Adam McKay (a well known geologist with Geoscience Australia) reported in 2012 that major uses for uranium (U) are as fuel in nuclear power reactors for electricity generation, in the manufacture of radioisotopes for medical applications and in nuclear science research using neutron fluxes. McKay provides a historical view of conditions as of 2012. On 11 March 2011, Japan suffered a major earthquake and tsunami which caused widespread devastation along the eastern coastal areas. The tsunami damaged and disrupted the emergency cooling systems at the Fukushima Daiichi nuclear power plant and this resulted in major damage to four of the six nuclear reactors at the site. Subsequently, this resulted in a radiological release to the atmosphere (WNA77, 2011). In the wake of the incident, there have been a range of political responses issued by governments in many countries around the world. These political responses are summarised in AIMR 2011 item 78 in the references provide in this article) see page 98).
Japan's nuclear power plants were shut down progressively for mandated periodic inspections when routine maintenance was due for each reactor. Local authorities refused to grant approvals to restart these plants and by early 2012 almost all of the 50 nuclear power plants (30% of Japan's total electricity generating capacity) were shut down. By mid-2012, two of the plants had resumed operations. The Japanese government reviewed national energy policies and decisions will be made about the contribution of nuclear power to the country's electricity generation into the future (WNA, 2012) [.... see subsequent reports on Japan (more].
The number of operating nuclear power plants worldwide declined from 442 at December 2010 (in 30 countries) to 434 by December 2011. Their share of world electricity generation also fell over the same period from 14% to 13.8% and the number of plants under construction worldwide fell from 63 to 61. By November 2012, the number of operating plants had increased slightly to 436 with a total capacity of 374 135 megawatts. The total uranium required to fuel these reactors is 68 000 tonnes a year (Source: World Nuclear Association). Although the Fukushima accident has affected nuclear power projects and policies in some countries, nuclear power remains a key part of the global electricity mix. The Organisation for Economic Co-operation and Development Nuclear Energy Agency (OECD/NEA) and the International Atomic Energy Agency (IAEA) in the latest edition of the Red Book stated:
"By the year 2035, world nuclear capacity, taking into account the current understanding of policies announced by some countries (e.g. Belgium, Germany, Italy and Switzerland) following the Fukushima accident is projected to grow to between about 540 GWe nett in the low demand case and 746 GWe nett in the high demand case, increases of 43% and 103% respectively. Accordingly, world annual reactor related uranium requirements are projected to rise to between 97 600 and 136 000 tonnes a year by 2035".
Uranium Market Prices
For the first two months of 2011, the spot-market price continued to recover from the effects of the global financial crisis during late 2008 and early-to-mid 2009. Prices were bolstered by China's plans to expand its reactor fleet. In January, prices peaked for the year at US$72 per pound (lb) U3O8. In March, the impacts of the Fukushima incident caused spot market prices to fall. Uncertainty continued in uranium markets and the spot price fell to its lowest value for the year of US$49/lb in August. However, it recovered to US$52/lb by September and remained at this level through to May 2012. Prices subsequently fell to US$44/lb by the end of December 2012.
The spot market has been adversely impacted by the uranium stocks held by Japanese nuclear power companies. This has been exacerbated by an increase in the release of uranium inventory by the United States Department of Energy which is currently selling approximately 3,800 tonnes of natural uranium a year. This represents more than 15% of annual reactor requirements in the US.....[see subsequent reports on on US imports (more)].
Resources
Geoscience Australia prepares estimates of Australia's uranium resources within categories defined by the OECD/NEA and the IAEA. The resource categories within this NEA/IAEA scheme reflect total costs of mining and milling uranium ore. In recent years, the cost of mining and milling uranium ores has increased in Australia as a result of the mining boom. Capital costs have risen and labour costs have increased more quickly than the national average. Prior to 2010, economic uranium resources were confined to the cost category of less than US$80 per kilogram (kg) of uranium. However, because of increasing costs of mining and milling, most deposits/projects are now assigned to the higher cost category of less than US$130/kg of uranium. The estimates in each category are for resources of recoverable uranium after losses resulting from mining and milling have been deducted.
See the rest of this article, Click on link. Look for an update to this article in the near future but the historical background will permit perspective.
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