Uranium surges to 12-year high on coup, decarbonisation
afr.comThe price of uranium surged to its highest price in 12 years amid fears of a supply crunch instigated by a coup in Niger, and Canadian miner Cameco’s decision to curtail production, just as demand for the commodity is poised to increase.
The supply crisis comes as energy utilities look to nuclear power to cut their reliance on Russian uranium and gas, following Moscow’s invasion of Ukraine, and decarbonise power grids reliant on fossil fuels.
The commodity known as yellow cake leapt to $US65.50 ($101.40) a pound, setting a fresh high for the post-Fukushima era this week. The nuclear disaster cruelled the sector in March 2011.
Uranium spot prices have crept up to 12-year highs. Tamara Voninski
“Cameco is struggling to ramp up their production after curtailing it through COVID-19,” said Guy Keller, a fund manager at Tribeca. “You’ve also seen political upheaval in Niger put a question mark around supply, and Peninsula in the US saying their project is delayed by two years.”
The spot price was further propelled by a bullish report from the World Nuclear Association forecasting global uranium demand would double from 65,650 tonnes in 2023 to 130,000 tonnes by 2040.
This comes as North American and European atomic energy companies are putting further pressure on available ore, looking to ink long-term uranium contracts outside of Russia, which is still a major provider of ore and enriched uranium to the US.
Mr Keller said many of the atomic utilities were “self-sanctioning”, meaning they are actively seeking non-Russian supply.
Reactors which were set to shut down in Japan and Germany have reversed course, introducing further pressure to the dynamic, and while this “is small compared to increasing Chinese demand, it is a
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