Uranium prices ‘are turning the corner’ – Canadian developer.
Despite uranium prices remaining weak, Canadian mineral resources company GoviEx Uranium CEO Daniel Major believes that they are turning the corner and he is optimistic about more price improvements.
In an interview with Mining Weekly earlier this month, he acknowledged that the past few years had been “extraordinarily difficult” for the uranium industry and 2016 was no exception.
He recounted that the uranium spot price had fallen from $34.70/lb of triuranium octoxide (U3O8) in January to $18/lb in November, decreasing nearly 50%. Major elaborated that this price decline was against a background of sizeable inventories, covered contracts and excess enrichment capacity. “In December, however, we started to see the first signs of the long-expected uranium price recovery.”
He highlighted that the spot price closed the year at $20.44/lb of U3O8 – a 20% increase on last year’s low. “Producers cannot make money at the current uranium spot price and we, thus, expect long-term demand for uranium to grow, with demand forecast to rise from about 180-million pounds of U3O8 in 2016 to between 220-million pounds and 260-million pounds by 2025 based on the lower and upper case scenarios.”
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Supply Cliff?
Commodities supply shortfall looming following years of underinvestment
Strikes Threaten Coal Sector
If an agreement cannot be reached on the future structure and form of wage nego­tiations in the coal sector, unions have threatened to strike, says Solidarity mining industry deputy general secretary Connie Prinsloo.
Continued Focus On Downstream Development
Continued Focus On Downstream Development
Unrelenting Scourge
Mining fatalities in South Africa rise for first time in decade
Plea For Open Discussion
Diamonds body calls for ‘productive dialogue’ on Kimberley Process reform
Deep Potential
Stillwater deal seen positioning Sibanye as globally competitive mining champion.
Explosive Advantage
Explosives reloading system helping Gold One to reduce mining costs.
Critical Juncture
South Africa’s mining sector at a crossroads, collaborative effort required.
Consulting Engineering's Viability Proportional to Mining's Growth
The consulting engineer-ing industry’s sustain-ability and growth are largely dependent on and proportional to the mining industry’s sustainability and growth respectively, says industry body Consulting Engineers South Africa (Cesa).
Greater Emphasis On Ensuring Sustainability
Engineering expertise can be used to generate socio-economic gains for mining companies, particularly in jurisdictions that are dependent on the finite business of mineral extraction, states global engineering and infrastructure advisory firm Aurecon, an adviser to the African mining sector.
