A few days ago DeepLode reported that India was a current strong focus of the nuclear industry and that trade delegations were flocking to the country. The Mumbai attacks have slowed that down. I did report however that Russian nuclear people were already in India and yesterday that was confirmed with the announcement of an agreement between the two countries. So what does that mean?
Well for starters it has allowed for an immediate supply of uranium fuel to India's troubled Tarapur power plant.This facility has been operating at less than 50% of its capacity because India could not access uranium fuel supplies.This is a long term contract!!
The capacity to sign the agreement comes as a result of India being admitted to the mainstream of the global nuclear power sector. This was after India clearly separated its military and civil nuclear facilities and began to bring in appropriate safeguards to prevent nuclear materials moving between the sectors.
One can only hope this will be well monitored as Pakistan turns up the heat on India and its Government.
While the agreement with Russia includes energy in general, space exploration and technical cooperation are also included and also enables commercial deals between Russian and Indian firms. Russian firms will also build a series of large reactors across India.
India of course is planning a massive nuclear energy development...the impact of that on the price of uranium is yet to be factored in and with a slowdown in mining watch for another big run in the price of uranium.
My pick of the global near term producers Alliance Resources (ASX: AGS) will be in the right place at the right time!!