Survey Of Energy Resources
URANIUM


Production

Now that nearly all of the 21 uranium-producing countries provide official reports of annual production, it is possible to have a better understanding of worldwide uranium production (China, India and Pakistan do not provide official reports). In 1999 over 90% of world production came from the 10 major producing countries (Australia, Canada, Kazakhstan, Namibia, Niger, the Russian Federation, South Africa, Ukraine, USA and Uzbekistan), each of which produced over 1000 tU. Canada continued to be the largest producer, with a 1999 output of 8 214 tU, or 25.2% of the world total; Australia retained second place, with production of 5 984 tU and a share of 18.4%, while the third largest producer was Niger, with 2 918 tU (9.0%).

The NIS have a long history of uranium production and they continue as major suppliers. Following an ongoing production decline from 1988 (15 000 tU) to 1996 (6 274 tU), aggregate annual output from these countries stabilised over the next few years, subsequently regaining an upward path to reach nearly 7 300 tU in 1999, equivalent to about 22 % of world production. There are ongoing projects to develop new uranium mines in the four NIS, using in-situ leach (ISL) technology.

Nearly 50% of the production in 1997 was from open-pit mining, versus 32% from underground. About 13% was produced using ISL technology. The balance was produced by other methods. The distribution by mine-type remained about the same in 1998. The increasing importance of open-pit mining as compared with 1996 was caused by closure of underground mines and increased output from existing large open-pit mines.

Several significant changes have occurred at production facilities worldwide. The changes include the closure of smaller centres with higher production costs. This decrease in production capacity is being offset by the expansion of the facilities of some low-cost producers, and the opening of new mines that produce from high-grade ore bodies. As a result, the world uranium production capability of existing and committed centres increased about 7% from 1997 to 1999. In Canada all production has been coming from three high-grade ore bodies located in northern Saskatchewan. For three additional new mining projects the process of regulatory and environmental approval made progress in 1998. For example, authorisation was received to use the Key Lake processing facility to process ore from the new McArthur River mine. Construction and licensing activities continued on the new McClean mine-mill project. In 1999 both the McArthur River and McClean Lake mines received their production authorisation from regulatory authorities. Both mines then started production.

In Australia the milling capacity at Ranger was expanded to 4 240 tU/year by mid-1997, while construction was under way to increase the milling capacity at Olympic Dam by more than 200% to 3 900 tU/year. This project was completed in 1999. In early 1998 the operator of the Beverley in-situ leach project commenced field testing for a new operation planned to produce 850 tU/year starting by 2000. In the USA, production decreased from 2 432 tU in 1996 to 1 810 tU in 1998. In 1998 the Uncle Sam phosphate by-product operation closed, while the new Smith Ranch ISL operation started production. No additional new projects in the US are expected to come on-stream unless market conditions become more favourable.

In other countries in 1997, mines were closed in Brazil, France, Hungary and South Africa. In 1998 the small phosphate uranium by-product plant in Belgium was closed. In 1999 Gabon closed its only mine ending a long history of production. No other new mines were brought into production in either 1997 or 1998. Brazil started its new Lagoa Real facility in 1999. Increased production in Namibia and Niger was the result of improved capacity utilisation in existing mines and mills. South Africa experienced a cut in production, because uranium is recovered primarily as a by-product of gold mining, and is thus dependent on the gold market price. Increased production costs at deep underground mines in South Africa have forced unprofitable projects to close.

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