The cyclical surge of uranium: The demand for carbon-free energy is powering an increase in uranium mining projects – by Angelica Zagorski (CIM Magazine -December 06, 2021)

Nuclear power will play a major role in helping to increase electrification while also phasing out carbon-intensive sources of energy. Governments have been reluctant to support nuclear power because of its rising costs since the Fukushima disaster in 2011, and its potential environmental impacts.

But with the world realizing the imminence of the climate emergency, many are seeing uranium’s potential of providing reliable low-carbon electricity, which has been a big boost for developers and miners.

Consistently low prices and a lack of investment in new production have shrunk supplies of uranium across the globe. The pandemic amplified this issue through unplanned supply disruptions and increased demand for uranium from financial funds and junior uranium companies – in particular, the transition of the Uranium Participation Corporation to a uranium trust managed by Sprott Asset Management, with a $1.3 billion at-the-market feature.

Now, the World Nuclear Association is forecasting uranium demand to climb from 162 million pounds in 2021, to 206 million pounds by 2030 and 292 million pounds by 2040. However, the current primary supply is expected to decline 30 per cent by 2035 and 54 per cent by 2040 due to resource depletion.

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