WINDHOEK-Uranium spot prices are likely to remain under pressure for the rest of the decade, a global leader in financial information services has warned.
Fitch Ratings raised the concern in a media statement issued on its website, blaming very high inventory levels, recycling of already-mined uranium and the slow restart of Japan’s nuclear reactors.
“Spot prices for U3O8 have been fluctuating around US$35 per pound and we do not expect them to recover to US$50 for several years. In the longer term, low uranium prices are likely to lead to more mining project cancellations and delays, which may result in undersupply after 2020, driving prices up,” it cautioned.
Uranium prices have been falling since the year 2011, when the Fukushima disaster caused the Japanese authorities to shut down all 52 of the country’s reactors and prompted the German government’s decision to phase out its nuclear power by end of 2022.
The first two Japanese reactors came back online in the second half of 2015, but progress to restart other reactors may remain slow, according to the statement.
Long-term prospects for uranium, however, remain positive and Fitch expects demand to rise by nearly 45% by 2030, with China, India and Russia the main users of net new global capacity.
On the local scene, the Namibian Uranium Association (NUA) said on its website Namibia is well positioned to become the second largest producer of uranium in the world, elevating Namibia past Niger, Australia and Canada to the second rung on the world ladder of uranium producers.
Currently, Chinese state-owned company Guangdong Nuclear Power Company (CGNPC) Uranium Resources’ Husab uranium mine is said to hold about 280 million tonnes of uranium ore. It has a life of about 20 years and is expected to boost Namibia’s GDP by 5%.
It is expected to produce 15 million pounds uranium oxide per annum, more than twice the country’s current uranium production.
Rio Tinto’s Rössing Uranium and Paladin’s Langer Heinrich are currently Namibia’s only two producing uranium mines, with production targets of up to 12 million pounds per annum.
– Nampa
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