Uranium Energy Corp., a uranium exploration and development company controlling one of the largest databases of historic uranium exploration and development in the country, is sitting on top of what could be the biggest uranium boom since the advent of nuclear energy.
The U.S. used to be the world’s leading producer of uranium, peaking in the 1970s with the increase in production of nuclear power plants as well as nuclear weapons. After 1980, environmental concerns over the use of nuclear power, together with the increasing availability of low cost foreign energy sources, essentially ended the construction of new nuclear power plants in the U.S. This, together with the eventual reduction in nuclear weapons production, caused a dramatic decrease in the demand and price for uranium, and U.S. production fell sharply.
Although there was still a market for uranium on a worldwide basis, public opinion in the U.S. turned away from uranium. By 2007, the U.S. accounted for only 4% of total worldwide production, with Canada, Australia, and Kazakhstan producing 60%.
But today, an increased focus on the problems associated with fossil fuels, including global warming, oil spills, and the importance of energy independence, has resulted in a strong new market for uranium. And the market is worldwide, fueled by demand for nuclear power in Asia, Europe, and Africa, as well as North and South America. While production has only slowly begun to grow, the price for uranium is now nearly 4 times what it used to be. Production is simply not keeping up with demand.
Uranium Energy Corp is taking advantage of this inequity with a strategy of acquiring uranium exploration databases and leveraging those databases to generate acquisition targets. It’s a strategy that has been effective. The company has focused its property acquisition program primarily in the western and southwestern U.S., including Texas, Wyoming, New Mexico, Arizona, Colorado, and Utah. This region has historically been the most concentrated area for uranium mining in the country. With the use of historical exploration databases, Uranium Energy Corp has been able to target properties for acquisition that have already been the subject of significant exploration and development by senior energy companies in the past.
UEC’s operations are managed by professionals with a recognized profile for excellence in their industry, based on many decades of hands-on experience in uranium exploration, development, and mining. In addition, the company is well financed to execute on its key programs.
Taken together, it puts Uranium Energy Corp in a perfect position to capitalize on what is becoming the world’s first significant alternative energy boom.
For more information, see the company website at www.UraniumEnergy.com.
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