Australia sits on the world’s largest recognized recoverable assets of uranium — 1.68 million tonnes as of 2021. Nonetheless, nuclear energy is banned in Australia, and the nation makes use of no a part of this materials for its personal vitality wants.
As a substitute, Australia sells this precious commodity, with uranium accounting for 17 p.c of the nation’s vitality exports.
Learn on to study extra about Australia’s position within the uranium trade with a deal with its working mines and future producers. Mine data and information is sourced from the mining database MDO, firm data and the World Nuclear Affiliation.
What are Australia’s main uranium mines?
Australian uranium manufacturing centres round three mining complexes in South Australia — Olympic Dam, Honeymoon and Beverley-4 Mile.
Australia was the fourth largest producer of uranium in 2022, producing 4,553 tonnes, representing about 8 p.c of complete world uranium manufacturing, based on the newest information from the World Nuclear Affiliation.
Standing: Working
Operations: underground mining and floor; built-in processing facility
FY2024 manufacturing: 3.603 thousand tonnes uranium oxide focus
In-situ confirmed and possible reserves: 558 million tonnes at 590 g/t uranium
World mining big BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) Olympic Dam isn’t solely the largest uranium mine in Australia, it is also the largest recognized uranium orebody on the earth and one of many world’s largest uranium mines by output. Nonetheless, it’s primarily a copper mine that produces uranium as a by-product together with gold and silver.
First getting into manufacturing in 1988, the mine has each underground and floor operations and has a totally built-in processing facility, which suggests it’s able to extracting, refining and processing mined commodities.
In its fiscal 12 months 2024, BHP reported manufacturing of three.603 thousand tonnes of uranium oxide focus at Olympic Dam, up from 3.406 thousand tonnes for fiscal 12 months 2023.
The Olympic Dam mine hosts in-situ confirmed and possible reserves of 558 million tonnes grading 1.85 p.c copper, 590 g/t uranium, 0.67 g/t gold and 4 g/t silver and low-grade sulphide confirmed and possible reserves of 42 million tonnes grading 0.84 p.c copper and 280 g/t uranium. Its mine life is predicted to run till 2081.
2. 4 Mile Mine
Standing: Working
Operations: In-situ restoration
2022 manufacturing: 1.503 thousand tonnes of U3O8
Confirmed and possible reserves: Not accessible
One other of Australia’s largest uranium mines is the 4 Mile in-situ restoration (ISR) uranium mine which hosts three deposits. Operated by personal firm Quasar Assets, a subsidiary of Common Atomics, 4 Mile was introduced into manufacturing in 2014 with an anticipated mine lifetime of 15 years. One other Common Atomics subsidiary, Heathgate Assets, owns the past-producing Beverley ISR mine, the place uranium ore from 4 Mile is taken to be processed on the Beverly plant.
As it’s a privately-held asset, manufacturing figures are usually not available. Nonetheless, the World Nuclear Affiliation estimates that operations at 4 Mile produce a median of 2,000 tonnes of U3O8 every year. The newest reported manufacturing estimate is 1.503 thousand tonnes of U3O8 for 2022.
Standing: Ramping up from restart in April 2024
Operations: In-situ restoration
FY2025 manufacturing steerage: 850,000 kilos of U3O8
Mineral assets: 71.6 million kilos U308
First found within the 1970’s, the Honeymoon ISR uranium mine was initially introduced into manufacturing in 2011. After two brief years, the mine was closed as a consequence of technical difficulties and low uranium costs.
Boss Vitality (ASX:BOE,OTCQX:BQSSF) bought the traditionally producing asset from Uranium One in 2015. The Australian firm restarted uranium manufacturing on the Honeymoon mine in 2024, producing its first drum of uranium in April utilizing its lixiviant chemistry and ion-exchange know-how.
In July, the corporate accomplished its first uranium contract sale, which was delivered below a contract with European nuclear utilities. Boss Vitality reported 28,844 kilos of U3O8 in its fiscal This fall 2024 ended June 30, adopted by 89,516 kilos of U3O8 throughout its fiscal Q1 2025. The Honeymoon mine is on observe to fulfill its fiscal 12 months 2025 manufacturing steerage of 850,000 kilos of U3O8.
The present mine plan and current mining licence for Honeymoon covers 36 million kilos of the asset’s complete 71.6 million kilos JORC Useful resource. Boss Vitality’s Uranium Mineral Export Permission permits for 3.3 million kilos per 12 months.
What are Australia’s future uranium mines?
Australia accounts for nearly one-third of the world’s uranium deposits — 28 p.c as of 2021.
