Uranium

Enriched uranium isotope U-235 is used as a fuel for nuclear power reactors to generate electricity. Smaller versions of reactors are used in aircraft carriers and submarines instead of diesel or gas generators. Due to uranium’s unmatched energy density, they can run for long durations without refuelling. They provide a 24X7 reliable and clean source of energy.

Enriched uranium is also used in nuclear weapons. These bombs could be used as a projectile in rockets and missiles. Nuclear explosions cause a vast level of destruction. The world has already witnessed the destruction caused by nuclear bombs during World War II when two nuclear bombs were dropped on Hiroshima and Nagasaki in Japan, killing hundreds of thousands of people.

Prolonged exposure to uranium can cause radiological and chemical poisoning. Exposure to uranium can cause kidney poisoning. Consuming food containing uranium or breathing uranium dust can cause poisoning and subsequently enter the bloodstream. This may lead to acute kidney failure and eventually death with a very high level of uranium consumption.

Uranium radiation also has significant health consequences. Workers associated with uranium mining and processing can get affected by exposures that can lead to cancer. To make it worse, cancer caused by radiation is indistinguishable from ‘naturally occurring’ cancer and it is seen in patients many years after the exposure.

Uranium prices jumped to US$53/lb during the first half of 2022. According to the data published in Resources and Energy Quarterly’s June 2022 edition, the prices are expected to move further to US$61/lb by 2024.

Post the Fukushima nuclear reactor accident, triggered by a Tsunami, several countries started to withdraw or postpone their nuclear power program. As a result, the uranium mining industry witnessed lesser interest from investors. As a consequence, multiple exploration and production projects were halted or abandoned.

Since the 2015 Paris Agreement on Climate Change and in a less-severe COVID-19 pandemic, the world is again looking at uranium as a clean and reliable energy source.

Australia holds the world’s largest resource of uranium and is currently the third-largest producer. The country produced nearly 4,000 tonnes of uranium for FY2021-22, which is expected to increase to 5,480 tonnes for the next fiscal year.

Interestingly, Australia does not have any commercial nuclear power plant. Hence, whatever is mined is exported to international buyers.

Most of the current production is coming from three mines in Australia- Olympic Dam, Ranger and Four Mile. The production is expected to increase significantly by 2027, as Boss Energy’s Honeymoon mine is expected to commence full production from 2027.