Uranium prices set to riseLONDON, Oct 18 (Reuters) - Uranium miners said on Thursday they were raising output in a bid to meet rampant global demand sparked by interest in atomic energy, but prices are expected to remain strong due to tight markets.
Australian uranium miner Paladin Resources Ltd (PDN.AX: Quote, Profile, Research) said it expected to produce 900,000 pounds of uranium in 2007, adding that output could reach 2.6 million pounds in 2008 and 3.5 million pounds in 2009.
Speaking at an industry roundtable in London, the company's CEO, John Borshoff, also said he saw the uranium spot price at $105-110 per pound in the first quarter of next year.
"The world is still massively short of uranium. Production delays due to shortages of skilled miners and equipment would keep the market tight for several years to come," Borshoff said.
For six years until November 2003, spot uranium prices (UX-U3O8-SPT: Quote, Profile, Research) hovered between $8 and $12/lb, before rising sharply as concerns about greenhouse gas emissions prompted renewed interest in nuclear energy.
Spot uranium hit a record high of $136 per pound in June and, although it has fallen from that level to around $78, global demand for the metal has never been higher.
Strong demand from the nuclear industry has triggered a global hunt for the metal.
Denison Mines Corp. (DML.TO: Quote, Profile, Research) said it expected to produce 700,000 pounds of uranium in 2007, rising to 2.5-2.9 million pounds in 2008, while Uranium Resources Inc (URRE.O: Quote, Profile, Research) said it expected its uranium output to run at 400,000 to 500,000 pounds per year in 2007, 2008 and 2009.