The future for Canadian uranium lies in the continued growth of nuclear-powered capacity and continued access to the U.S. market, according to the president of Rio Algom (TSE) of Toronto.
R. W. Ballmer, addressing a seminar on energy and industry issues organized by the Association of Major Power Consumers in Ontario, said he is looking to the free trade deal being negotiated by Ottawa and Washington to be of a substantial benefit to the industry. Rio is one of two producers of uranium i n Ontario, the other being Denison Mines (TSE). Rio turned out about 6.2 million lb of the mineral from its three Elliot Lake area mines in 1987, down about 15% from its 1986 total. (Denison production was also down. The lower output was in part the result of a 3-week strike by area workers.)
Canada, which has been the world leader in uranium production for four years, accounts for about one-third of the non-Communist world’s production. The country’s top uranium-producing province is Saskatchewan, which turns out about two-thirds of the national total.
About 85% of Canada’s uranium is exported, the major buyers being the U.S., Europe and Japan. On the domestic scene, both Rio and Denison supply Ontario Hydro with uranium on long-term contracts.
While hydro-electric facilities and coal-fired plants continue to be used by Ontario Hydro to produce electricity, nuclear power has been gaining in acceptance and by the early 1990s will meet about two- thirds of Ontario’s needs. At the moment, hydro-electric power is the most cost efficient.
Canada currently produces about 32 million lb uranium annually and Ballmer said that figure is not expected to change greatly through to the mid-1990s.
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