Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital
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Uranium Report 2021 Everything you need to know about uranium!
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2 3
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44 5
Table of Contents Imprint
Editor
Swiss Resource Capital AG
Disclaimer ���������������������������������������������������������������������������������������������������������������������������������������02 Poststr. 1
9100 Herisau, Schweiz
Table of Contents | Imprint�������������������������������������������������������������������������������������������������������07 Tel : +41 71 354 8501
Fax : +41 71 560 4271
Preface����������������������������������������������������������������������������������������������������������������������������������������������09
Invest with the commodity professionals
info@resource-capital.ch
www.resource-capital.ch
57-million-pound U3O8 supply deficit in 2020 melts inventories,
modular small reactors provide future demand expansion�������������������������������10 Editorial staff
Jochen Staiger
Interview with Dr. Christian Schärer – Tim Rödel
Manager of the Uranium Resources Fund and Partner of Incrementum AG ����21
Layout/Design
Interview with Scott Melbye – Executive Vice President of Uranium Energy, Frauke Deutsch
Commercial V.P. of Uranium Participation Corp. and Ex-Advisor
to the CEO of Kazatomprom���������������������������������������������������������������������������������������������������27 All rights reserved. Reprinting
material by copying in electronic
form is not permitted.
You do not have to be a stock market professional SRC Mining & Special Situations Zertifikat Company Profiles
Editorial Deadline: 04/30/2021
to make wise investment decisions. ISIN: DE000LS9PQA9
Invest together with Swiss Resource Capital AG and WKN: LS9PQA Blue Sky Uranium������������������������������������������������������������������������������������������������������������������������34 Cover: shutterstock.com
Asset Management Switzerland AG in the mega- Currency: CHF/ Euro* Page 13: US Nuclear Regulatory
GoviEx Uranium����������������������������������������������������������������������������������������������������������������������������38 Commission
trend commodities. Since 05.03.2020 the experts‘ Certificate fee: 0.95 % p.a. Page 18: NASA
specialist knowledge has been available as a Performance fee: 15 % p.a. International Consolidated Uranium������������������������������������������������������������������������������������42 Page 20: rawpixel
Wikifolio certificate: *Trading in Euro is possible at the Euwax in Stuttgart.
Page 32: vlastas@shutterstock.com
Skyharbour Resources��������������������������������������������������������������������������������������������������������������46
Back:
Currently the following titles are represented in the SRC Mining & Special Situations Certificate (5/2021): ENDEAVOUR SILVER CORP. | Uranium Energy����������������������������������������������������������������������������������������������������������������������������50 # 1: rawpixel
# 2: NASA
MAPLE GOLD MINES LTD | FREE MCMORAN COP | COPPER MOUNTAIN MINING CORP. | MAG SILVER CORP. | SKEENA RES LTD NEW | URANIUM
Uranium Royalty���������������������������������������������������������������������������������������������������������������������������55 # 3, 4: flickr.com/photos/nrcgov
ENERGY CORP. | FRANCO NEVADA | SIBANYE STILLWATER LTD. | RIO TINTO | R.DUTCH SHELL B | AGNICO EAGLE | BHP BILLITON | ISOENER-
GY LTD. O.N. | FIORE GOLD LTD | ANGLO AMERICAN | VIZSLA SILVER CORP. | OSISKO GOLD ROYALT. | KARORA RES INC. | OCEANAGOLD CORP. All images and graphics are, unless
otherwise stated, by the companies.
| TOTAL FINA ELF SA B EO 10 | MILLENN.LITHIUM CORP. | KUYA SILVER CORP. | CHEVRON | TRILLIUM GOLD MINES INC. | CALEDONIA MINING
O.N. | ENWAVE | GOLDMINING INC. | CANADA NICKEL CO. INC. | FURY GOLD MINES LTD. | NEWMONT CORP. DL 1,60 | AURANIA RES CAD R.S. | Charts 05/12/2021
JS Charts by amCharts
KORE MINING LTD. | BLUESTONE RESOURCES | VICTORIA GOLD CORP. | GOLD TERRA RESOURCES |
HANNAN
6 METALS LTD | BARRICK GOLD CORP. | ADVENTUS MNG CORP. | MAWSON GOLD LTD | 7
OSISKO METALS INC. O.N.
