
A record number of Finns favor nuclear power, a fresh survey commissioned by Finnish Energy has found, citing fighting climate cha...
Two Seattle companies have won Pentagon contracts to develop nuclear-powered prototypes for space applications, with orbital demon...
The US Department of Energy (DOE) today extended the deadline for applications and sealed bid submissions under the US$6 billion C...
Two utility industry trade groups have asked for more time for their members to consider applying for funds under a new federal pr...
Electricite de France SA’s Hinkley Point B Nuclear Power Plant could be kept open to help the UK alleviate a power supply crunch...
Uranium Primer - Uranium Contract Pricing
For deliveries under long-term uranium contracts, there are two prevalent pricing mechanisms:
• Specified Pricing, in which the price is either a fixed price, a series of fixed prices, or a base price plus adjustment for inflation to the date of delivery. The adjustment mechanism is usually either a combination of published indexes, or a fixed annual percentage rate. This mechanism was used almost exclusively during the nuclear industry’s infancy. It was first typically used in sales of steam turbines and electrical equipment to utilities, and was later adapted to the sale of nuclear fuel.
• Market-Related Pricing, in which the price is based on the uranium spot market price at or near the time of delivery, and/or some other published market index, such as the average US import price. In most instances, the price is the market price less a discount (or plus a premium). The discounts are usually fixed, but in some cases are variable, increasing as the market price increases. Market-related price mechanisms frequently include a floor price below which the contract price may not fall. The floor, which protects the seller, is usually either base adjusted for inflation, a fixed price, or a production cost-related mechanism. In some cases, the floor used has been a government-specified floor, which is the official floor price of the country that has jurisdiction over the producers’ production and marketing operations. Market-related price mechanisms also frequently includes a ceiling price above which the contract price may not rise. The ceiling, which protects the buyer, is usually a base adjusted for inflation or a fixed price.
Download PDF to read more on uranium contract pricing