will bhp olympic dam affect pen uranium price, page-5

BHP currently already produces 4500tonnes of uranium per annum from Olympic Dam. Uranium production at Olympic will not be affected by a low uranium price as it is a by product of their copper production so they have to produce uranium if they want the copper. So it is probably more appropriate to say that the production of uranium will depend more on the price of copper than on the price of uranium.

The expansion is still uncertain and a decision is expected to be made next year (has been delayed before). If I recall, it is a huge project. I think around $80billion dollars and will happen in stages over many years.

So, Olympic Dam is IMO unlikely to affect the uranium price or PEN in the short term. It was however supposed to bring the demand supply situation for uranium back into balance I think sometime in 2018 but with the latest developments, who knows what the demand supply situation will look like next week let alone in 7 years time.