As the energy transition continues from fossil fuels to cleaner sources like nuclear power, the U.S. Energy Information Administration (EIA) is already seeing increased production domestically in the United States, surpassing last year’s numbers. “Uranium miners in the United States produced more than 82,000 pounds of uranium concentrate in the first quarter of 2024, more than in all of 2023,” confirmed the EIA.
The organization noted that there are various factors contributing to the increased uranium production. The frequency and intensity of mining activity also increased, which is also requiring the need for more employees. This is a boon for the labor market.
“The number of exploration and development holes dug—a precursor to uranium production—jumped from 260 holes in 2021 to 1,008 holes in 2022 and to 1,930 holes in 2023,” they said. “The distance drilled per well, another precursor, increased from 123,000 feet in 2021 to 534,000 feet in 2022 and then to just over one million feet drilled in 2023. The number of full-time employees engaged in uranium exploration activities also rose from 42 employees in 2021 to 110 employees in 2023.”
From a global perspective, there’s additional upside for uranium. Continued adoption is key for uranium prices. More countries are becoming receptive to uranium as an alternative energy source to meet emissions goals. Not all countries will be open to uranium given the history of past incidents. However, the EIA is still expecting an increase in uranium projects.
“Uranium prices have generally risen over the last five years as a result of several factors,” the EIA said. “Worldwide supply and demand have balanced following a supply surplus after the Fukushima accident in 2011. Russia’s invasion of Ukraine has caused some countries to rethink a move away from nuclear energy, and we expect uranium consumption to increase from the nearly 60 reactors that are currently under construction. around the world.”
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