• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 14 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours Reality catching up with EV forecasts
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 12 days US Oil Independence is a myth and will always be a myth
  • 2 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 8 days The Federal Reserve and Money...Aspects which are not widely known
  • 16 days Natural gas price to spike when USA is out of the market
  • 12 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 15 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 16 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Critical Uranium Shutdown is Going Ahead

A brief news item yesterday may be one of the most important happenings in commodities for years.

The coming shutdown of one of the largest uranium mines on the planet.

I noted a few weeks back that workers at Cameco's McArthur River uranium mine in northern Canada were contemplating labour action. And yesterday that threat came to fruition--with the major uranium company announcing that mineworkers' unions have authorized a full strike.

It appears this action is going to bring McArthur River to a complete standstill. With Cameco saying it is now initiating shutdown activities at the mine, and the associated Key Lake uranium processing facility.

ADVERTISEMENT

The strike is officially slated to begin on August 30. So it looks like production here will now taper off, leading up a full stop by that date.

As I mentioned previously, it's hard to understate the effect this stoppage could have on uranium supply. Given that McArthur River is one of the world's largest and richest uranium producers, currently putting out nearly 15% of global supply itself.

Interestingly, uranium prices have been rising the last few weeks. Up over 10% since the beginning of August, when news of the potential strike action at McArthur began to surface--currently selling for $31 per pound.

ADVERTISEMENT

This is the most notable increase in prices the uranium market has seen for years (albeit from a very low base, with prices having recently fallen to a near-decade low of $28).
Suggesting that buyers are paying close attention to the events at McArthur, and the potential effects on global uranium supply.

Cameco noted that it is continuing discussions with mineworkers over the next 72 hours leading into the strike. So a last-minute solution is still a possibility.

But absent such a five-to-midnight deal, supply and demand is about to get much tighter in this space.

Here's to unexpected events,

Dave Forest


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News