ANALYSIS-US Govt's uranium transfers won't stop imports

Release of more U.S. inventories to pressure spot price

* U.S. uranium producers fear will be hurt by transfers

* U.S., biggest uranium consumer, to still rely on imports

By Tom Doggett

WASHINGTON, Dec 11 (Reuters) - The U.S. government's plan to release some of its massive uranium holdings is due to put downward pressure on spot prices, but will do little to reduce reliance on imported supplies by the United States, the world's biggest consumer of the material that fuels its nuclear plants.

U.S. mine supply of uranium has dwindled since peak output was hit in the 1970s when over 250 mines were churning out material, and it now feeds less than 10 percent of demand from the U.S. nuclear industry.

Since the United States accounts for nearly a quarter of the world's 436 operating reactors and consumes about 50 million pounds of uranium a year -- 30 percent of global demand -- it will continue to rely on foreign imports for the bulk of supply for the foreseeable future.

"We will still be importing large quantities from other countries, primarily from Canada, Australia and Kazakhstan," said Julian Steyn, president of Energy Resources International (ERI), a Washington, D.C.-based consulting firm.

Adding to short-term supplies was a move last month by U.S. Energy Secretary Steven Chu to approve the release of additional inventories.

The Department of Energy has a total of 59,000 tonnes of inventories of natural uranium built up for military reasons during the Cold War and is releasing the stocks gradually over about 25 years.

But it agreed to transfer an additional amount, up to 300 tonnes of uranium each quarter through 2010, to help pay for the cleanup of the Portsmouth uranium enrichment plant in Ohio.