Higher uranium output and prices are expected to underpin industry growth.
Melbourne, Australia (PRWEB) August 19, 2013
Australia has an estimated 46.0% of the world's low-cost uranium reserves and accounts for 15.0% to 20.0% of global uranium output. Over the five years through 2013-14, the Uranium Mining industry in Australia is forecast to decline at annual compound rate of 2.2% to reach $992.0 million. According to IBISWorld industry analyst Andrei Ivanov, “in 2013-14, industry revenue is forecast to grow by 8.7% on the back of increased production”.
The industry is expected to produce 8,530 tonnes of uranium oxide in 2013-14, all of which is destined for export, as there is no local market for industry output. “As such, domestic demand for the industry's output is essentially non-existent,” says Ivanov. Depending on the timing of sales, exports do not necessarily match production in any single year. In 2013-14, the industry consists of four operating establishments and four enterprises, up from three due to the start-up of the Honeymoon uranium mine in late 2011. The Uranium Mining industry is thus highly concentrated. The most significant players are BHP Billiton Limited and Energy Resources of Australia Ltd.
The nuclear catastrophe at the Fukushima nuclear reactor in Japan (following an offshore earthquake and tsunami in March 2011) undermined confidence in nuclear energy. The world's worst nuclear crisis since the meltdown of the Chernobyl reactor in 1986 prompted officials in China and India to call for reviews of their atomic energy programs. The spot price of uranium oxide, which had already retreated from highs of over US$70 per pound reached in January 2011, fell steeply in chaotic trading. Although there was a subsequent rebound, spot uranium prices continued to drift lower to about US$52 per pound by the end of October 2011. Spot prices fluctuated between US$40 and US$45 in the first half of 2013. China and India, together with other countries such as South Korea, are expected to continue their nuclear energy programs, boosting both the demand for nuclear energy and the price of uranium. Higher uranium output and prices are expected to underpin industry growth.
For more information, visit IBISWorld’s Uranium Mining in Australia industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry mine uranium-bearing ore and extract uranium compounds from the ground using chemical leaching.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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