The uranium exchange traded fund was hit hard earlier this year as the disaster in Japan affected the global nuclear industry. Still, nuclear projects are being commissioned, and India recently discovered what may be the single largest uranium deposit.
The Tumalappalli mine in the Andhra Pradesh state of India holds a confirmed 49,000 tons of uranium ore and estimates put total reserves at 150,000 tons, according to Reuters.
“If that be the case, it will become the largest uranium mine in the world,” stated Srikumar Banerjee, secretary at the Department of Atomic Energy.
India has plans to further expand its nuclear power generation capacity, and the country has signed an accord with the U.S. to open its $150 billion nuclear power market to private sector contractors.
While the recent discovery in Andhra Pradesh is the largest to date, the uranium discovered is not high-grade, reports Mamta Badkar for Business Insider. Due to the low-grade quality of the uranium, the new supply may not meet energy demand. India’s total reserves, excluding the new find, is around 175,000 tons, which is below the needed supply to fuel India’s nuclear programs.