Wednesday, 26 July, 2006

ABC News Online

As Australia debates the merits of opening up new uranium mines, analysts say a global shortage of the commodity is pushing up prices.

The spot price for uranium has jumped $US2 in the past week to $US47.25 per pound.

ANZ Bank commodity analyst Andrew Harrington says half of the world's nuclear power is currently sourced from recycled nuclear weapons left over from the Cold War.

He says Australia's massive reserves of uranium are in high demand for nuclear powered plants, because recycled uranium is running out.

"Mostly it was to do with the renewed interest in uranium as a commodity, because the recycled uranium from nuclear weapons is starting to decline, so the primary source of uranium coming from mines needs to make up for that shortfall," he said.

"Currently ... about half of the market comes from decommissioned weapons and since the Cold War ended that supply is quickly running out".