According to Bloomberg, the project aims to extract about 8,000 metric tons of uranium octaoxide from the central province of Quang Nam.

“If coal is the short-term solution to the world’s energy needs, uranium is the long-term play,” says Jason Simpkins in Money Morning.

“In a recent research note, analysts with the RBC Capital Markets Group of the Royal Bank of Canada (RY) said that the current spot price of uranium has been ‘driven to excessively low levels due to intense selling pressure and lack of buying demand, coupled with the typical illiquidity of the spot market.’

“The RBC analysts also said that ‘the long-term price, on the other hand, has not changed since May 2007 and we think this better reflects the market’s view of longer-term supply-demand fundamentals.’

“If you want a pure play on an increase in the price of uranium itself, Cameco Corp. (CCJ) is your best shot. It’s the largest producer of uranium in North America and – despite flooding at its Cigar Lake site last year – Cameco remains the world’s largest and most liquid uranium miner, making it vital to the global supply.

“The company’s profit more than doubled in the first three months of 2008, surging 125% on its uranium and gold mining operations.”

Read on here to find out which blue-chip mining companies Jason thinks have maximum profit potential.

Doug Casey in Casey Research has picked up on some other Canadian uranium mining companies: “Hathor Exploration tagged a radioactive one on its 90% owned Midwest NorthEast uranium property in Saskatchewan. The latest drill results included 15 metres running an impressive 10.02% U308 in one hole and 10.06% U308 over 9 metres in another. Nice. Hathor ended the day up C$0.27 at C$3.05, while 10% carried interest holder Terra Ventures closed flat at C$0.75.”

• Hewlett-Packard Co. (HPQ) is buying Electronic Data Systems Corp. (EDS) for $13.2 billion in a deal that will create the second largest technology services provider behind International Business Machines Corp. (IBM), the Associated Press reported. Under the terms announced yesterday (Tuesday), HP will pay $25 per share in cash for EDS.

• St. George Bank Ltd. yesterday (Tuesday) agreed to be taken over by larger rival Westpac Banking Corp. (WBK) for $17.5 billion, creating the largest Australian bank by market capitalization. Westpac, Australia’s third-biggest bank, is offering 1.31 of its own shares for St. George share, the Associated Press reported.

• United Parcel Service Inc. (UPS) announced yesterday (Tuesday) that it has ordered 200 hybrid electric vehicles and 300 compressed natural gas vehicles in an effort to shield itself from rising gas prices. The 200 hybrid electric vehicles, which will be used starting in 2009, are expected to save 176,000 gallons of fuel annually, the Associated Press reported.

• Canada’s Cameco Corp. (CCJ), the world’s largest producer of uranium, posted a $132.8 million net income for the first quarter, more than doubling its total last year as sales increased by 45%. Cameco said it could face production shortages next year as it begins a new mine at its flagship McArthur River mine area, Bloomberg reported.

• Brazil’s state-controlled oil company, Petroleo Brasileiro SA, beat analysts’ estimates with its first-quarter earnings report. Profit rose 68%, good news consider the company is about tap several offshore oil fields. “This is a surprising and very good result,” Luiz Otavio Broad, an analyst at Agora CTVM, Brazil’s largest brokerage, told Bloomberg. “The result is largely operational, and the stock should open well.”

• Record prices and slower economic growth, particularly in the United States will decrease global demand for oil, the International Energy Agency said yesterday (Tuesday), Reuters reported. “This report sees further downward adjustments to demand, and they may not be the last,” the IEA said in its Monthly Oil Market Report.

• American International Group Inc. (AIG) announced yesterday (Tuesday) that it would raise $17 billion through a combination of stock and debt to prop up a bleeding balance sheet due to two consecutive quarterly losses, Bloomberg News reported. AIG stock gained 79 cents, a 2% increase, to close at $39.16 the day of the announcement.

• Shares of Yahoo! Inc. (YHOO) jumped 5% yesterday (Tuesday) on reports that Carl Ichan could be preparing to mount a proxy battle to replace Yahoo’s board of directors after they passed on Microsoft Corp.’s (MSFT) $47.5 billion offer. The Wall Street Journal reported that Icahn could hold “as many as 50 million shares” of the Internet search engine firm. Yahoo shares gained $1.30 to close at $26.56.

Source: Global Investing Roundups: Wednesday, May 14th, 2008