The life blood of modern society: electricity. Modern society would not be without electrical power. Electricity makes inroads into every aspect of our modern lives, and the need for this power is growing as developing countries evolve such as in the case of China and India. Despite the environmental hazards that nuclear power presents, it is the alternative to which most governments are turning to. Even in the United States, the 104 licensed nuclear plants operated by Progress Energy (NYSE: PGN), Duke Energy (NYSE: DUK), Entergy Corp. (NYSE: ETR), among others are a vital component of the nation's energy portfolio, producing 20 percent of electricity generation.
Concerns over shortages of oil and gas with resulting high prices in these fossil fuels, along with environmental issues regarding greenhouse gas emissions, has fueled a new interest in nuclear energy as the source of clean power to meet current and future global demand for electricity. In the last 24 months, uranium has moved from $3 per pound to more than $22 per pound, an increase of 633%. This dramatic increase is because world consumption of uranium has been exceeding production for a number of years. Currently, the world consumes 170 million pounds per year, and the annual supply is only 71 million pounds per year.
In light of this, the opportunity that uranium production provides has prompted Andresmin Gold Corporation (OTC BB: ADGD), a company committed to building shareholder value through the acquisition, exploration, and development of high-quality mineral projects in the prime Central Andes region of South America, to enter into negotiations with a private Peruvian prospector to acquire a high-quality uranium project to add to its portfolio of properties in Peru.
Nuclear energy offers a clean and efficient alternative to energy produced from coal, oil or natural gas. Electricity is produced at lower costs and a nuclear generating plant does not produce carbon dioxide emissions. New supplies of uranium will come at a higher cost which, in turn, will continue to put upward pressure on the price of uranium.