Preface
The whole world of
commodities in one App:
Dear Readers,
Commodity-TV With this update of the Uranium Report 2021
we are already in the fifth year of this special
report series. Uranium has recently shown re-
and not as a recommendation to buy, as there
are only very few listed companies left at all.
Raw materials are the basis of our entire eco-
lative strength again, which can be attributed nomic life. Without raw materials, there are no
to the great imbalance of a decreasing supply products, no technical innovations and no
and a simultaneous increasing demand. Wi- real economic life. We need a reliable and
thout the emission-free and at the same time constant basic energy supply for our highly
base-load capable nuclear power, which is industrialized world.
based on the „fuel“ uranium, many countries Jochen Staiger is founder and CEO
will not only have a huge problem in the stab- Swiss Resource Capital AG has made it its bu- of Swiss Resource Capital AG,
le basic energy supply and, due to the elec- siness to provide interested people with com- located in Herisau, Switzerland. As
tromobility revolution, a real power supply prehensive information about metals, commo- chief-editor and founder of the first
problem in itself, but will completely lose si- dities and various listed mining companies. two resource IP-TV-channels
ght of the goal of a world that is as CO2-free On our website www.resource-capital.ch you Commodity-TV and its German
as possible. The expansion of the hybrid and will find more than 30 companies from various counterpart Rohstoff-TV, he reports
fully electric model range is progressing ra- commodity sectors as well as a lot of informa- about companies, experts, fund
pidly, and the development of the charging tion and articles about commodities. managers and various themes
infrastructure will really explode in the coming around the international mining
years. With our special reports we want to give business and the correspondent
you insights and inform you comprehensi- metals.
This raises the question of where all the green vely. In addition, you always have the chance
electricity is to come from. Nuclear power will to inform yourself free of charge through
be the only viable solution for many years to our two commodity IPTV channels www.
come, since solar and wind power will not be Commodity-TV.net & www.Rohstoff-TV.net.
able to meet the base load as long as no ade- For the mobile everyday life, you can down-
quately large storage facilities for electricity load our newly developed Commodity-TV
from renewable energy sources are created. In App for iPhone and Android on your smart-
Germany in particular, this question is even phone. Here you will get real-time charts,
more pressing as nuclear power is being shut stock prices, indices and the latest videos
down and coal is also disappearing. Once automatically on your cell phone. My team
again, it is worth taking a look at China, where and I hope you enjoy reading the Special Re-
a balanced mix of photovoltaics, hydroelectri- port Uranium and we hope to provide you
city, wind power and, above all, nuclear power with lots of new information, impressions
is being used. China has understood that they and ideas. Tim Rödel is Manager Newsletter,
need a reliable, clean and cheap power sup- Threads & Special Reports at SRC
ply, and nuclear power is the perfect solution. AG. He has been active in the
This report is intended to provide the gentle Yours, Jochen Staiger commodities sector for more than
reader with an overview of the uranium indus- 15 years and accompanied
try and the real facts, as well as the world‘s several chief-editor positions, e.g. at
• CEO and expert interviews energy supply from nuclear power. Rohstoff-Spiegel, Rohstoff-Woche,
Free download here: Rohstoffraketen, the publications
• Site-Visit-Videos The closure of many large uranium mines in Wahrer Wohlstand and First Mover.
recent years could be the ignition point for ri- He owns an enormous commodity
• Reports from trade shows and conferences around the world sing uranium prices in the future. As before, expertise and a wide-spread
supply is falling, and demand is rising. network within the whole resource
• Up-to-date mining information
sector.
