1. Westinghouse Case Facts Price of uranium went from $6 to $40 between 1972 and 1976 In 1972 worlds supply of uranium exceeded annual demand by 400% In early 1970s new discoveries were made in Canada and Australia Uranium not traded on an organized exchange. (Spot Market)

2. Discussion Points Cartel started in 1972, 29 members, promoted by French and Canadian governments The (club) assigned the sales but obtained competing bids Westinghouse could not buy uranium for less that $26 a pound. Defaulted on 27 contracts that could have meant a 2.6 billion dollar loss

3. Discussion Continued Utilities sued Westinghouse and cases were consolidated in Richmond, VA Westinghouse sued Gulf Oil of Canada and the cartel members. In 1976 Friends of the Earth uncovered existence of the cartel in Australia Once exposed the cartel disbanded Finally settled with utilities for 52 million dollars

4. Historical Uranium Prices 2001$7 11/2007$131 10/09$45 11/10$31 Current range during last year has been $46 - $56 Some projections put it at $150 by 2030