The setback adds to a list of supply challenges that have helped to catapult spot uranium prices to 15-year highs
Kazatomprom, the world’s biggest uranium miner, warned that it’s likely to fall short of its production targets over the next two years, adding another risk to supply as demand for the nuclear fuel rebounds.
The London-listed company, which is controlled by Kazakhstan’s government via its sovereign wealth fund, said on Friday that shortages of sulfuric acid and construction delays at newly developed deposits are creating production challenges that could persist into 2025. It will outline the likely impact on output in a trading update by Feb. 1, it said.
The setback adds to a list of supply challenges that have helped to catapult spot uranium prices to 15-year highs, with last year’s coup in Niger disrupting shipments to European reactors, and key miner Cameco Corp. lowering its production targets due to challenges at its operations in Canada.
Many mines were mothballed as prices plunged in the wake of the Fukushima disaster, and now operators are racing to bring them back online as demand rebounds.
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