LONDON, Dec.27: With nuclear power returning to centre stage in the debate over how to move to non-carbon-based fuels as many as 251 new nuclear reactors are said to be in the process of being commissioned world wide pushing up in the process the demand for uranium and doubling of its price to $72.5 per pound.
Analysts are predicting that the price could go even higher in 2007, hitting $100 per pound.
There are said to be 442 nuclear reactors already operating world-wide.
The Times reported on Wednesday that the doubling in the price of uranium has attracted so many miners to the sector that IAEA inspectors may not be able to keep track of the new supplies, thus raising fears that uranium from these new mines could fall into the hands of terrorists or hostile nations.
The Vienna-headquartered agency is talking with companies such as Cameco, of Canada, and BHP Billiton about how to improve monitoring of the uranium market.
The price rises have been exacerbated by a shortage of yellowcake uranium. This shortfall has its roots in the post-Chernobyl period when new reactors, and uranium mines, were not commissioned.
Many of the mining companies setting up to take advantage of these record uranium prices are looking to open mines in Africa or Central Asia, and it is these new supplies that worry the IAEA.
The agency relies on individual governments to account for all the nuclear material produced or used by that country. Its inspectors then match the numbers from the supply and enrichment side to ensure that none has gone missing.
The agency has only 250 inspectors and if weak governments are unable, or unwilling, to keep track of supply from a growing number of mines there is a chance that material will not be accounted for.
