Global uranium production is expected to recover by 3.1% to reach 51 200 t this year. This is according to data and analytics company GlobalData.
The analytics company points out that the recovery will be as a result of the return to production of the Cigar Lake mine, in Canada, as well as at other mines where operations were suspended during 2020. Output growth from Kazakhstan (+15.5%) and Russia (+5.2%) will contribute significantly to the overall growth. However, production will continue to decline in Australia (-21.2%) owing to the closure of the Ranger mine.
“Global uranium production has been limited in recent years, mainly due to a sluggish market. This was further impacted by the Covid-19 pandemic from early 2020. In fact, global production of uranium fell by 9.2% to 49 700 t in 2020. The most significant declines were observed in Canada (43.9%) and Kazakhstan (14.6%). Globally, almost 60% of uranium originates from these two countries,” said GlobalData associate project manager Vinneth Bajaj.
Annual growth rate
In March 2020, Canada’s Cigar Lake mine, which accounts for 12% to 13% of global production, was suspended to contain the outbreak of Covid-19. The suspension stayed in place until September 2020, but operations were again halted in mid-December 2020 because of the increasing risks of infections. The mine reopened in April this year.
In April 2020, Kazakhstan reduced activities at all uranium mines across the country for nearly four months. The pandemic also led to restrictions in other countries, including Australia, Namibia and South Africa. However, restrictions began to ease towards the end of the third quarter, with several companies having resumed production.
GlobalData estimates that global uranium production will grow at a compound annual growth rate (CAGR) of 6.2% from 2021 to 2025 to reach 65 200 t in 2025. Kazakhstan, which holds some of the world’s largest uranium deposits, is expected to remain the world’s largest supplier for the next few years. Namibia is also expected to remain a prominent supplier of uranium to the global markets with its potential open-pit uranium mines
