during January. TradeTech reported 5
transactions concluded during the week and confirmed that the
increase in the spot price was fueled by thin supplies and
sellers unwilling to lower offer prices. Buyers responded by
increasing bid prices, but sellers showed little willingness to
move from their offer prices.
Italy's Nuclear Renaissance
originally posted on
uraniuminvestingnews.com