Nuclear Power Frenzy Lifting Uranium Prices; As world rekindles desire for atomic energy, mines struggle to meet demand.(INDUSTRY SNAPSHOT)(KEY TREND)

Byline: ALAN R. ELLIOTT

Yu Jianfeng, the director of the China National Nuclear Corp., went to Australia last fall on a scouting mission. A key point of interest: Australia's vast reserves of uranium.

The CNNC, which oversees China's nuclear reactors, looks to expand the number of its nuclear facilities from nine to 30 by 2020. Those new reactors will need fuel.

As oil and gas prices shatter records and regulators scrutinize emissions from coal power plants, the arguments for nuclear energy have gained ground fast. Industry pros claim modern reactors are safer and more efficient, and that storage and transportation challenges for spent fuel are better understood.

Worldwide, 69 nuclear reactors are under or nearing construction. In the U.S., Congress just passed legislation that could bring 50,000 megawatts of new nuclear capacity by 2020.

The underlying message? More uranium, please.

IBD's metal ores industry group includes three of the world's four leading uranium mining and production companies: Cameco in Saskatoon, Saskatchewan, WMC Resource in Southbank, Australia, and Rio Tinto in London. The fourth, French nuclear engineering powerhouse Cogema/Areva, trades on the Paris Stock Exchange.