Australian uranium hopefuls bolstered by global uranium production predictions
Experts are predicting uranium production to increase by more than 3% in 2021, despite the closure of the Ranger mine in Northern Territory in January.
Global production is expected to grow at a compound annual growth rate of 6.2% over the 2021-2025 period.
Global uranium production is tipped to increase by 3.1% in 2021, bolstering the hopes of a handful of Australian uranium hopefuls.
Experts at data analyst consultancy GlobalData have predicted 51,200 tonnes of uranium will be produced this year, largely thanks to the return of production at Cigar Lake in Canada and increased output growth from leading uranium producers Kazakhstan and Russia.
The production increase comes despite a predicted 21.2% drop in Australian uranium production due to the renowned Ranger mine in the Northern Territory closing down after 40 years of service.
Market on road to recovery
Associate project manager at Global Data Vinneth Bajaj said uranium would begin its recovery this year after several years of decline.
“Global uranium production has been limited in recent years, mainly due to a sluggish market. This was further impacted by the COVID-19 pandemic from early 2020,” he said.
“In fact, global production of uranium fell by 9.2% to 49,700 tonnes in 2020, with the most significant declines observed in Canada (43.9%) and Kazakhstan (14.6%) – globally, almost 60% of uranium originates from these two countries.
Uranium production
“Global uranium production is expected to grow at a compound annual growth rate (CAGR) of 6.2% over the forecast period (2021-2025) to reach 65,200 tonnes in 2025.
“Kazakhstan, which holds some of the world’s largest uranium deposits, is expected to remain the world’s largest supplier for the next few years.
“With potential open pit uranium mines, Namibia is also expected to remain a prominent supplier of uranium to the global markets.
“Furthermore, the restart of Cigar Lake, in April 2021 is expected to provide a much-needed boost to Canada’s uranium supply.”
Renewed interest in uranium
The uranium market has been in decline in recent years due to fears surrounding nuclear energy, though as governments around the world make commitments moving away from fossil fuels, interest has been renewed.
The US is currently evaluating extending the operating life of its nuclear power plants for up to 100 years.
Other countries such as China, Japan and South Korea, as well as the EU, all upgraded their climate change policies during 2020, indicating higher demand for nuclear power going forward, alongside higher electricity generated from sources other than coal.
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