Uranium Week: Hopes For US Uranium Reserve

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As the weekly uranium price remains unchanged, hopes continue for the funding of a US Uranium Reserve.

-US Uranium Reserve potential funding 
-US/Poland nuclear agreement
-The weekly spot price unchanged

By Mark Woodruff

The Nuclear Energy Institute this week held its annual International Uranium Fuel Seminar.

Keynote speaker Dr. Rita Baranwal, assistant secretary for the US Department of Energy’s (DOE) Office of Nuclear Energy (NE), stated the Department remains hopeful that a US Uranium Reserve will be funded in the Fiscal Year 2021.

This was originally proposed under the US Nuclear Fuel Working Group’s recommendations earlier this year, notes industry consultant TradeTech. The proposal is subject to agreement on a funding commitment, which requires both houses of Congress to agree.

Under the Uranium Reserve program, NE would purchase uranium directly from domestic mines and contract for uranium conversion services. The new stockpile is expected to support the operation of at least two US uranium mines, re-establish active conversion capabilities, and ensure a backup supply of uranium for nuclear power operators in the event of market disruption.

US/Poland Sign Nuclear Agreement

US Secretary of Energy Dan Brouillette and Poland’s Secretary of State for Strategic Energy Infrastructure Piotr Naimski this week discussed the signing of the first Intergovernmental agreement to cooperate on the development of Poland’s civil nuclear power program.

TradeTech reports the US and Poland will work together on a report delivering a design for implementing Poland’s program. This will also cover potential financing arrangements. The 30-year agreement provides the report will be worked on over the next 18 months.

“This will be the basis for US long-term involvement and for the Polish government to take final decisions on accelerating the construction of nuclear power plants in the country," a US Department of Energy statement explained.

The agreement also defines areas of cooperation for decades to come, both in support of relevant business entities, as well as government-led efforts, notes TradeTech. These range from regulatory, research and training, through developing supply chains, raising public awareness, to joint cooperation on projects in Europe.

Company News

A five-year production record was announced at Olympic Dam, when BHP Group ((BHP)) released first quarter results. While beating the expectations of stockbroker Morgans, management has shelved plans to expand Olympic Dam after drilling results failed to confirm earlier hopes. Uranium is produced as a by-product at the project in South Australia.

Meanwhile, at BHP’s other South Australian project named Oak Dam, the third phase of an exploration drilling program continues to deliver encouraging results. Further high grade mineralised intercepts of copper, with associated uranium, gold and silver were confirmed.

Uranium Pricing

TradeTech’s Weekly Uranium Spot Price Indicator was unchanged at US$29.70/lb last week.

While the weekly spot price has shown little upward movement for several months, the Indicator currently sits 23% above its value from a year ago and has increased nearly 20% since the beginning of the year.

The Weekly Spot Price Indicator averaged a 0.5% weekly increase in 2020. The average weekly uranium spot price for 2020 is US$29.69/lb, US$3.85/lb above the 2019 average.

Spot uranium transactional volume totalled approximately 1.1 million pounds U3O8 equivalent this week in six transactions. Buyers this week included utilities, traders, and producers.

TradeTech's term price indicators are unchanged at US$34.00/lb (mid) and US$37.00/lb (long).

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