The Global Uranium Market

Uranium key to reaching net-zero

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  Nuclear energy boasts the smallest carbon footprint among all power generation sources.​

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  Uranium plays a pivotal role in the pursuit of achieving net-zero emissions, offering a distinct advantage absent in certain renewable energy sources: the ability to provide consistent and reliable baseload energy production.​

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  At COP28, over 20 countries launched a declaration to triple nuclear energy capacity by 2050, aiming to achieve net-zero emissions and limit global warming to below 1.5°C.​

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  One uranium pellet yields energy equivalent to 120 gallons of oil, 1 ton of coal, or 17,000 cubic feet of natural gas.​

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  Nuclear power stands out as one of the most dependable and safest sources of energy.​

“Nuclear power, renowned for its low carbon footprint and reliable energy generation, emerges as a key plater in the clean energy transition.”

Henri Paillere Head, Planning & Economics Studies Section, IAEA

The Global Uranium Market

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  Nuclear energy provides about 10% of the world’s electricity from about 440 power reactors​

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  Nuclear provides an estimated one-quarter of the world’s low-carbon electricity

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  Nuclear is the world’s second largest source of low-carbon power (26% of the total in 2020)

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  Over 50 countries use nuclear energy in ~220 research reactors

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  As of December 2023, there are 436 operable reactors and 173 reactors under construction​

Uranium Market Size & Forecast

Canada & USA Uranium Market

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  Approximately 15% of Canada’s electricity is generated from nuclear power, facilitated by 19 reactors.

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  Canada boasts the world’s largest deposits of high-grade uranium, with grades reaching up to 20%, a significant increase compared to the global average.

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  Plans for expanding nuclear capacity in Canada include the construction of two new reactors over the next decade.

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  Canada ranks fourth globally in uranium resources, following Australia, Kazakhstan, and Russia.

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  The USA leads as the largest global producer of nuclear power, contributing approximately 30% of worldwide nuclear electricity generation.

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  In 2022, US nuclear reactors generated 772 TWh, accounting for 18% of total electrical output.

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  Alongside China and France, the USA collectively represents nearly 58% of global uranium demand.

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  The Inflation Reduction Act supports existing and new nuclear development in the USA, providing investment and tax incentives for large existing nuclear plants, advanced reactors, high-assay low enriched uranium (HALEU), and hydrogen production.

Demand Outweighing Supply

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  Projected Imbalance: Uranium faces a significant supply-demand gap, with an expected cumulative deficit of around 680k metric tons by 2040.

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  Production Concentration: In 2022, Kazakhstan, Canada, Namibia, and Australia collectively controlled over 70% of global uranium production.

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  Rising Demand: Demand for uranium in nuclear reactors is projected to surge, with estimates indicating a 28% increase by 2030 and nearly doubling by 2040, primarily driven by government initiatives to scale up nuclear power capacity.

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  Supply Challenges: Reactivating mines is crucial for short-term supply augmentation, recognizing the lengthy 10-15 year timeline for operational readiness.

Athabasca Basin Region

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  The majority of Canada’s reserves are situated in the Athabasca Basin of northern Saskatchewan, known for hosting the world’s largest high-grade uranium deposits, with grades ranging from 10 to 100 times higher than the global average.

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  The Athabasca Basin contributes to 15.5% of the world’s annual uranium production.

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  McArthur River is the world’s largest high-grade uranium mine, combined with Rabbit lake they produce 23.4 million pounds of the world’s uranium.

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  Discovered in the 1940s, the Athabasca Basin has been actively producing uranium for over 80 years.

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  Saskatchewan ranks third globally in the Fraser Institute’s assessment of top mining jurisdictions to invest in.

Sources: National Resources, Canada, Visual Captialist: Athabasca Basin, The World’s Highest Grade Uranium District, Fraser Institute

Small Modular Reactors (SMRs)

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  The global market for SMR technology is about $400 to $600 billion, according to Stantec.

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  In 2021, Trump proposed a USD $1.2 billion budget for advanced nuclear energy research and development and the Biden administration’s Energy department invested more than $1 billion into research and development of reactors to fuel sources.

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  By collaborating with industry leaders such as Cameco Corp. (TSX: CCO), NexGen Energy Ltd., Orano Canada Inc., Forum Energy Metals Corp. (TSX.V: FMC), Global Uranium leverages extensive expertise in uranium exploration and extraction, ensuring high-quality uranium production tailored for SMR technology.

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  Global Uranium’s Canadian & US based projects have the potential to supply a steady stream of uranium, which is essential for fueling Small Modular Reactors (SMRs). SMRs require consistent and reliable fuel sources to maintain uninterrupted power generation.

Sources:

Government of Canada: SMR Action Plan

RBC: Canada’s Big Plans for Small Modular Nuclear Reactors

Forbes: U.S. Government Helps Nuclear Energy Allies Catch Up to Russia, China