Uranium explorers are calling on Australian state governments to lift bans on uranium mining, as the fuel is poised for a long-term increase in demand driven by the global shift towards nuclear energy and decarbonisation efforts.
Australia holds nearly one-third of the world’s known uranium ore deposits, yet only South Australia and the Northern Territory currently permit uranium mining. With environmental and safety concerns deterring other states, uranium mining activity remains limited, despite prices for the mineral more than tripling this decade. This price surge reflects growing expectations for increased consumption, as 22 countries, including the US, Japan, and France, have committed to tripling their nuclear energy capacity by 2050.
The issue of uranium mining is a key topic at the annual Diggers and Dealers conference in Kalgoorlie, Western Australia. The state, known for its mining history, imposed a ban on uranium mining in 2017, though it exempted four projects that are yet to reach production. Jonathan Fisher, CEO of Cauldron Energy, criticized these bans as “nonsensical” and warned that they could cause Australia to miss out on global demand. “The time is now to remove these bans — there’s a real economic cost to not doing it,” he stated.
Environmental concerns have significantly influenced Australia’s cautious stance on uranium mining. The legacy of disasters like Chernobyl and Fukushima, along with ongoing issues from the Ranger project operated by Rio Tinto, has impacted public perception. The country’s two active uranium mines—BHP Group’s Olympic Dam and Boss Energy’s Honeywell—together produce about 9% of the world’s uranium output.
Although mining approvals are managed at the state level, the federal government has not actively promoted uranium mining, despite advocating for increased production of critical minerals essential for the energy transition. A spokesperson for Federal Resources Minister Madeleine King emphasized that decisions on uranium mining regulations are primarily state responsibilities.
The reopening of the Honeywell mine last month, after a decade-long closure due to low uranium prices, has renewed optimism in the industry. While uranium prices have fallen from February’s peak of around $106 per pound, they remain above $80. John Borshoff, CEO of Deep Yellow, noted that while current prices are not conducive to rapid exploration and development, they are expected to rise again as nuclear power gains importance in achieving net zero goals.
