Areva resumes test drilling for uranium in Nunavut, Canada
Canadian uranium miner Areva Resources is resuming test drilling for the radioactive mineral at its Kiggavik project site near Baker Lake, Nunavut.
Areva has already completed a winter road which will facilitate the transport of supplies such as 200,000 litres of fuel.
The miner is in the process of applying for a permit to open the first uranium mine in Nunavut.
Nunavut is the biggest and youngest federal territory in Canada. It had announced in June 2012 that it would approve the extraction of uranium, but attached the stipulation that the radioactive ore must only be used for a peaceful purpose and in an environmentally-responsible way.
The uranium sector has taken a beating in recent years. Prices for the radioactive ore have dropped roughly 70% from peak pricing in 2007. Furthermore, the Fukushima disaster forced Japan to shut down 48 of its 50 reactors, driving down both price and confidence in the nuclear industry.
But there is potential for recovery. There are plans and ongoing projects to build 500 new nuclear reactors across the world to complement or replace the roughly 200 existing nuclear power plants.
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