Demand for uranium on the rise

Though the Wyoming State Geological Survey does not expect a uranium boom comparable to that of the early 1970s, it predicts yellowcake will again become a major mineral product there and contributor to the state’s economy.

The price of uranium has increased to US$15.50 per lb., up from US$7.25 in March 1995, in accordance with a rise in the worldwide use of nuclear power. Industry officials expect the price to top US$20 per lb. in the near future.

Demand is growing at a time when sales of low-cost uranium from Russia and other states of the former Soviet Union are dropping.

If the upward trend in the market value of the metal continues and the price firms up, the number of in situ producers in Wyoming may increase. Rio Algom and Kennecott are among those companies poised to begin production, and Power Resources and Cogema Mining are both expected to increase output.