Liberal Democratic Party of Japan is back

Liberal Democratic Party of Japan is back

After the 11 March 2011 earthquake and tsunami saw the Fukashima Daiichi nuclear reactor disaster, 53 other Japanese reactors were closed down. Prior to to the Fukashima disaster, nuclear energy accounted for 25% of Japan’s electricity supply.

In response, Germany announced in May 2011, it was abandoning its nuclear energy pursuits completely by 2022. Nuclear energy accounted had for 22% of the German electricity supply in 2010.

The spot uranium price has since declined from US$65/lb to US$41/lb (-37%).

Victory at last weekend’s election by the Liberal Democratic Party had the Australian uranium explorers and and producers cheering given the expectation the Japanese nuclear industry will be “turned back on”.

The Liberal Democratic Party has been in government in Japan since 1955, except on two occasions; eleven months during 1993 and 1994 and between 2009 and 2012.

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Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

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