Australia's uranium is sold strictly for electrical power generation only, and safeguards are in place to ensure this. Australia is a party to the Nuclear Non-Proliferation Treaty (NPT) as a non-nuclear weapons state. Its safeguards agreement under the NPT came into force in 1974 and it was the first country in the world to bring into force the Additional Protocol in relation to this - in 1997.
In the five years to mid 2005 Australia exported 46,600 tonnes of uranium oxide concentrate (39,500 tU) with a value of over A$ 2.1 billion. The nations which currently purchase Australia's uranium are set out below. All have a large commitment to nuclear power:
The USA generates around 30% of the world's nuclear power. Much of its uranium comes from Canada, but Australia is a major source. Japan and South Korea however are important customers due to their increasing dependence on nuclear.
Customer countries' contracted imports of Australian uranium oxide concentrate may be summarised as follows, (but see also the reactor table):
USA: c 4100 tonnes per year - 103 reactors (supplying 20% of electricity).
Japan: c 2700 tonnes per year - 55 reactors (supplying 30% of electricity)
South Korea: c 1000 tonnes per year - 20 reactors (40% of electricity)
EU: about 3200 tonnes per year, including: Spain: 9 reactors (24% of electricity) France: 59 reactors (77% of electricity) UK: 23 reactors (20% of electricity) Sweden: 10 reactors (50% of electricity) Germany: 17 nuclear reactors (30% of electricity) Belgium: 7 reactors (55% of electricity) Finland: 4 reactors (27% of electricity)
Australia is a preferred uranium supplier to world, especially East Asian, markets. It could readily increase its share of the world market because of its low cost reserves and its political and economic stability.
Australia has 38% of the world's lowest-cost uranium resources (under US$ 40/kg). Nearly all of Australia's 702,000 tonnes of Reasonably Assured Resources of uranium alone to US$ 80/kg U (US$ 30/lb U3O8) are in the under US$ 40/kg U category.
This figure compares with Kazakhstan (384,000 tU), Canada (334,000 tonnes), South Africa (232,000 tonnes) and Namibia (139,000 tonnes). The following table shows these plus Inferred Resources.
Known Recoverable Resources* of Uranium tonnes U percentage of world Australia 1,074,000 30% Kazakhstan 622,000 17% Canada 439,000 12% South Africa 298,000 8% Namibia 213,000 6% Russian Fed. 158,000 4% Brazil 143,000 4% USA 102,000 3% Uzbekistan 93,000 3% World total 3,622,000
* Reasonably Assured Resources plus Inferred Resources, to US$ 80/kg U, 1/1/03, from OECD NEA & IAEA, Uranium 2003: Resources, Production and Demand, updated 2005.
WORLD MARKETS
In the 1980s large stockpiles were built up by utilities, totalling about four times annual consumption. Prices dropped and mine production fell. Little exploration for uranium has been done since then. Today world uranium consumption is about 80,000 tonnes U3O8 and production is only about 42,000 tonnes, the balance being from stockpiles and recycled military uranium. Prices rose briefly in 1995-96 but then declined. They have been rising more strongly since early 2001.
See also UIC briefing papers on Uranium Markets and World Uranium Mines