• Commodity TV, Rohstoff-TV and Dukascopy TV created by Of course, we also present some interesting
companies in the industry with facts and figu-
• Real-time charts and much more! res. This is to be understood as a suggestion
9
Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz | www.resource-capital.ch | info@resource-capital.ch
57-million-pound U3O8 supply deficit in 2020 melts
inventories, modular small reactors provide future
demand expansion
57 million pounds of U3O8, or the equivalent empty, thus increasing the pressure on the
of about 32.5% of total annual demand, glo- utilities.
Base load capability, what is it?
bal uranium production fell short of demand In addition to this, the development of
in 2020, with 47 million pounds of U3O8 pro- so-called „Small Modular Reactors“ (SMR) is Base load capability is the ability of a power plant to provide continuous, reliable electri-
jected for 2021. This means that the uranium progressing rapidly. These are nuclear fissi- cal power. This includes nuclear power plants, coal-fired power plants, gas-fired power
sector will have a supply deficit of more than on reactors that are smaller than conventio- plants, oil-fired power plants and steam power plants fired with substitute fuels. Com-
100 million pounds of U3O8 for 2020 and nal reactors, can be manufactured in a facto- bined heat and power plants, biomass and biogas power plants can also be base-load
2021 alone. And yet, the uranium spot price ry and then moved to an assembly site. capable under certain conditions, although fossil or renewable raw materials must also be
continues to remain at exceedingly low le- Among others, a company owned by Micro- fired for this purpose. The only base-load-capable electricity generation from renewable
vels around US$30 per pound. This is likely soft founder Bill Gates is also working on energy is by means of hydroelectric power plants, but this often requires a major interven-
due primarily to high stockpiles that have implementing such reactors, one of which is tion in nature.
been built up since the Fukushima disaster already in use in ship form in northern Rus- Photovoltaic and wind power plants are not base-load capable due to their often highly
of 10 years ago and have not yet been fully sia. This should create a huge surge in de- fluctuating generation and thus feed-in.
depleted. Until 2016, mines around the wor- mand for uranium in the future, because the-
ld kept producing record quantities, so- re is no way around nuclear power as the
metimes even at mining costs above the only base-load-capable, emission-free ener-
spot price. The fact that this system worked gy source in the coming decades if the cli-
is due to the procurement methodology of mate targets set around the globe are to be Both cannot be achieved at the same time With 94 reactors in operation, the USA is cur-
the uranium market. Only small quantities achieved. by burning coal and oil. The alternative is re- rently the leading nuclear power nation. Ho-
are traded at the spot price, most of which newable energies, which, however, require wever, emerging countries such as China and
are by-products of the mining of other raw an enormous amount of time and money India are in particular need of more and more Overview of currently operating
materials. By far the greater part is traded via Nuclear energy is currently the and, in addition, are not even close to base energy and have been focusing on a massive reactors (blue) and net electrical power
only base-load-capable energy load capability without larger electricity sto- expansion of their nuclear power capacities (light blue). (Source: www.iaea.org/
source that can manage the balan- rage facilities, or nuclear power, which can for some time now. PRIS)
cing act between an enormously provide a great deal of energy in a CO²-neu-
increasing demand for electricity tral manner. This possibility of fast and al-
and clean energy production! most clean energy generation has long been
Uranium is irreplaceable for this! recognized not only by climate protectionists
such as Bill Gates or Greta Thunberg, but
Global energy demand has multiplied since also by many countries worldwide, who are
the late 1980s. About 10% of the world‘s to- now pushing the construction of new nucle-
tal energy demand is currently met by nucle- ar power plants.