With 36 recognized uranium deposits, together with those mentioned above, the checklist of potential new mines or mines being introduced again on-line is lengthy. Listed here are three of the most important uranium deposits in Australia.
1. Mulga Rock
Stage: Allowing
The Mulga polymetallic deposit is one in every of Australia’s largest undeveloped uranium tasks and probably the most superior in Western Australia. First found by PNC Exploration in 1979 within the Kalgoorlie area, at present it’s owned by Deep Yellow (ASX:DYL,OTCQX:DYLLF). The deposit additionally hosts copper, nickel, cobalt, zinc and uncommon earths.
The challenge is split into Mulga Rock East and Mulga Rock West, with a JORC mineral useful resource estimate of 115 million tonnes at 420 elements per million for 104.8 million kilos U3O8, together with confirmed and possible reserves of 42 million kilos U3O8. At the moment, uranium manufacturing capability for Mulga Rock is projected to be 3.5 million kilos per 12 months over a mine lifetime of greater than 15 years. A revised definitive feasibility research is underway for the proposed open pit mine and slated for completion in late 2025.
2. Yeelirrie
Stage: Allowing (on maintain)
The Yeelirrie deposit is one other vital uranium challenge found throughout the 1970’s in Western Australia. At present it’s owned by uranium big Cameco( TSX:CCO,NYSE:CCJ) which has proposed two open pits as a part of future mining operations on the challenge. Yeelirrie’s present JORC mineral useful resource estimate stands at 128.1 million kilos U3O8 at a median ore grade of 0.15 p.c.
The Western Australia authorities rescinded state approval for uranium mining at Yeelirrie in January 2022 as the corporate had not achieved substantial graduation of the challenge by that date. Cameco has the choice to reapply for an extension sooner or later if all different required regulatory approvals are in place. Cameco was granted federal approval for mining at Yeelirrie in 2019 and the allow extends till 2043.
Cameco isn’t conducting or planning any additional work on the challenge presently.
3. Samphire
Stage: Preliminary financial evaluation
Alligator Vitality’s (ASX:AGE) Samphire ISR uranium challenge is in South Australia. The Samphire challenge hosts the Blackbush uranium deposit and the Plumbush uranium prospect with a JORC mineral useful resource estimate of 12.4 million tonnes at a grade of 640 elements per million for 17.5 million kilos U308 within the indicated and inferred classes.
Alligator Vitality accomplished an up to date scoping research in December 2023 primarily based on an annualised ISR manufacturing goal of 1.2 million kilos. As of October 2024, a area restoration trial pilot plant is underway in preparation for a feasibility research to happen in 2025.
What is the outlook for uranium and nuclear energy?
After struggling low costs following the 2011 Fukushima nuclear catastrophe, the uranium market rallied in 2023. This led the uranium spot worth to hit a serious milestone in January 2024 to push previous the US$100 per pound stage for the primary time in 17 years. Since then, the worth of uranium has eased again into the US$80 vary, however analysts are bullish on as soon as once more seeing triple digit uranium.
Because the world continues to pivot towards net-zero emissions, nuclear vitality is predicted to search out rising favour from international locations trying to shift to cleaner sources of vitality technology. Based on the US Vitality Data Affiliation, nuclear technology is anticipated to develop by greater than 22 p.c between 2022 and 2050.
A report from the World Nuclear Affiliation states that uranium manufacturing will stay steady by way of 2030, after which lower by almost half from 2030 to 2040, highlighting the necessity for elevated exploration and manufacturing earlier than that drop-off level to keep away from future provide disruptions.
Based on a latest report by Sprott (TSX:SII,NYSE:SII), the provision of uranium is prone to path behind demand, with an anticipated provide shortfall of about 1.5 billion kilos by 2040. This widening hole in provide and demand may result in elevated uranium costs within the coming years.
Its larger costs that the uranium mining trade must additional increase current operations and produce deposits into manufacturing.
“There are such a lot of shifting elements to manufacturing cycles. And also you throw in geopolitics, you throw in coups occurring all over the world, you throw in struggle, you throw in provide and materials shortages. And you then throw in larger tax and better inflation prices that that are not priced in initially. And also you get the right storm for realizing that it is simply going to get more durable and more durable to provide low-cost uranium,” Gerardo Del Actual, co-founder of Digest Publishing and editor of Day by day Revenue Cycle, informed the Investing Information Community.
That is an up to date model of an article first printed by the Investing Information Community in 2021.
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Securities Disclosure: I, Matthew Flood, maintain no direct funding curiosity in any firm talked about on this article.
