Uranium Mining in Australia

Who are the major uranium exporters in Australia?

Uranium mining and treatment in Australia began in the 1950s, spurred by the development of nuclear weapons. However, it was mainly used for generating electricity. Australia does not have, and has never had, nuclear weapons in its arsenal.

Australia’s federal government is opposed to nuclear energy and does not want to become a nuclear weapons state. Since Australia doesn’t have a nuclear power program of its own, and has only one nuclear power plant, the country exports all of the uranium it produces.

As a member of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), Australia only sells uranium to fellow NPT member nations, and has safeguards in place to ensure that the energy it exports to these nations is used only for power generation.

The majority of Australia’s uranium exports are used for electrical power utilities in the US, France and China.

In fact, uranium accounts for 17 percent of Australia’s energy exports, according to the World Nuclear Association. While Australia’s number of active uranium mines has diminished, there are still prospects for new exploration efforts.

Vimy Resources' (ASX:VMY) Mulga Rock project in Western Australia, for example, has passed the milestone for substantial commencement, with the company aiming for production in 2025.

Canadian company Cameco (TSX:CCO,NYSE:CCJ) requested an extension from the Western Australia government for its proposed uranium mine in Yeelirrie. However, in 2022, the extension was not approved.

Even as production moved back up to around 6,000 tonnes per year, uranium prices are also rising and may continue to do so. If this trend continues, uranium exploration prospects may grow in the country. Export earnings of the chemical element are expected to grow to AU$900 million in 2024-2025, according to the Department of Industry, Science, Energy and Resources.

The US, which produces about 30 percent of the world’s nuclear energy, is the final destination for more than half of Australia’s uranium exports. The East Asian markets are expected to grow in significance as export markets for Australia’s uranium industry due to rising energy demand.