Kazakhstan produces 40% of the world’s uranium, and has been in the grip of a major crisis since uprisings by the population over the price of gas.
The crisis is having a major impact on world uranium prices.
Crisis in Kazakhstan pushes up uranium prices
According to a Cameco spokesman, the crisis in Kazakhstan has so far caused no disruption to production at the Inkai site in Kazakhstan.
Nor does the company anticipate any impact on deliveries.
Cameco is the world’s 2nd largest uranium producer and co-owner of the Inkai uranium operation in Kazakhstan with Kazatomprom.
Prices soar
Yet in Canada, the current monthly spot price for U3O8 is $45.50 per pound, an increase of $3.25.
This is the biggest increase since the price rose by $3.75 on September 15, 2021.
1 million pounds were traded on January 5, 2022.
Most were bought by participants other than the Canadian specialty fund Sprott.
Among these, many suggest that the unrest in Kazakhstan is stimulating increased buying, especially as 40% of the world’s uranium supply is produced in this country.
The players are keeping a close eye on the situation
“It seems to us that the unrest is happening in the cities and that the uranium deposits are far from that. But transport is by truck and ship, and if these supply routes are affected, it could create delays,” says Sprott Managing Director John Ciampaglia.
Market players keep a close eye on events in the country to detect risks to the supply chain.
