Investing.com-- Australian uranium stocks rose sharply on Friday after Reuters reported that U.S. President Donald Trump planned to sign an order to jumpstart the nuclear energy industry.
Shares of Nexgen (NYSE:NXE) Energy Ltd DRC (ASX:NXG), Deep Yellow Ltd (ASX:DYL), Boss Resources Ltd (ASX:BOE) and Paladin Energy Ltd (ASX:PDN) surged between 8% and 14%, outpacing a 0.2% rise in the ASX 200.
Their gains were sparked chiefly by a report that Trump planned to sign orders easing the regulatory process for the approval of new reactors while also boosting fuel supply chains– with both measures presenting a stronger outlook for uranium demand.
Trump is also expected to invoke Cold War-era legislature to wean the U.S. off its dependence on Russia and China for enriched uranium, nuclear fuel processing and reactor technology.
Australian uranium miners are among the largest outside Russia and China, and stand to benefit from the U.S. culling its dependence on other countries, given that Canberra also has favorable trading ties with Washington. Rare earth miners are also expected to benefit from a similar trend.
The U.S.’ readoption of nuclear energy presents a major boost for global uranium demand, which has remained languid since the 2011 Fukushima disaster in Japan.