More evidence is suggesting that world views on nuclear power are starting to change. Sweden is the latest country to lift is uranium mining ban as more countries turn to nuclear power as an alternative source of energy.
The energy transition is starting to manifest itself in the rise of critical minerals demand as the world looks to reduce carbon emissions. Given its past fraught with catastrophic accidents, the healing power of time on nuclear energy is staring to take effect and more countries are open to the idea of bringing it back as an alternative energy source.
“The government has outlined the construction of a minimum of ten large reactors within the next two decades,” a Mining.com article reported, noting that in the beginning of the year, " Swedish Prime Minister Ulf Kristersson shared with reporters that the government is in the process of ‘altering the legislation,’ which will encourage heightened nuclear investment within the country."
The global transition cleaner energy also forced Sweden to take a hard look in the mirror and realize it could make use of what it already had. In this case, it’s an abundance of supply.
“Sweden accounts for 80% of the European Union’s uranium deposits and currently engages in uranium extraction as a byproduct during the mining of other metals,” the article added.
A Mining ETF to Consider
As more countries turn to uranium, this could have a domino effect on other countries on the fence about using nuclear power. If demand spikes, this could have a spillover effect on miners, thus creating an opportunity for investment.
For exchange traded fund (ETF) opportunities, consider the Sprott Uranium Miners ETF (URNM ). The fund tracks the North Shore Global Uranium Mining Index, which tracks the performance of companies that devote at least 50% of their assets to the industry, which may include mining, exploration, development, and production of uranium, or holding physical uranium, owning royalties, or engaging in other, non-mining activities that support the mining industry.
For added global diversity, various holdings are allocated into different countries. Canadian mining companies comprise over 50% of the fund, but it also includes holdings in other countries such as Hong Kong, the United Kingdom, Kazakhstan, and Australia.
“Uranium mining equities posted positive results in July, rising 2.75%,” a Sprott Uranium Report said. “This marks the second consecutive month of outperformance of uranium mining equities over physical uranium, which is a reversal of several prior months of underperformance, which we believed indicated a market dislocation.”
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