ar power. However, fossil fuels such as coal
and crude oil are still mainly burned to gene-
rate energy. The increasing demand for a re- The number of nuclear power
duction in CO² emissions and the ever more reactors worldwide has reached a
noticeable phenomenon of „global warming“ record level
are prompting energy-guzzling industrialized
Uranium price development over the long-term contracts. Recently, many power nations and emerging economies in particu- Despite the fact that nuclear power has been
last 5 years(source: own presentation) plant operators tried to secure their supplies lar to increase their energy efficiency and opposed at least since the Chernobyl disas-
at the cheap spot price in the short term. Ho- improve their CO² balance. The second im- ter and even more so after the events sur-
wever, in view of an overflowing supply defi- portant point is the ongoing electro revoluti- rounding the nuclear plants in Fukushima,
cit, they are likely to return to the negotiating on, which will not only allow us to travel al- Japan, the number of plants worldwide is al-
table shortly and renegotiate the expiring most 100% electrically in a few years, but at ready at a record high. 31 countries currently
contracts (around 75% of total demand will the same time will also bring a huge, additi- (as of April 2021) operate 444 reactors with a
soon no longer be secured by contract). The onal surge in demand for clean energy. It is total net electrical capacity of about 394 giga-
first signs of this are already evident. Until estimated that the demand for electricity will watts. Two more reactors have been added
then, even producers, future producers as increase by 200% compared to 2020. since the beginning of 2021 alone, and cons-
well as ETFs are buying the spot market truction has started on two more.
10 11
It is therefore not surprising that 52 additional The highest uranium grades are achieved in ISR production
nuclear reactors with a total net electrical out- unconformity-bound deposits with average
put of around 54.5 gigawatts are currently un- uranium grades of 0.3 to 20%. The highest In the ISR method, water and small amounts
der construction. Planning has already been grades are over 70% U3O8! of CO2 and oxygen are injected into the
completed for around 120 additional ones, According to the International Atomic Energy sandstone layers with the help of so-called
and more than 300 others are in the pipeline. Agency (IAEA), the largest uranium ore reser- injection wells, the uranium is dissolved out
ves are in the USA, Niger, Australia, Kazakhs- and pumped back to the surface for further
tan, Namibia, South Africa, Canada, Brazil, processing with the help of so-called reco-
Russia, Ukraine and Uzbekistan. very wells. The entire process therefore takes
place completely underground. The advanta-
ges of this process are therefore obvious: the-
Uranium mining re is no need for major earthmoving as in
open-pit operations, and there are no tailings
piles or discharge ponds for heavy metals
In uranium mining, a distinction is basically and cyanides. Only the wells are visible on the Description of in-situ mining:
made between two processes: Conventional surface, and the land around the wells can (1) pump a chemical solution - typically
extraction and extraction by in-situ leaching continue to be farmed without restrictions. groundwater mixed with sodium
Overview of reactors currently under construction (blue) and the or in-situ recovery (ISR). The exact extraction The ISR process also makes low-grade depo- bicarbonate, hydrogen peroxide, and
corresponding net electrical capacity (light blue) per country method depends on the properties of the ore sits economically mineable, and capital costs oxygen - into the layer of earth
Source: www.iaea.org/PRIS. body, such as depth, shape, ore content, tec- for mine development are greatly reduced. containing uranium ore. The solution
tonics, type of surrounding rock and other Moreover, the entire process can be carried dissolves the uranium from the deposit
factors. out with a minimum of labor, which also dra- in the ground and is then pumped back
stically reduces operational costs. According to the surface through recovery wells
to a study by the World Nuclear Association, (2). Monitoring wells (3) ensure that
Conventional production 25% of uranium mined outside Kazakhstan
Uranium basic knowledge
nothing escapes from the drilling area.
