Analysts have tipped the uranium industry to be on the cusp of a new resurgence following rising demand from Japan and China.
In an investor note this morning Foster Stockbroking analysts said Japan's move to restart nuclear reactors "should provide a catalyst for uranium price and equities".
"Japan's Government on Saturday approved bringing the country’s first nuclear reactors back online since the Fukishima incident in 2011," the note said.
"We anticipate that this is the first step in bringing the remaining idle fleet of 54 reactors back on line and importantly signals that nuclear power generation will continue to be an integral part of Japan’s long-term energy mix."
Foster Stockbroking said if the rest of Japan's nuclear reactors came online it would represent a 17 per cent rise in global demand and the market was already witnessing "early signs" of a price rise.
It also said China had removed a ban on new nuclear power plants and was set to build more reactors than any other country.
Analysts said the rising demand from China and Japan meant uranium supply was already struggling to keep up and the gap was set to rise.
"Ultimately, given the imminent supply gap, its low-carbon emission profile and its ability to produce low-cost power, we believe that nuclear power generation will continue to play a key role in future global power supply …" they said.
Foster Stockbroking tipped Perth-based Paladin Resources and Black Range Minerals as the two emerging miners tipped to best capitalise on the rising demand.
Rio Tinto subsidiary Energy Resources Australia has also signed a new agreement to sell uranium to Russia and is in negotiations with the United Arab Emirates and India.