In case you missed the news earlier this week, the High Court in Japan’s Osaka province has overturned the local court injunction preventing two reactors from restarting. According to Bloomberg, this is the third time a Japanese High Court has ruled in favour of Japanese utilities during the restart process. With the injunction overturn, it’s likely both reactors will be back online within a month.
This is a win for the Kansai Electric Co., which owns the No. 3 and 4 Takahama reactors. It’s also a win for Japan, which has seen air pollution levels rise exponentially since shutting down its fleet, and continues to hemorrhage money through natural gas imports.
It’s also a big win for the industry in general. As I’ve highlighted many times before, the growth story for nuclear, and increased uranium demand, is a China, Russia and India story. However, while China may be the leader in reactors under construction, Japan is one of Nuclear’s sentiment leaders. Positive progress in Japan will help the industry far beyond ensuring Japanese utilities do not dump their uranium inventories onto the spot market because it will start to bring sentiment close to the positive, long term fundamentals.
Currently 25 of Japan’s reactors – around half of it’s entire fleet – are in various stages of the restart progress. The most recent forecast I’ve seen (by Japan’s Nuclear Energy Institute) suggested we could see 19 of these in operation by the end of March 2018. With this latest decision by the provincial High Court we are possibly starting to see a pattern that, while delaying tactics will no doubt be used with some other restarts, it’s only a matter of time before each reactor that gets NRA approval, comes back online.
Dev Randhawa, CEO and Chaiman
Forward-Looking Information: Some of the posted entries on the CEO Corner may contain forward-looking statements. Forward-looking statements address future events and conditions which involve inherent risks and uncertainties. Actual results could differ materially from those expressed or implied by them. Examples of forward looking information and assumptions include future estimates of the worldwide supply and demand for uranium and the effect that these changes could have on the short term and long term price of uranium on the world markets, statements regarding the future operating or financial performance of Fission including the net present value, metal recoveries, capital costs, operating costs, production, rates of return and payback. Forward looking statements involve known and unknown risks and uncertainties which may not prove to be accurate. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com.
In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operations and various components thereof affecting the economic performance of Fission. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.
Links: Some of the posted entries on the CEO Corner may include links to 3rd party websites. Fission has not reviewed all websites linked to or from this Site and is not responsible for the contents of any such websites. The inclusion of any link does not imply endorsement by Fission of the linked website or its content. Use of any such linked website is at the user's own risk.
For further information we refer you to our legal notice.