Uranium stocks dumped after Japan crisis

Australian investors have dumped uranium stocks as Japan scrambles to contain meltdowns at nuclear power plants.
Rio Tinto Ltd-managed Energy Resources of Australia, was down $1.23, or 13.09 per cent, at $8.17 at 1501 AEDT on the stock market on Monday.
It operates one of Australia's three uranium mines and is the world's fourth largest uranium producer.
Toro Energy Ltd had plunged 2.5 cents, or 19.23 per cent, to 10.5 cents, fellow uranium explorer Extract Resources Ltd was 95 cents, or 8.94 per cent, weaker at $9.68, while Africa-focused uranium miner Paladin Energy Ltd was down 77 cents, or 16.28 per cent, at $3.96.
CommSec analyst Steve Daghlian said the investor reaction was possibly knee-jerk, but the situation in Japan was still unfolding, so it was uncertain whether the crisis would trigger a turning point in sentiment towards nuclear power.
"You could put it down to a knee jerk reaction at the moment," he said.
"The cooling systems at two reactors in Fukushima failed, we had dozens of people being evacuated, explosions and leaks ... so that would have raised questions on the safety of nuclear power plants overall in the short term.
"It could perhaps open up some dialogue among some global governments.
"We'll probably have to wait and see what comes out of Japan - every hour, something else is happening there."
On Monday, there were reports of a hydrogen blast in reactor number three at the Fukushima nuclear power plant on the island of Honshu, following a hydrogen explosion at the number one reactor at the same facility on Saturday.
Toro Energy managing director Greg Hall agreed it was too early to tell how the situation in Japan would affect the nuclear power sector, including whether the tectonically-active nation would change design parameters for nuclear facilities in light of recent events.
The Fukushima plant had been designed to withstand a 6.5 metre high tsunami, but was hit by a 7.0 metre wave.
All reactor cores were still solid, Mr Hall said.
"The situation at Fukushima is still evolving and they have got past their initial issues and they are now making efforts to cool and control the reactors," he said.
"We have to let them do that.
"The Japanese nuclear safety organisations obviously are trained for these eventualities.
"If the reactors get under control, that's an extremely positive outcome."
Mr Hall said the outlook for the uranium market was buoyant before the crisis in Japan, with a rapid build up in new nuclear power plant builds.
Globally, 58 were under construction, with about 20 of these in China, he said.
Also on Monday, ratings agency Fitch Ratings said renewed safety concerns surrounding nuclear power generation could benefit the development of new liquefied natural gas (LNG) projects in Australia.
"Events in Japan have highlighted the risks of operating nuclear generation in seismically active areas," Fitch Energy & Utilities team director Arnon Musiker said.
"Any potential switch away from nuclear power is likely to favour gas-fired generation, the most practical low carbon-emission alternative."
Fitch said public concern over nuclear power was now higher than it had been for several years, and it was not currently possible to determine whether recent events would change north Asian governments' commitment to nuclear power.
"Energy security, diversification of fuel mix and a reduction in carbon emissions have underpinned Japan's historical commitment to nuclear power and China and South Korea's significant nuclear expansion programs.
"Gas is the natural substitute fuel."