[ RadSafe ] Price of uranium

[Jim Otton]

Larry and Radsafers,
As a result of the energy crisis of the 1970s and early 1980s, uranium
exploration and production went into high gear and a massive oversupply of
uranium occurred, especially as concerns about the safety of NPPs developed
and the projected new power plants were not built.  In the early 1980s the
price crashed from about $40/pound U3O8 to as little as $6-8/pound.  U.S.
production dropped rapidly because of the relatively high costs of mining
low-grade U.S. uranium.  Only a few uranium exploration and production
companies survived in the U.S. although companies in many foreign countries,
such as Canada and Australia, with higher grade, lower-cost mines were able
to continue production.  In early 2004, only two U.S. uranium mines, using a
low-cost mining technique called in-situ leach, were in production producing
about 2 million pounds per year.
However, with the 100+ NPPs in the U.S. continuing to use 50-60 million
pounds U3O8 per year, uranium stockpiles held by utilities have been nearly
depleted.  Uranium derived from the downgrading of Former Soviet Union HEU
material and existing production in other countries has been insufficient to
meet the demand here and elsewhere and the price has moved up substantially.
China and other countries have announced aggressive NPP construction
projects.  Moreover, people in many environmental groups have suggested that
electrical generation by NPPs is preferable to continued use of fossil fuels
because of global warming.  Some forecasters are suggesting $30-50/pound
prices in the near future.  As the cost of uranium is only about 2-3% of
operating costs, the price can go significantly higher before it becomes
constrained by economic concerns.
As a result, many uranium properties in the U.S., held in suspension by the
surviving companies, are restarting production.  As of Feb 2005, there are 7
producing properties.  In an earlier AP news item today from Sandy Perle,
the Shootering uranium mill in Utah is in startup with plans to mine nearby
uranium ore.

Jim Otton
Energy Program
U.S. Geological Survey


-----Original Message-----
From: Boing, Lawrence E. [mailto:lboing at anl.gov]
Sent: Monday, March 21, 2005 1:40 PM
To: Jim Otton; radsafe at radlab.nl
Subject: RE: [ RadSafe ] Price of uranium


Jim and any others - What is driving the uranium cost to soar like this?

Larry


Lawrence E. Boing
Argonne National Laboratory
9700 South Cass Avenue
Argonne, IL  60439

P-630.252.6729
F-630.252.7577
lboing at anl.gov
http://www.td.anl.gov/D&D/
http://www.orau.gov/ddsc/



-----Original Message-----
From: radsafe-bounces at radlab.nl [mailto:radsafe-bounces at radlab.nl] On
Behalf Of Jim Otton
Sent: Monday, March 21, 2005 2:30 PM
To: radsafe at radlab.nl
Subject: RE: [ RadSafe ] Price of uranium

Radsafers,

To avoid confusion, the price of uranium in the previous email is for
uranium oxide (U3O8)as produced from a uranium mill.

Jim Otton

-----Original Message-----
From: radsafe-bounces at radlab.nl [mailto:radsafe-bounces at radlab.nl]On
Behalf Of Jim Otton
Sent: Monday, March 21, 2005 7:44 AM
To: radsafe at radlab.nl
Subject: [ RadSafe ] Price of uranium


Radsafers,
Uranium is indeed selling at above $21/pound.  The "spot" price at the
close of Feb 2005 is $21.75 and the long term contract price is
$26/pound.
Operating uranium mines in the U.S. have gone from 2 mines 12 months ago
to
7 today with many more in start up mode.
Our small uranium group here has gotten about 20 uranium inquiries ove
the past 3 months.

Jim Otton
Energy Program
U.S. Geological Survey

-----Original Message-----
From: radsafe-bounces at radlab.nl [mailto:radsafe-bounces at radlab.nl]On
Behalf Of J. Marshall Reber
Sent: Saturday, March 19, 2005 10:45 AM
To: sandyfl at earthlink.net
Cc: radsafe
Subject: Re: [ RadSafe ] Japanese Gov't to distribute guidelines
forfirefighters on nuclear


> Uranium is selling above $21 per pound. It sold as low as $7.50 per
> pound in 2001.

That's hard to believe!

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