BAKU, Azerbaijan, August 16. The U.S. Energy Information Administration (EIA) has announced a dramatic increase in US uranium production for the first quarter of 2024, Trend reports.
According to the EIA’s outlook, U.S. miners produced over 82,000 pounds of uranium concentrate, surpassing the total output for all of 2023. In comparison, domestic uranium mines only produced 50,000 pounds of triuranium octoxide (U3O8)—also known as uranium concentrate—in 2023, a steep drop from the 194,000 pounds recorded in 2022.
The EIA attributes the decline in 2023 production primarily to the shutdown of the White Mesa Mill in Utah, the country’s sole operating conventional uranium mill. During that year, uranium concentrate production was limited to five in-situ recovery facilities, including four in Nebraska and one in Wyoming.
Signs of a resurgence in U.S. uranium mining are evident in the EIA’s report. Exploration and development activity has surged, with the number of exploration holes drilled leaping from 260 in 2021 to 1,930 in 2023. Drilling depth also increased substantially, reaching just over one million feet last year, up from 123,000 feet in 2021. Additionally, the workforce in uranium exploration grew from 42 full-time employees in 2021 to 110 in 2023.
Purchases of uranium concentrate by U.S. civilian nuclear power reactors also saw a significant rise, as highlighted by the EIA. In 2023, these reactors acquired 51.6 million pounds of uranium concentrate, marking a 27% increase from the previous year. The average price paid for uranium rose to $43.80 per pound, up 12% from $39.08 per pound in 2022.
This price increase aligns with a broader trend of rising uranium prices over the past five years. The EIA attributes this rise to the global supply-demand balance stabilizing after a surplus post-Fukushima, the impact of Russia’s invasion of Ukraine on energy policies, and increased global uranium consumption driven by ongoing nuclear reactor constructions.
Most of the uranium purchased in 2023 was of foreign origin, according to the EIA. Canada supplied the largest share at 27%, followed by Australia and Kazakhstan at 22% each. Uranium from Russia constituted 12% of the total, with Uzbekistan providing 10%. Domestic uranium supplied 5% of the total purchases, maintaining the same proportion as in 2022.