Spot Price for Uranium at 20-Year High

Spot Price for Uranium at 20-Year High

Friday, October 08, 2004 at 13:40

Uranium mining companies in Saskatchewan are getting a big boost from the markets these days.

The spot price for uranium is currently above 20 dollars a pound — a level not seen in 20 years.

In fact, as recently as 3 years ago, uranium was trading at about 7 dollars a pound.

World demand for uranium has been steadily increasing over the past couple of years as uranium from stockpiles of abandoned nuclear weapons grows more and more scarce.

Cameco Corporation spokeswoman Alice Wong says her company didn’t slow down its exploration efforts during the lean years, and now, it’s definitely in a position to put more money into those activities.

Wong says her company won’t be able to reap the benefits from the higher prices right away, since many of its current contracts to buyers were negotiated with price ceilings.