Uranium - The World Picture

World nuclear capacity reached 372 GW in 2007. A total of 31GW of nuclear capacity (34 reactors) is now under construction, with the majority in the Asia-Pacific region.

In the United States, over 17 companies are actively pursuing licenses for more than 30 nuclear reactors. Worldwide over 90 reactors are in various stages of planning. World nuclear capacity is projected to rise to 397 GW by 2015 and 433 GW by 2030.

The Supply Crunch is Coming

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Uranium mine production from 2003-2005 satisfied only 53% of estimated demand for uranium. The balance of demand was met from stock depletion and dilution of weapons-grade highly-enriched uranium. (“Megatons to Megawatts” program between the former Soviet Union and USA expires in 2013 – Russia has indicated it will not renew). World uranium consumption outstripped production in 2008 and 2009 and is forecast to do so again in 2010.

Trends

Spot and Long Term Pricing

Over 90% of all uranium contracts are negotiated on long-term price.Uranium does not trade on an open market like other commodities.Contracts are negotiated between buyers and sellers privately.

The Saudi Arabia of Uranium … is Canada

Northern Saskatchewan’s Athabasca Basin stands in marked contrast to global ‘conventional’ deposits. Many of the Basin’s most significant deposits are just a few tens of meters wide and hundreds of meters long and boast grades tens to hundreds of times greater. Fully 50% of McArthur River’s reserves, over 200 Million lbs, is contained in an area smaller than a football field with an average grade of 20.67%.

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Sources: World Energy Outlook, IEA, Cameco Corp, ABARE