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Peninsula Energy Well Positioned As Saudi Arabia To Build 16 Nuclear Reactors

Peninsula Energy (ASX: PEN) is well placed to capitalise on uranium demand as more new nuclear reactors are planned globally.

This is highlighted by Saudi Arabia's plans to build 16 nuclear reactors with a combined generation capacity of 22 gigawatts, of half its current electricity output, by 2030.

The reactors are expected to cost about $7 billion each, or about $112 billion in total, according to Arab News.

Notably, the first two reactors are expected to be ready within 10 years.

Power demand in Saudi Arabia is estimated to grow 7% to 8% during the next 10 years.

Peninsula plans to commence ISR production at its Lance Projects in Wyoming in 2014 building to production of 2.2 million pounds of U3O8 per annum over three years.

It is also developing a conventional mining and milling operation at Karoo Projects in South Africa by 2016-17, building to between 3 million and 4 million pounds of U3O8 per annum over three years.

To top it off, the company is planning to acquire one of several identified uranium projects in Australia to develop a further 3 million to 4 million pounds of U3O8 production per annum.

This will all contribute to its goal of producing between 8 and 10 million pounds of U3O8 per annum before 2022.

Lance has a JORC Resource of 53.7 million pounds U3O8 at the Ross, Kendrick and Barber Production Units.

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