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The underlying trend is confirmed on the uranium market. Prices are rising in a context where the diversification of supply is becoming an issue for all market players.
Uranium prices have picked up since the summer of 2021 and the first half of 2022 confirms this upward trend. The prices of the long-term contracts which constitute the bulk of the transactions – uranium being purchased in advance to guarantee the proper functioning of the power stations – have increased by 20% in six months (i.e. 51.50 dollars per pound end June). Spot prices, for immediate delivery, fell in the second quarter, but the increase remains 11% between January and June.
If the rise is less than long-term prices, “ is that there is no pressure on the supplyexplains an expert, we won’t run out of uranium in the coming year “. The acceleration in spot prices in the first quarter (40%) was artificial, in other words speculative, specifies our interlocutor, so there has been a correction, but in the end prices are rising well.
The underlying trend is one of demand fueled by new Chinese, Japanese and Russian projects, while investments have fallen in recent years due to excessively low market prices. ” The imbalance is latent and supports a gradual rise in prices ».
Prices still too low to relaunch certain mines
But this increase will not be enough to relaunch projects that are hardly profitable. This is particularly the case of that of Imouraren in Niger. ” Economic conditions are still not favorable to the development of the site “, explains the French group Orano. Imouraren being characterized by a low content and a geology which makes exploitation, with current techniques, particularly expensive.
Like other nuclear players, the French giant is working to diversify its supplies. Already operating two mining sites in southern Kazakhstan with the Kazatomprom group, Orano has decided to increase its production capacity. The French giant made a commitment, last month, with its partner in the exploitation of a new plot which should ensure the production of the Katco joint venture for fifteen years.