Uranium prices are set to climb over the next two years following the flooding of the Cigar Lake uranium project in Canada late October, according to industry observes.
UBS, the Swiss-based bank, raised recently its forecasts for uranium by 20% for 2007 and 2008 to $71 and $75 a pound respectively due to more demand from new nuclear power generating capacity.
The price of uranium used to fuel nuclear reactors, has risen by more than two thirds this year, and has more than tripled since the end of 2003.