Olivia Woods
Kazakstan, the world’s largest uranium producer, is currently troubled by political unrest that has the potential to both limit production and drive up prices.
After three days of unrest and the deployment of a Russian-led military alliance to crush the protest, authorities used force against protestors on Thursday, killing dozens of civilians.
Foreign traders and mining businesses believe the protests might restrict the transportation of workers and equipment between mines during shift changes and block exports.
About 40% of the world’s supply of uranium is produced by Kazakhstan. The country has built a solid reputation as a trustworthy vendor, selling it to utilities in the United States, China and other Western countries.
Protests in Kazakhstan’s western Mangistau region over rising energy prices triggered the resignation of the government on Sunday, which pushed the price of uranium up as well. U3O8 was projected to trade above $46 a pound on Thursday, according to market analysts. To put that in perspective, that’s an increase from last Wednesday’s $45.25 and from $42 at the beginning of the year.
The uranium market was particularly vulnerable at the time of the protest. According to UxC LLC, prices have risen more than 50% in the last year. Since Japan’s nuclear reactor meltdowns in 2011, nuclear power plants in Japan and Germany have been shuttered, which has resulted in decreased demand.
Traders and mining corporations fear the conflict will have an effect on uranium deliveries if it is not resolved fast. Because of the reliance on in-situ leaching, most of Kazakhstan’s uranium mining involves the use of sulphuric acid and a continual supply of pipelines to line the wells dug deep underground.
Original source material for this article taken from here
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