After declining from the mid-1990’s onward, domestic uranium product is finally starting to turn around. If pricing remains elevated, it’s likely that this is just the beginning of a change in the U.S. uranium industry, according to this recent article on ResourceInvestor.com.
When it comes to uranium mining, it’s expected that the United States would play second fiddle to world heavy weights like Canada and Australia.
But thanks to years of depressed pricing and an unpalatable political climate, the U.S. actually lags behind many developing nations (many of whom have significantly lower reserves) in uranium production.
In fact, even though the United States accounts for about 7% of the world’s uranium reserves, according to the World Nuclear Association, it is currently responsible for only 2.5% of worldwide production from mines.
Worldwide annual uranium demand currently far outstrips supply from mines - with the shortfall currently being met by recycled uranium for nuclear warheads. But, with uranium power requirements on the rise, it’s almost certain that increased mine openings are in our future.
In the next decade, the American uranium industry is in for a massive change.
Thanks to re-emerging domestic support for nuclear power, and a pricing environment that allows for profitable extraction, the American uranium mining industry is finally finding support after nearly twenty years in decline.
Domestic Uranium Mining - It’s all About Pricing
The biggest issue facing domestic uranium mining in recent years was the depressed demand – and pricing – in the heavy metal’s market. Unlike countries with high-grade uranium deposits like Kazhakstan and Australia, much of the United States’ uranium is based in low-grade sandstone deposits.
Located primarily in the western states of Wyoming, Colorado, Utah, New Mexico and Arizona, much of America’s uranium can only be extracted with a comfortable profit margin with spot prices over $35 to $40 per pound. With pricing currently topping $46/lb., we’re finally entering the “sweet spot” for U.S. production.
With high oil prices and a desire for increased energy independence, the political environment for uranium mining is also seeing a boost.
Finally, although American deposits may not be as profitable as those located in various former Soviet republics and throughout parts of Africa, the political stability of the U.S. is an attractive bonus.
After declining from the mid-1990’s onward, domestic uranium product is finally starting to turn around. If pricing remains elevated, it’s likely that this is just the beginning of a change in the U.S. uranium industry.
Reflecting this change, action among the small number of publicly traded uranium companies involved in the U.S. uranium game has begun to heat up.
When it comes to uranium mining, it’s expected that the United States would play second fiddle to world heavy weights like Canada and Australia.
But thanks to years of depressed pricing and an unpalatable political climate, the U.S. actually lags behind many developing nations (many of whom have significantly lower reserves) in uranium production.
In fact, even though the United States accounts for about 7% of the world’s uranium reserves, according to the World Nuclear Association, it is currently responsible for only 2.5% of worldwide production from mines.
Worldwide annual uranium demand currently far outstrips supply from mines - with the shortfall currently being met by recycled uranium for nuclear warheads. But, with uranium power requirements on the rise, it’s almost certain that increased mine openings are in our future.
In the next decade, the American uranium industry is in for a massive change.
Thanks to re-emerging domestic support for nuclear power, and a pricing environment that allows for profitable extraction, the American uranium mining industry is finally finding support after nearly twenty years in decline.
Domestic Uranium Mining - It’s all About Pricing
The biggest issue facing domestic uranium mining in recent years was the depressed demand – and pricing – in the heavy metal’s market. Unlike countries with high-grade uranium deposits like Kazhakstan and Australia, much of the United States’ uranium is based in low-grade sandstone deposits.
Located primarily in the western states of Wyoming, Colorado, Utah, New Mexico and Arizona, much of America’s uranium can only be extracted with a comfortable profit margin with spot prices over $35 to $40 per pound. With pricing currently topping $46/lb., we’re finally entering the “sweet spot” for U.S. production.
With high oil prices and a desire for increased energy independence, the political environment for uranium mining is also seeing a boost.
Finally, although American deposits may not be as profitable as those located in various former Soviet republics and throughout parts of Africa, the political stability of the U.S. is an attractive bonus.
After declining from the mid-1990’s onward, domestic uranium product is finally starting to turn around. If pricing remains elevated, it’s likely that this is just the beginning of a change in the U.S. uranium industry.
Reflecting this change, action among the small number of publicly traded uranium companies involved in the U.S. uranium game has begun to heat up.
