US uranium production bounces back from steep decline in recent years: EIA

US domestic uranium production in the first quarter of 2024 surpassed all domestic production from 2023 as the US bounced back from steep production declines in recent years, the US Energy Information Administration reported Aug. 8.

Domestic uranium concentrate, or U3O8, mining produced over 82,000 lb in the 2024 first quarter, about 64% higher than the 50,000 lb mined in all of 2023.

The 2023 production decline was caused by the country's sole uranium mill in Utah not producing, the EIA said.

The EIA identified several other factors indicating higher uranium production, including increased exploration and development holes dug in 2023, which nearly doubled year on year. Also, over 1 million feet were drilled in 2023, nearly 10 times more than in 2021, and the full-time uranium exploration employee count over doubled in 2023 compared with 2021.

Platts, part of S&P Global Commodity Insights, assessed the U3O8 current month spot price to Canada at $81.75/lb at 1 pm Aug. 8. This latest assessment is the lowest of 2024 so far, the data shows.

This latest price assessment reflects a 10% decrease from the $91.25/lb assessed Jan. 2 and a 24% decrease from Feb. 2's record price of $107/lb. However, the Aug. 8 price is a 69% hike from the $48.50/lb assessed by Platts Jan. 3, 2003.

The weighted-average U3O8 price paid by US reactor owners and operators in 2023 was $43.80/lb.

Uranium prices are elevated due to a variety of factors, including the Russian invasion of Ukraine, which caused some countries to shift away from nuclear energy, the EIA said. Uranium consumption is expected to rise as the result of the nearly 60 new reactors being built around the world, the EIA said.

An additional 110 reactors are planned, with most reactors under construction or planned in Asia, the World Nuclear Association said July 29.

A vast majority of the uranium purchased by US reactor owners and operators came from external sources, the EIA said, with domestic uranium purchasing accounting for just 5% of total 2023 purchases.

A shift in uranium import sources is expected after President Joe Biden signed a bill banning imports of Russian uranium in May. This ban takes effect Aug. 11.

The ban also unlocked $2.72 billion in federal funding to support domestic uranium enrichment capabilities. The language in the law barred the Department of Energy from accessing the money until Congress enacted the provisions of the ban.