NUCLEAR QUESTIONED Cameco has plans to double its uranium output by 2018 to meet the growing demand for the nuclear fuel from countries including China, India and Korea. But China called into question its ambitious nuclear plans on Wednesday, with the government freezing approvals on all new reactors. The Asian nation has some 27 reactors under construction and 50 in the planning stage, according to the World Nuclear Association. Japanese engineers were scrambling on Thursday to restore a power cable to the crippled Fukushima plant in the hope of restarting pumps desperately needed to pour cold water on overheating fuel rods. However, despite fears of a nuclear catastrophe, analysts were quick to point out that once the immediate crisis is over, the uranium markets will recover. "With the confusion and uncertainty in the market relating to uranium equities, we recommend investors focus on well-financed producers with high quality assets and the ability to weather depressed uranium prices," RBC Capital Markets mining analyst Adam Schatzker said in a note. He named Cameco, Uranium One and Paladin as good bets for longer-term recovery. ($1=$0.99 Canadian) (Additional reporting by Claire Sibonney; editing by Rob Wilson) c Thomson Reuters 2011 All rights reserved
