Uranium One Inc. (UUU.TO), which mines the raw material used in
reactor fuel, rose to its highest in six weeks in Toronto after
Japan's pro-nuclear Liberal Democratic Party won a landslide
election victory, Bloomberg reported.
Uranium One rose 4.5% to C$2.10 in Toronto, its highest since
the end of October. Shares of the Vancouver-based company have
declined 2.8% this year. Cameco Corp. (CCO.TO), the world's
third-largest uranium producer, rose 2.9% to C$19.84. Paladin
Energy Ltd. (PDN.TO), an Australian-based producer, climbed 11% to
The LDP, led by Shinzo Abe, captured a two-thirds majority in
Japan's lower house of parliament.
"The LDP governed Japan for much of the postwar period and is
seen as being favorable towards nuclear power," Greg Barnes, a
Toronto-based analyst at TD Securities Inc., said in a note to
Japan moved to shut down its atomic reactors after last year's
tsunami and earthquake triggered a meltdown at Tokyo Electric Power
Co.'s Fukushima Dai-Ichi nuclear power plant. The LDP campaigned on
Japan's need to restart the reactors to cut the cost of importing
natural gas and coal to fire conventional power stations.
The spot price of uranium has fallen 36% since March 10, 2011,
the day before the earthquake and tsunami struck.
Cameco was the third-largest uranium miner last year after
Kazatomprom, Kazakhstan's state-owned producer, and Paris-based
Areva SA, according to the World Nuclear Association.
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