Why Uranium
Demand for uranium is driven by consumer and industry demands for electricity; and, the resultant needs of the nuclear power industry worldwide to fulfil these demands. . There is no solitary solution to meeting future world energy needs. This will require providing energy from a mix of sources such as fossil fuels, renewable energy and uranium.
Other major world factors influencing the demand for power and electricity include the industrialisation of nations such as China and India; the development of long-term energy strategies in many countries; and the vital issues surrounding global warming. All of these have resulted in a global resurgence of the importance of nuclear power. As a result, demand for uranium has the potential to outstrip supply by the end of the decade.
Around 16% of the world’s electricity is currently provided through nuclear power. Not only is it a reliable and cost-effective source of electricity, but it is also generated without the greenhouse gas emissions created when fossil fuels are used to produce energy, that are involved in the global warming issue.
The main reasons behind the newfound support for the uranium industry include:
- Nuclear power will be a crucial component of base load electricity generation in developed and developing nations for decades to come due to the need for energy diversification, security of supply, economic competitiveness and lack of environmental impacts related to global warming.
- Secondary sources of uranium are limited and primary uranium supplies must increase to close the large and widening deficit between mine production and reactor requirements.
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Growing demand for fuel for the world’s expanding nuclear power capability will drive uranium prices higher.
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Uranium Prices 2003-2006 |
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Nuclear Power Generating Capacity |
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Projected Nuclear Power Plant Capacity By Region |
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Projected Uranium Requirements for 3 Demand Scenarios |
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Uranium Supply Composition for the Upper Demand Scenario |
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Uranium Purchased by Owners and Operators of US Civilian Nuclear Power Reactors from 1994 – 2004 |
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Maximum Anticipated Uranium Market Requirements of Owners and Operators of US Civilian Nuclear Power Reactors from 2005 – 2014 |