recently came from ISR mines. (Source: Wikimedia Commons,
The majority of uranium is extracted by deep Courtesy of the NRC)
mining. The deposits are accessed via shafts,
Uranium is one of only two ele- [RN] 5f36d17s2
adits, ramps or spirals. Problems are often
ments for which nuclear fission 92 posed by the penetration of mine water and
U
chain reactions are commercially the so-called ventilation (technical measures
possible to supply mines with fresh air). The exact mi-
ning method is chosen according to the cha-
Uranium is named after the planet Uranus racteristics of the deposit. Above all, the sha-
and is a chemical element with the element Melting Point 1406 K pe of the ore body and the distribution of the
symbol U and the atomic number 92. Urani- Boiling Point 4203 K uranium in it are decisive factors. In deep mi-
um is a metal whose all isotopes are radioac- URANIUM ning, an ore body can be mined in a targeted
tive. Naturally occurring uranium in minerals manner, resulting in much less overburden
consists of about 99.3% isotope 238U and than in open pit mining.
0.7% 235U. Near-surface or very large ore bodies are pre-
Occurrence ferably extracted by open-pit mining. This al-
The uranium isotope 235U can be fissioned lows the use of cost-effective large-scale
by thermal neutrons and is therefore, apart Uranium does not occur in pure form in na- technology. Modern open pits can be from a
from the extremely rare plutonium isotope ture, but always in oxygenated minerals. The- few meters to over 1,000 meters deep and
239Pu, the only known naturally occurring re are a total of about 230 uranium minerals several kilometers in diameter. Open pit mi-
nuclide with which nuclear fission chain reac- that can be of local economic importance. ning often produces large quantities of over-
tions are possible. For this reason, it is used There is a wide range of uranium deposits burden. As in deep mining, large quantities of
as a primary energy source in nuclear power from magmatic hydrothermal to sedimentary water may have to be lifted for an open pit,
plants and nuclear weapons. types. but ventilation is less of a problem.
12 13
The current demand situation
The USA want to boost nuclear Kingdom will replace France as the current Turkey and Indonesia. In early March 2020,
power again number two in nuclear power in a few years. the United Arab Emirates became the 31st
The Chinese government plans to build more nation to enter nuclear energy production.
With 94 reactors, the USA has by far the lar- than 80 new nuclear reactors in the next 15 Another 3 reactors are under construction
gest active nuclear power plant fleet in the years and over 230 new nuclear reactors by there. South Korea currently has 4 plants un-
world. Nevertheless, the USA is threatened 2050. By 2030, a total of 110 reactors are to der construction.
with a collapse in energy supply. The United be connected to the grid, by which time the
States is still the country with the highest per USA will have been replaced as the current
capita consumption of electricity in the wor- leader. A total of 14 nuclear reactors are cur- Long-term supply contracts to
ld. And Americans‘ hunger for energy is gro- rently under construction, more than in any expire shortly
wing. Many of the coal-fired power plants other country.
that date back to the 1950s and 1960s are The previous cycle of contracting, dominated
operating inefficiently and uneconomically. by the uranium price spikes of 2007 and
They will have to be taken off the grid sooner India massively expands nuclear 2010, has led plant operators to enter into
rather than later. Electricity consumption, on program contracts with higher price levels and very
the other hand, is rising steadily. So, the USA long terms of around 8 to 10 years. On the
has no choice but to increase the number of India is following a similar path. The second one hand, these old contracts are expiring,
its nuclear reactors in the coming years. Ac- most populous country in the world is plan- but on the other hand, plant operators have
cordingly, the expansion of the nuclear pow- ning to expand its nuclear energy capacity by not yet looked for replacements for these
er plant fleet is also part of the „Green New 70 gigawatts. supply volumes. As a result, the forward con-
Deal“ initiated by President Biden, which is Currently, a total of 23 Indian nuclear reac- tracts of the plant operators are declining
intended to lead the country toward CO2 tors are running at full load (7 gigawatts). One sharply, and thus the demand volumes for
neutrality. Alongside the expansion of wind of them was recently connected to the grid. which there is not yet a contractual obligati-
and solar energy, nuclear power is the top Currently, 6 nuclear reactors are under cons- on, but which will have to be contractually
priority. truction in India, with 40 more to follow by secured in the future, are also increasing. Un-
In recent years, more than 60 U.S. nuclear 2050. met demand is expected to exceed one billi- Overview of reactors currently in
reactors have applied for lifetime extensions on pounds of U3O8 over the next 10 years. At mal“ long-term contracts is likely to put tre- operation (blue), reactors currently shut
to 60 years of total operation. In addition, the same time, more than 75% of expected mendous pressure on both long-term and down (gray) and reactors under
there are about 40 applications to build new Russia with increasing nuclear reactor demand through 2025 is not contrac- spot prices. There are therefore now increa- construction (light blue).
