Western Uranium Corporation (CSE:WUC) (OTCQX:WSTRF) (“Western”) wishes to highlight the positive uranium news released out of Kazakhstan. Subsequent to the 2008 Global Financial Crisis and 2011 Fukushima nuclear accident, global uranium demand has stagnated causing oversupply which has depressed market prices. Uranium production cuts have been anticipated and in this fourth quarter these have been put in place by a number of major uranium producers for 2018.
Kazatomprom, the world’s largest uranium producer has announced its intention to reduce planned production by 20%.
According to the Kazatomprom announcement, this action will remove over 8 million pounds from the market in 2018 and approximately 24 million pounds of uranium over a three year period. In making this announcement, Kazatomprom cited the goal of better aligning their production levels with market demand.