Uranium prices soared to a 12-year peak this week as nations seek alternatives to power amidst the previous year’s spike in oil and gas costs.
The current rate has surpassed US$65, a mark unseen since the 2011 Fukushima catastrophe in Japan. This increase is also fueled by the recognition of nuclear energy as an essential component in many countries’ plans to achieve zero carbon emissions.
Grant Isaac, the CFO of Cameco, the globe’s second-largest uranium producer, remarked to the FT, “The intersection of energy security and clean energy is evident.”
He further stated, “The era of procuring uranium at $40 has ended — and likely the same for $50 or $60. The demand for fresh resources is imminent.”
Post-Fukushima, uranium values plummeted, leading numerous governments to halt their nuclear power projects due to concerns regarding significant accidents.
Prior to the incident, rates exceeded US$75. Since Russia’s incursion into Ukraine, there has been a consistent ascent in prices, and market experts anticipate a return to those figures shortly.