nuclear power plants. To date, however, only capacity tually secured. For a thinly traded commodity sing signals among international plant opera- (Source: www.iaea.org/PRIS)
2 plants are under construction, and another such as uranium, this return to more „nor- tors towards increased buying activity.
20 are in the concrete planning phase. Russia has also announced a massive ex-
pansion of its nuclear power plants. The
country currently operates 38 nuclear reac-
China goes full throttle in reactor tors with about 28.5 gigawatts. 3 plants are
construction in the construction phase. In addition, Russia
plans to build more than 40 additional nucle-
For several years now, it has been the giant ar power plants, which will increase the share
empire of China that has been setting the of nuclear energy in Russia‘s energy mix from
pace in the construction of nuclear power the current 15% to more than 20%.
plants. 50 reactors with a total net electrical
capacity of 47.5 gigawatts are operated by
the Middle Kingdom, which until now has pri- Increasing global expansion of
marily used coal to generate electricity. Of nuclear energy
these, 11 new reactors alone have come on- Overview of the age of currently
line since the beginning of 2018. Nuclear po- In addition to the 31 nations that already operating reactors. Many will (have to)
wer expansion in China is therefore enor- have nuclear reactors on the grid, another 17 be replaced by more powerful ones in
Age, years
mous and taking place at breathtaking countries are planning to install nuclear pow- the coming years.
Size corresponds to the number of reactors
speed! It is to be expected that the Middle er plants. Among them are Egypt, Jordan, Source: www.iaea.org/PRIS
14 15
The current supply situation
Uranium production declines Former producing nations Kazakhstan – the new uranium Since 2017, Kazatomprom reduced its urani-
sharply struggle with weak uranium prices superpower um production by about 15% and Canada by
about 45%. Furthermore, Cameco closed its
In 2020, about 118 million pounds of U3O8 The established uranium-producing nations While almost all established uranium pro- Cigar Lake mine for one year in March 2020
were produced as primary uranium from mi- of Australia, Canada, Russia and Niger were ducers are having difficulty rebuilding or ex- due to Corona. Additionally, Orano‘s McCle-
nes worldwide. This was significantly less already having problems expanding their pro- panding their uranium production, one region an Lake processing plant had to close as well.
than at the peak in 2016, when 162 million duction before the Corona crisis. All four has now moved past all other countries to the In addition, there are closures at Moab Khot-
pounds of U3O8 were produced. countries combined produced just under top of uranium production: Central Asia. The- seng in South Africa and at the Chine-
The supply side is in a state of upheaval, 19,445 tons of uranium in 2019. In 2009, the re, Kazakhstan in particular has been able to se-owned Husab and Rössing mines in Nami-
especially in the uranium sector. Secondary figure was 28,000 metric tons of uranium. In multiply its uranium production in the last ten bia, to name only the most important ones.
supply from Russia‘s disarmed nuclear stock- some cases, mines were shut down due to years. From 2000 to 2019, uranium producti- The spot market, whose supply is mainly
piles is becoming less and less important. the weak uranium spot price or lack of further on in the former Soviet republic rose from made up of uranium mined as a by-product in
Whereas in 2006 37% of demand was still reserve availability (as was recently the case 1,870 to over 22,808 metric tons. As a result, other mines, has also recently seen a decline
covered by disarmed nuclear weapons, this at the Cominak and Ranger mines). Kazakhstan also overtook the previous leader in supply due to various mine closures.
figure is now only around 3%. Canada in 2009 and is now responsible for
around 41.6% of total global uranium produc-
US uranium production no longer tion.
