The recent coup in Niger has raised concerns about the price of uranium, as the West African nation is the world’s seventh-largest producer of the radioactive metal. Market research firm and consultancy UxC has warned that the price of uranium, which has already doubled over the past three years, may surge even further in the coming weeks.
French nuclear fuel company Orano, which operates Niger’s uranium mines, has stated that it continues to operate despite the coup and plans by France to evacuate its citizens. Orano has reported that 99% of its staff in the country are Nigerien nationals.
President of UxC, Jonathan Hinze, has expressed concerns about the impact of the coup on the uranium market. He believes that the event may take some time to seep into the market psychology, but it could ultimately lead to upward moves in the uranium price. Hinze cites the overall tight supply and demand balance in uranium as a potential catalyst for price increases.
The spot price of uranium, which is widely used for nuclear energy and cancer treatments, has reached $56.25 a pound, compared to $56.15 a week earlier. However, Hinze states that the spot price has not changed significantly because Orano primarily sells uranium on long-term contracts and the summer months are typically slow in the spot market. It is worth noting that the price of uranium reached a record high of $140 in 2007.
The International Energy Agency (IEA) predicted last month that worldwide demand for critical minerals, including uranium, would spike due to renewed interest in nuclear power. The projection highlights concerns over Russian supplies and the need for alternative sources. Niger, which was the second-largest supplier of natural uranium to the European Union (EU) last year, is likely to play a significant role in meeting this increased demand.
The European Union nuclear agency Euratom has reassured that there is no immediate risk to nuclear power production in Europe if Niger cuts its deliveries of uranium. The agency states that utilities in the EU have sufficient inventories to last for three years.
The military coup in Niger, which saw President Mohamed Bazoum deposed and detained, has been justified by the coup leaders as a means of safeguarding the country from a deteriorating security situation and poor economic and social governance.
Overall, the coup in Niger has raised concerns about the stability of the uranium market and the potential impact on prices. With the country being a significant producer of uranium, any disruption to its production and supply could have substantial effects on the global uranium market. The market will continue to monitor the situation in Niger closely in the coming weeks, as the full impact of the coup on uranium prices unfolds.
By: RT’s business section
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