A Joint Report by the Nuclear Energy Agency and the International Atomic Energy Agency reports that the overall picture shows an increase in identified uranium resources. Though a portion of these increases relate to new discoveries, the majority result from re-evaluations of previously identified uranium resources. However, additional investment is required to ensure these resources can be brought into production in a timely manner.
Uranium exploration and mine development expenditures declined from over USD 2 billion in 2014 to USD 663 678 million in 2016. Total expenditures continue to decrease in response to a sustained depressed uranium market since mid-2011.Global uranium mine production increased by 3% from 2015 to 2016. However, production has started to decline with 59 342 tU produced in 2017 and further reductions are expected in 2018 as major producing countries, including Canada and Kazakhstan, limit total production in response to the sustained low price of uranium.
With uranium production projected to expand in a mid-term perspective, efforts are being made to develop safe mining practices and to continue to minimize environmental impacts. Brief country overviews indicate the status of site remediation and decommissioning projects and highlight progress that the uranium industry has made on environmental stewardship.
The outlook for nuclear power has decreased since the 2016 report. However, demand for uranium is expected to continue to rise for the foreseeable future as nuclear power is projected to grow in regulated electricity markets with increasing electricity demand and a growing need for low-carbon electricity generation. Promoting incentives for all types of low-carbon electricity production are key conditions for a greater projected growth in nuclear capacity.
The currently defined resource base is more than adequate to meet high case uranium demand through 2035, but doing so will depend upon timely investments to turn resources into refined uranium ready for nuclear fuel production. Challenges remain in the global uranium market with high levels of oversupply and inventories, resulting in continuing pricing pressures. Other concerns in mine development include geopolitical factors, technical challenges and legal and regulatory frameworks.
Despite recent declines in electricity demand in some developed countries, global uranium demand is expected to continue to increase in the next several decades to meet
large population needs, particularly in developing countries. Since nuclear power plants produce competitively priced, low-carbon baseload electricity, and the deployment of nuclear power enhances the security of energy supply, it is projected to remain an important component of energy supply. However, the Fukushima Daiichi accident has
eroded public confidence in nuclear power in some countries, and prospects for growth in nuclear generating capacity are thus being reduced and are subject to even greater
uncertainty than usual. In addition, the abundance of low-cost natural gas in North America and the risk-averse investment climate have reduced the competitiveness of
nuclear power plants in liberalized electricity markets. Government and market policies that recognize the benefits of low-carbon electricity production and the security of
energy supply provided by nuclear power plants could help alleviate these competitive pressures. Nuclear power nonetheless is projected to grow in regulated electricity
markets with increasing electricity demand and a rising need for clean air electricity generation.
Regardless of the role that nuclear energy ultimately plays in meeting future electricity demand and moving towards global climate objectives, the uranium resource base
described in this publication is more than adequate to meet projected requirements for the foreseeable future. In the wake of recent significant reductions in uranium production, the coming challenges are likely to be those associated with constrained investment capabilities, as a result of depressed market conditions that will push the industry to optimize its activities still further.
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