Deposits are stable – exists
There is an acceptable range at
higher uranium prices The U.S. uranium industry is a shadow of days Massive production cuts to
gone by. Over the past 45 years, virtually no- stabilize prices
At a market price of US$40 per pound of ura- thing has been invested in developing new
nium, experts estimate that there are just un- deposits, and nearly 95% of the uranium nee- Although Kazakhstan is one of the nations
der 715,000 metric tons of economically re- ded has been extracted from the disarmament that can currently mine uranium at the lowest
coverable uranium. With annual consumption programs. U.S. nuclear reactors already cost, the country is no longer prepared to sell
currently at around 68,000 metric tons of ura- consume about 21,000 tons of uranium an- off its uranium deposits at rock-bottom
nium, these deposits would last for just 10.5 nually. Accordingly, an increase in capacity prices. In early 2017, the state-owned Kaz-
years, provided the market price remained would also require an increase in the amount atomprom announced that it would cut its
constant at at least US$40 during this period of uranium needed. The World Nuclear Asso- own uranium production by at least 20% in
and demand also remained constant. Howe- ciation (WNA) estimates that by 2035, about 2017. In May 2018, Kazatomprom announced
ver, demand will inevitably increase. 40,000 metric tons of uranium will be needed further production cuts. In addition, producti- Unmet need for supply(Graphic: own
annually in the U.S. alone. Even at the peak of on had to be further reduced due to Corona. representation)
If the market price for uranium were to rise U.S. uranium production in the 1960s and But Kazatomprom is not the only uranium Huge gap in supply was already
and justify extraction costs of US$80 per 1970s, it would not have been possible to pro- producer to cut production in light of the present before Corona
pound of uranium, about 1.28 million tons of duce such a quantity from the own facilities. weak uranium price. Uranium major Cameco
uranium could be mined economically. Range U.S. uranium production reached its previous also announced production cuts and closed Even before the Corona pandemic, the supply
at current consumption: 19 years. peak in 1980, when about 29,000 tons of ura- its McArthur River mine and Key Lake facili- deficit was about 40 million pounds of urani-
nium were extracted from the ground. After ties indefinitely in January 2018. The Rabbit um per year. In 2020, the supply deficit was
If the uranium price were US$130 per pound, the end of the Cold War, disarmed nuclear we- Lake mine was also closed, both of which are about 57 million pounds of U3O8, or just un-
about 3.86 million tons of uranium could be apons in particular became the most import- among the ten largest uranium mines in the der one-third of global annual demand. Thus,
mined economically. The known reserves ant source of U.S. uranium requirements. This world. McArthur River was the mine with the most of the current demand is being met from
would then last for about 56 years at current led to a decline in U.S. uranium production to, second highest uranium production and gra- stockpiles, which are thus rapidly running out.
consumption levels. most recently, less than 500 tons of uranium des in the world. The temporary closure took A de facto supply shortfall has already exis-
annually. As a direct result, much of the infra- 10% of the world‘s total production off the ted since 2017, with consumption at the cur-
structure and licensed production facilities market in one fell swoop. In addition, Cameco rent level of 444 nuclear reactors worldwide
were simply closed or completely dismantled. has itself been acting as a uranium buyer for at about 175 million pounds of U3O8, of which
Currently, there are only a few mines left in some time to service long-term, higher-grade only about 118 million pounds is covered by
Texas, Arizona and Wyoming, but most of the- supply contracts with corresponding uranium global uranium production (excluding the
se have been shut down. volumes at spot prices. special effect of Corona).
16 17
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