Uranium prices, which increased by 233 percent in 5 years, overtook both gold and silver

Uranium, which has a wide range of uses from the development of nuclear weapons to providing electricity in nuclear power plants, has made a remarkable leap. After the Fukushima Nuclear Power Plant disaster in 2011, the hazardous substance, which was not preferred by anyone for a long time, began to revive with the interest in nuclear energy.

GOLD, COPPER AND SILVER TRIPLED

While governments have renewed interest in carbon-free energy produced by nuclear power plants due to the impact of climate change, the search for alternatives to Russian energy due to the Russia-Ukraine war has also increased interest in nuclear energy. The return to nuclear energy increased uranium prices. Uranium prices have increased by 233 percent in the last 5 years. Thus, the earnings of uranium tripled those of gold, silver and copper.

SHARES OF COMPANIES ALSO FLYED

The increase in uranium prices was also reflected in the shares of companies traded on the stock exchange. Most of the uranium companies in Canada, which is expected to surpass Kazakhstan as the world’s largest uranium producer, have increased by more than 400 percent in the last 4 years. Although the newly established mining company called NexGen Energy, which continues to search for uranium in the Canadian province of Saskatchewan, does not expect to make sales until 2028, the company’s market value has reached almost $4 billion. The high mineral content of the soil in Saskatchewan’s Athabasca Basin is effective in increasing the company’s market value. The soil is so full of minerals that at some mines, including NexGen’s, uranium must be diluted before it can be sold. The NexGen mine will account for 13 percent of all global supply, estimates Orest Wowkodaw, a mining analyst at Scotiabank in Toronto.

SUPPLY-DEMAND IMBALANCE INCREASES ITS ATTRACTION

Much of the appeal of the uranium business comes from the imbalance of supply and demand. Demand for the metal from China, India, Japan, the United States and Europe is growing much faster than miners can extract it from the ground. By the 2030s, demand could exceed supply by more than 100 million pounds a year, predicts Treva Klingbiel, chief executive of TradeTech, which provides industry data. Russia’s isolation further increases the supply gap. Not only are European countries scrambling to find alternative fuels to replace the Russian natural gas that fuels most of their power plants, they also rely on Russia for raw and enriched uranium.

61 NUCLEAR POWER PLANTS ARE BEING CONSTRUCTED ACROSS THE WORLD

Today, 61 nuclear power plants are under construction around the world, approximately 90 are in the planning stage and more than 300 are proposed. There is even an effort to reopen old power plants that were closed years ago. As new reactors come online, the world’s need for additional uranium ore increases. However, this boom also carries the risk of going bankrupt, as it has in the past.

“THE THING WE NEED TO TEST IS A FATAL ACCIDENT”

All it takes is another fatal accident to seriously test the newfound enthusiasm for nuclear energy. On the other hand, questions about how and where radioactive waste will be disposed of continue to be the most important weakness in a number of construction initiatives.