Nova Scotia's moratorium on uranium exploration and mining could be costing the province in a world looking to reduce carbon emissions, says a financial analyst with Acadian Securities Inc. in Halifax.
"It seems like a lost opportunity," Ken Chernin said in an interview Thursday.
Nova Scotia imposed the moratorium in 1982 in response to public concerns about the safety of nuclear energy. It is the only province in Canada, the world's largest uranium producer, that bans uranium exploration and mining.
Growing concerns about climate change have prompted something of a nuclear renaissance, with many jurisdictions considering nuclear energy, which produces no carbon dioxide emissions, as a green alternative to dirty and dwindling fossil fuels like oil, gas and coal.
"Every other province can explore for uranium," said Mr. Chernin, who noted that large amounts of capital, driven by higher uranium prices, are being spent on uranium exploration in Newfoundland and Labrador.
"If we did allow for exploration, aside from the enormous capital expenditures, at least we'd know where it is," he said, adding that fossil fuel supplies are barely keeping up with global demand. "It can't hurt."
Natural Resources Minister David Morse said Thursday the government considers nuclear energy a viable non-carbon energy source, based on current science.
"I feel the science is credible," he said, noting the nuclear industry has come "some distance" in the past 20 years with regard to the safe handling and storage of nuclear waste materials.
"You could argue that (nuclear energy) is part of the solution," he said, noting that 90 per cent of the electricity in France, a global leader in addressing climate change, comes from nuclear energy.
But the minister said the province won't drop the uranium moratorium without the public's approval.
"We need direction from the public. We want to hear from Nova Scotians."
The province, which is committed to the increased use of green energy, plans to hold energy forums in November that will allow public input on the hot-button issue.
Mr. Morse said Atlantic Canada, and Nova Scotia in particular, are rich in uranium and he acknowledged vast amounts of money are being spent on uranium exploration in Newfoundland and Labrador.
"It's a huge component of their exploration investments," he said, noting that $65 million is being spent in Newfoundland and Labrador on uranium exploration alone this year, compared to the $18 million spent in Nova Scotia this year on all types of mineral exploration.
Total mineral exploration expenditures in Newfoundland and Labrador in 2007 are $115 million, says Natural Resources Canada.
Canada produces one-third of the world's uranium supply from mines in northern Saskatchewan, says the Uranium Information Centre. Uranium was selling for US$75 a pound on Thursday, says Cameco, the world's largest uranium producer, which operates in Saskatchewan and the United States.