In an unusually comprehensive report on the uranium mining industry in Australia, Cotton opines that few minerals in recent history have generated as much global discussion as uranium. From the days of activists waving the flag on uranium mining’s perceived imposition on indigenous land rights and environmental protection, through to debates around whether nuclear energy is part of the solution to climate change; views have been divided. Several global events, including the Fukushima nuclear disaster and Kazakhstan ramping up uranium production, tipped the uranium market into oversupply in 2011. A grueling seven-year bear market ensued, dragging the commodity’s price down 85%. The bear market also killed off many industry participants, with the number dropping from more than 500 to around 50.
Larger producers such as Cameco and Kazatomprom opted to shut-in parts of their production, refusing to continue mining during the bear market, despite some moving closer to the end of their long-term supply contracts. However, a sustained increase in price is emerging signaling the long bear market may be over, with the uranium spot price soaring almost 40% between April and November 2018. While nuclear power’s future in OECD countries remains a question mark, experts believe there will be significant growth in non-OECD nations due to current nuclear commitments. So, what is uranium, what role does it play in today’s economy, and why has its very existence created such heated debate? Cotton reviews some of the reasons and goes on to review the nature of uranium mining in Australia, and the current activities of the uranium mining companies active in Australia and overseas.
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