Uranium Purchases Report 1993 PDF Download

Uranium production in the United States has declined dramatically from a peak of 43.7 million pounds U[sub 3]O[sub 8] (16.8 thousand metric tons uranium (U)) in 1980 to 3.1 million pounds U[sub 3]O[sub 8] (1.2 thousand metric tons U) in 1993. This decline is attributed to the world uranium market experiencing oversupply and intense competition. Large inventories of uranium accumulated when optimistic forecasts for growth in nuclear power generation were not realized. The other factor which is affecting U.S. uranium production is that some other countries, notably Australia and Canada, possess higher quality uranium reserves that can be mined at lower costs than those of the United States. Realizing its competitive advantage, Canada was the world's largest producer in 1993 with an output of 23.9 million pounds U[sub 3]O[sub 8] (9.2 thousand metric tons U). The U.S. uranium industry, responding to over a decade of declining market prices, has downsized and adopted less costly and more efficient production methods. The main result has been a suspension of production from conventional mines and mills. Since mid-1992, only nonconventional production facilities, chiefly in situ leach (ISL) mining and byproduct recovery, have operated in the United States. In contrast, nonconventional sources provided only 13 percent of the uranium produced in 1980. ISL mining has developed into the most cost efficient and environmentally acceptable method for producing uranium in the United States. The process, also known as solution mining, differs from conventional mining in that solutions are used to recover uranium from the ground without excavating the ore and generating associated solid waste. This article describes the current ISL Yang technology and its regulatory approval process, and provides an analysis of the factors favoring ISL mining over conventional methods in a declining uranium market.