15:29 AEST July 1, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.
Sydney, Australia (ABN Newswire) - Toro Energy Ltd (ASX: TOE) says it is commencing its first round of offtake agreement negotiations with international buyers for uranium oxide product from its Wiluna project in Western Australia, which is expected to see a maiden production from early 2013.
The company is in talks with uranium marketers and energy utilities in both Japan and the United States. Talks will follow immediately with potential customers in Europe, Korea and China, Toro said.
Toro's board and senior management believe the fundamentals of the global uranium market remain supportive of new uranium developments. According to World Nuclear Association figures, there are now 57 nuclear plants under construction, with 23 in China alone, and another 151 plants ordered or planned worldwide.
Chairman Erica Smythe said uranium demand was growing but supply was tight. The long-term uranium price has been relatively stable at around US$60 per pound, down from historical highs but a significant premium to the spot price, which continued to trade flat at around US$41 per pound, she said.
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