In this episode of the Prospector Podcast, Michael Fox is joined by Scott Melbye, President of the Uranium Producers of America to discuss the uranium market to discuss the many changes and impacts. They highlighted the legislative victory in May, which limited Russian uranium entering the US. Scott explained that the US had become heavily reliant on Russian uranium.
Uranium Supply and Domestic Production
Scott discussed the impact of Putin's sanctions on the uranium supply and the need for a more robust domestic fuel cycle. He mentioned that the United States had previously relied heavily on Russian and Kazakhstani uranium, but now needs to focus on domestic production. He also highlighted the importance of the Nuclear Fuel Security Act and similar legislation in expanding the strategic uranium reserve. Michael expressed confidence in the industry's ability to meet demand despite the supply squeeze, and mentioned that several US companies have restarted their mines. He also discussed the challenges faced by Kazakhstan in increasing its uranium production due to sanctions and supply chain issues.
Nuclear Power's Role in Energy Sector
Scott discusses the potential changes in the energy industry under the new Trump administration. He highlighted the strong bipartisan support for nuclear power, which is seen as a key component in achieving energy dominance and reducing carbon emissions. He also mentioned the importance of nuclear power in the context of AI and the need for adaptation in the energy sector. Michael also touched on the previous administration's support for nuclear projects and the nuclear fuel working group's conclusion on the importance of a strong American nuclear fuel cycle for national security and energy interests.
Nuclear Power and AI Boom
Scott discusses the potential for a nuclear power boom, driven by the need for energy to support the rapid growth in AI. He noted that tech companies like Microsoft and Oracle are partnering with utilities to build more reactors, and that the Trump administration's efforts to streamline regulation could accelerate this process. Michael also highlighted the importance of high assay low enriched uranium (HALU) for these new reactors, and the need for government support to ensure a steady supply. He expressed hope that the AI boom would lead to increased government support for the nuclear industry, and that the industry would be recognized as critical to national security.
Uranium Market Future and G7 Support 5 Initiative
Scott sums up the uranium market's future, noting that the long-term price is approaching $85 and the spot price is around $77. He predicted that prices could exceed $100 a pound in the New Year due to a structural deficit of 55 million pounds through 2025. Michael also mentioned the need for more domestic uranium production and the potential for sustained prices to incentivize big mines in Saskatchewan and elsewhere. He suggested that the uranium market's inefficiency contributes to price fluctuations. Lastly, he mentioned the G7 initiative called the Support 5, which aims for Western countries to trade as a block and support each other's uranium requirements.
