Trump's new energy policy doesn’t happen every decade and is sure to rejuvenate nuclear power
(Kitco News) - The decision by US president Donald Trump to create a US$150 million uranium reserve will provide a much-needed boost to the industry which is in a nine-year bear market, Amir Adnani, president and CEO of UEC told Kitco News at the PDAC conference in Toronto.
“Trump would define the uranium market in the next year or two and it seems like it’s almost getting to that point,” Adnani said. “Establishing a national reserve to purchase uranium, it’s a $1.5 billion program over ten years, the last time they did this in the U.S. was in the early 70s, late 60s, so this is quite an unusual situation in that it doesn’t happen every decade.”
Uranium prices have been grouped with other cyclical commodities that have taken a hit recently, Adnani said.
“The last couple of weeks have been terrible for the market. From an investment point of view, uranium is actually being coupled with oil and energy stocks, so it’s baby in the bathwater being thrown out together and so it’s actually been a difficult environment for uranium having that,” he said.
Adnani added the uranium prices should be decoupled from oil, as the two commodities have nothing to do with each other.