Reference News Network, December 18**, according to AFP on December 15**, in the context of renewed global interest in nuclear energy, ** restrictions and soaring demand have caused uranium prices to reach the highest level in nearly 17 years on the 15th.
The uranium oxide benchmark contract rose to 85 per pound (about 450 grams) for the first time since January 2007, the report said$75. Uranium oxide can be used as nuclear fuel after enrichment.
It is the result of a combination of factors, in particular demand due to renewed interest in nuclear energy**. At the same time, concerns about oil and gas** following the outbreak of the Russia-Ukraine conflict are also important factors.
The price of uranium will spell problems for countries that rely heavily on nuclear energy, such as France. According to the U.S. Energy Information Administration, nearly 70% of France's electricity in 2021 came from nuclear energy.
France, Belgium, the United Kingdom and Romania have recently approved extensions to the operation of several existing nuclear power plants.
In the United States, the California Public Utilities Commission approved on the 14th to extend the operating period of two nuclear reactors near Los Angeles for another five years, which were originally scheduled to be shut down in 2024 and 2025.
New projects are also being launched, especially in China, where 25 nuclear reactors are under construction. India, Turkey and Egypt are also stepping up the construction of nuclear reactors.
Jonathan Hintz, president of UXC, a U.S. nuclear industry research company, said demand for nuclear energy had been rising, but "hadn't really kept up."
According to the World Nuclear Industry Federation, this situation is particularly pronounced in Kazakhstan. Kazakhstan is the world's largest uranium producer, accounting for 43% of global production last year. Hinz told AFP that Kazakhstan is experiencing problems with raw materials for production, especially a shortage of sulfuric acid needed to mine uranium.
According to the World Nuclear Industry Federation, the world's uranium production in 2022 was about 580,000 tons.
The market is also concerned about the recent military coup in Niger, which produced 4 percent of global uranium last year, Hinz said.
The Republican-led U.S. House of Representatives voted on the 11th to ban uranium imports from Russia, which may further push up uranium prices. Russia produces 5% of global uranium. But the proposal still needs to pass the Democratic-controlled Senate.
And the hoarding of market participants has complicated and further boosted *** The biggest player is Canada's Sprott Asset Management, which took control of nearly 280,000 tons of uranium ore.
In order to meet the growing demand for uranium, some old mines have reopened, such as the uranium mine in Utah, USA.
"Uranium demand will remain strong and continue to grow," and that uranium** is unlikely to increase overnight, Hindz noted. So, in the medium term, "if anything, it's **will go further**, not **".