Major Uranium Producers Hesitant to Build New Mines

March 10, 2016

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Reuters reported that a number of the world’s biggest uranium miners “are taking a cautious approach to building new mines.” They would rather cut costs and wait for higher uranium prices than get into production right now.

As quoted in the market news:

France’s state-owned Areva SA will trim 100 to 200 more jobs this year and stay out of the hunt for new mine exploration projects, Jacques Peythieu, Areva senior executive vice president of mining business, said in an interview from Paris on Tuesday.

“We are very focused to reduce our cost and to reduce our investment, to be able to manage this period of low price,” he said.

Cameco Corp, the second-largest producer, is slowly expanding the world’s biggest uranium mine, but its CEO said on Monday the company is holding off on expanding to full capacity.

Russian-controlled Uranium One and partner Kazatomprom are ramping up uranium production in Kazakhstan during the next three years, adding 1.5-million to two-million pounds. But Uranium One will delay building a new mine in Tanzania until prices rise more than 70% from current levels, Chief Executive Officer Feroz Ashraf said on Tuesday.

Toronto-based Uranium One, the world’s fourth-largest uranium producer, looks to start construction of the Mkuju River mine in Tanzania once spot uranium prices stick above $55 per pound.

Uranium currently trades around $32.15 per pound.

Click here to read the full Reuters report.

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Category: Energy