Canada (Commonwealth) _ Uranium is making a comeback because of a renewed focus on nuclear energy as a solution to the climate crisis. Canada‘s wealth of high-grade resources could make it a nuclear “superpower” in the future. But can its potential be fulfilled?
Australian businessman Leigh Curyer had been mining uranium for nearly two decades when he noticed a shocking shift. The 2011 Fukushima nuclear plant accident in Japan drastically damaged nuclear power’s reputation around the world and led to a sharp decline in the price of the heavy metal, which is necessary for nuclear fuel.
The past five years have seen a reversal, though, as the price of uranium has increased by more than 200% globally and is now among the commodities with the best performance this year.
Businessman Mr. Curyer attributes this to a shift in mindset that started shortly after Bill Gates, the founder of Microsoft, hailed nuclear energy as “ideal for dealing with climate change” in 2018.
Four years later, the then-prime minister of the UK, Boris Johnson, promoted a plan to use nuclear power to produce at least 25% of the nation’s energy. The European Union voted shortly afterward to proclaim nuclear energy climate-friendly.
These events “catalyzed” the uranium industry, and Mr. Curyer’s company NexGen, responsible for Canada’s largest uranium mine under development, underwent a sea change. Investors from all around the world started calling him, which “had never happened in my previous 17 years in the industry,” he added.
Even though the mine won’t be economically active until at least 2028, NexGen’s project, which is situated in northern Saskatchewan’s remote, uranium-rich Athabasca Basin, is currently valued at around $4 billion (£2.98 billion).
NexGen’s project alone has the potential to overtake Kazakhstan as the world’s top uranium producer in the next ten years if regulators give their complete approval.
While established firms reopened dormant mines, other businesses have hurried to Saskatchewan to take advantage of the boom and launch their own exploration ventures there.
According to mining corporations, Canada’s abundant resources will play a significant role in nuclear energy in the future. This is because almost two dozen countries agreed to triple their nuclear energy output by 2050 at the COP28 climate summit, which will increase demand for uranium.
Nuclear energy often receives praise for its lower carbon emissions when compared to other energy sources like coal or natural gas. The World Nuclear Association reports that coal or gas still produces over 50% of power globally, while nuclear sources contribute 10%.
Following a recent UN assessment that said current policies and investments are insufficient to mitigate global warming, the focus at this year’s COP29 has been on increasing funding for nuclear projects.
The Russia–Ukraine war has intensified Canada’s need to deliver this commodity, particularly for the US, which primarily relies on Russian-supplied enriched uranium to power its commercial nuclear reactors.
Although uranium is present worldwide, Canada, Australia, and Kazakhstan possess the largest quantities. Markus Piro, a professor of nuclear engineering at McMaster University, however, says that the Athabasca Region of Canada is unique due to its extraordinarily high-grade uranium.
According to Prof. Piro, Canada has strict laws that restrict the sale of its uranium to other countries, stipulating its exclusive use for nuclear energy production. He went on to say that the country’s capacity to produce nuclear fuel from the mining through the manufacturing phases is another factor that makes it a “tier-one nuclear nation.”
After mining, uranium undergoes milling to produce calcined yellowcake. Facilities abroad can then enrich it if necessary to produce nuclear reactor fuel. Prof. Piro stated, “Not every country is like that, but we have a one-stop shop here in Canada.”
According to the Canadian government, Canada is currently the second-largest producer of uranium in the world, contributing around 13% of the total production. NexGen plans to increase it to 25% after its mine starts operating.
Over 100 nuclear power plants have reportedly shut down globally over the past 20 years.