Mickey Fulp: The $64,000 Question in Uranium is “When?”

Mercenary Geologist Mickey Fulp tackled the uranium market at last week's Mines and Money conference in...

May 20th, 2018

EU Leaders Seek Ways to Keep Iran Deal Alive

The EU signatories of the 2015 Iran deal met with Iranian officials on Tuesday to hammer...

May 16th, 2018

Iran: High-Level Uranium Enrichment Could Be Weeks Away

Iranian President Rouhani warned the country may resume high-level uranium enrichment in the next weeks if...

May 9th, 2018

Looking for Uranium Stocks?


Find a list in our new uranium outlook report!


EU Regulators to Examine Romanian Aid to National Uranium...

The European Commission will investigate last year’s government bailout of National Uranium Company to see if...

May 8th, 2018

5 Top Weekly TSX Stocks: Cameco Surges on Q1...

Last week's other top-gaining stocks on the TSX were First Quantum Minerals, Corvus Gold, Mandalay Resources...

May 6th, 2018

Looking for Uranium Stocks?


Find a list in our new uranium outlook report!


NexGen Makes Significant Discoveries in Winter Drill Campaign

NexGen announced it has successfully concluded a 54-hole winter drilling campaign at the Arrow and Arrow...

May 3rd, 2018

Iran Could Enrich Uranium Higher if US Exits Nuclear...

Iran is willing and able to pursue higher uranium enrichment if the US pulls out of...

May 1st, 2018
Uranium is a heavy metal that is used as an abundant source of concentrated energy and occurs in most rocks in concentrations of two to four parts per million. This makes uranium as common in the earths crust as tin, tungsten and molybdenum. Uranium Supply and Demand Uranium was discovered in 1789 by a German chemist, but much has changed since then in terms of supply and demand of the nuclear material. According to the World Nuclear Association, world mine production of uranium has expanded significantly since 2005. The demand for uranium continues to grow. Uranium is considered to be a cleaner power source in a world struggling to reduce greenhouse gas emissions in the face of global warming. In...

Uranium is a heavy metal that is used as an abundant source of concentrated energy and occurs in most rocks in concentrations of two to four parts per million. This makes uranium as common in the earths crust as tin, tungsten and molybdenum.

Uranium Supply and Demand

Uranium was discovered in 1789 by a German chemist, but much has changed since then in terms of supply and demand of the nuclear material. According to the World Nuclear Association, world mine production of uranium has expanded significantly since 2005.

The demand for uranium continues to grow. Uranium is considered to be a cleaner power source in a world struggling to reduce greenhouse gas emissions in the face of global warming.

In 2014 the total world production of uranium was 56,217 tonnes, a drop from the previous year’s 59,370 tonnes. The top uranium-producing countries were Kazakhstan, Canada and Australia, all of which saw a decrease in output. However, the decline was not limited to the largest producers, but was felt across the world. Demand is expected to grow significantly in coming years as reactors in Japan start to come back online post-Fukushima and as China moves away from coal and towards uranium, in an effort to reduce the amount of carbon dioxide the country produces.

This looming deficit makes uranium exploration companies and miners currently producing optimistic that prices will recover by 2020. Especially considering there aren’t enough new projects coming up to fill the massive supply gap. While there are other sources of energy currently being utilized, many countries, particularly China and India, have been looking to reduce their carbon footprint and improve their air quality, making uranium an ideal option.

Why Invest in Uranium?

As mentioned, the demand for uranium is increasing annually and as it stands, there is not enough being produced globally to ensure this demand is met. In spring 2015, there were 26 nuclear reactors being constructed in China, with more being proposed. In order to fuel these, China has been seeking acquisition opportunities in other parts of the world, particularly assets in Kazakhstan, Canada and Australia. This will mean great things moving forward for uranium company’s exploring and operating in those regions. Then there is the US, who is the world’s largest consumer of uranium. It has been sourcing a majority of its uranium from other countries. In fact, in 2014 the US purchased 94 percent of its uranium from foreign sources and considering the countries supplying it are mostly Russian-friendly, it shows that the US is losing its influence in the global uranium sector.

With the uranium market shifting on a global scale as more countries look to convert to nuclear power, it also means major supply deals will be coming down the pipes. Major global players like Canada and the United Kingdom have started to increase their nuclear cooperation, while the US has decided to terminate a state of national emergency against Russia following the end of the HEU Agreement between the two countries. And lets not forget Australia, which currently has the world’s largest known uranium reserve. While the laws there against uranium mining in certain states has hindered its potential, there are talks that the nuclear boom from Asia could give it a much-needed reboot.

Uranium: Not without its controversy

While uranium is a cleaner and more efficient power source compared to oil and coal, opponents point fingers at environmental and security concerns. To address the former, industry leaders point to innovations in uranium mining and enrichment, stricter industry standards, guidelines, and regulations, and a new generation of nuclear power plants. And grassroots resistance from aboriginal and environmental groups forces uranium companies to cooperate with local communities in a fair and transparent manner.

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