Uranium Report 2019 - Update
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Nuclear power currently covers about 11.5% of the world's total energy needs. However, fossil fuels, such as coal and crude oil, are still burned primarily to generate energy. The increasing demand for a reduction in CO² emissions and the increasingly noticeable phenomenon of "global warming" are prompting energy-guzzling industrial nations and emerging economies in particular to increase their energy efficiency and improve their CO² budgets. The second important point is the electric revolution that is about to begin, which will not only allow us to move almost 100% electrically in a few years' time, but will also bring with it a huge, additional surge in demand for clean energy.
Uncovered uranium demand is expected to be around one billion pounds of U3O8 over the next ten years. Massive production cuts have led to the uranium price recovering somewhat in 2018 but is still far from the level at which mining is really worthwhile.
A hitherto underestimated but highly interesting aspect with regard to a turnaround in the uranium spot price could be an initiative from the USA. In January 2018, the only two remaining US uranium producers, Ur-Energy and Energy Fuels, filed a petition with the U.S. Department of Commerce to highlight the relevance of U.S. uranium production in terms of potential security concerns and increasing dependence of the energy industry on uranium imports.
The two companies argued that imports from successor countries of the former Soviet Union (namely Russia, Kazakhstan and Uzbekistan) now account for 40% of US demand for uranium, while only 5% of demand is produced in the US itself. The dependence, both of the US energy industry (after all, 20% of the electricity consumed in the USA is generated from nuclear power plants) and of the military, on these nations has increased alarmingly as a result.
With their petition, the two producers want both the Ministry of Commerce and President Trump to work out a clear assessment of the import dependence of the USA on Russia, Kazakhstan and Uzbekistan and to promote the US's own uranium industry.
A decision must be expected by July 2019 at the latest.
This report provides insightful information about the uranium sector and provides insightful interviews with selected industry experts. The presentation of a number of interesting companies that are suitable for speculation on rising battery metal prices completes the report.