2023-12-15 19:57:19
The price of uranium reached its highest level in nearly 17 years on Friday, driven by constrained supply and accelerating demand, once morest a backdrop of renewed interest in nuclear energy.
The benchmark contract on uranium oxide, called U3O8 (named following its chemical formula) and which, once enriched, serves as nuclear fuel, rose to $85.75 per pound (around 450 grams) , a first since January 2007.
This escalation in prices is the result of a combination of factors, notably the rebound in demand, linked to the energy transition, but also to fears relating to the supply of oil and gas following the invasion of Ukraine by Russia.
Belgium, France, the United Kingdom and Romania have recently authorized the extension of the operation of several existing power plants, as have the United States. New projects have also been launched, particularly in China, but also in India, Turkey and Egypt.
At the same time, “the supply has not really kept up,” explains Jonathan Hinze, president of the nuclear industry research firm UxC.
He cites in particular Kazakhstan, by far the world’s leading producer of uranium (43% of supply in 2022, according to the World Nuclear Association), which faced logistical problems, in particular a shortage of acid. sulfuric, used for extraction. The military coup in Niger (4% of production in 2022) and a possible American embargo on Russian uranium (5%) also worry the market.
To supply the market, mines are reopening in several places around the world, such as in Utah, in the United States. “Mining will meet demand, but it’s not a process that happens overnight. It will take years,” warns Jonathan Hinze. For the time being, “it looks like prices will continue to rise.”
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