(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, Arash 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.