North American Uranium Reserves to Boost Mining Industry

Thursday 19 July 2012, Amsterdam

Substantial reserves in Canada and the US are expected to keep uranium production buoyant in North America, according to the new Uranium Mining Market in North America to 2020 - Higher Production Driven by New Projects, Improved Mining Methods and Price Increases report.

The new report states that the future of uranium production in the region relies upon new mining developments, with the most significant expansions destined for Canadian uranium mines.

North America is one of the major uranium producing regions in the world, accounting for around 17% of global uranium mine production during 2011. At the end of 2010, the region had reserves of 761,781 ton uranium (tU), representing about 12% of global reserves, but several exploration activities currently in progress look to nurture further growth in North America’s uranium industry.

The development of new mines and capacity expansions at existing mines in the US and Canada will underpin regional uranium mine production. The development of Cigar Lake, one of the world’s largest undeveloped high-grade uranium deposits located in Saskatchewan, Canada, is expected to be operational by mid-2013 and have an annual production capacity of 6,924 tU. Similarly, the Midwest Millennium mine project in Northern Saskatchewan, the Kiggavik project in the Kivalliq region of Nunavut, the Matoush exploration project in central Quebec, and the Nichols Uranium Project in the US are expected to boost production in the near future.

In addition to this, the multi-year McArthur River extension project, which began in 2010, is encouraging a new lease of underground exploration around present mining operations in Canada. Expansion plans are also present for Rabbit Lake uranium mine, where new mineralization, known as the Powell zone, has been identified, with new drilling plans scheduled for 2012.

However, despite this abundance of uranium, labor and fuel costs are becoming a harder challenge to conquer for mining operators in North America, with Canadian uranium mining company Cameco Corporation claiming that their rising prices are a key factor affecting business. Occupational risks are another potential problem facing uranium miners around the world, due to radioactive dust present in mining operations. Should lawsuits arise as a result of workers suffering bad health, this would likely have a crippling effect on uranium mining companies’ finances.

North America produced an estimated 10,561.4 tU in 2011, and regional uranium mine production is forecast to increase by 6.8% to 18,236 tU in 2020. The rate of expected growth in mine production during 2012-2020 in the US and Canada is roughly the same, with estimated CAGRs of 6.7% and 7% respectively.

This report provides key data, information and analysis of the North America uranium mining industry, comprising Canada and the United States. The report covers the industry’s drivers and restraints, production and reserves. This report discusses uranium mine production and available reserves across North America as well as the commissioning of several planned uranium assets and the exploration and development activity initiated within the geographical territory of North America. This report is based on data and information sourced from proprietary databases, primary and secondary research and inhouse analysis by a team of industry experts.

This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by a team of industry experts.