CHAMWE KAIRA
Paladin Energy, which owns the Langer Heinrich Mine (LHM) in Namibia’s Erongo Region, says the global uranium market is being supported by a favourable long-term supply-demand outlook as governments and industries increasingly recognise the role of nuclear energy in securing reliable, low-carbon electricity.
The uranium producer said market fundamentals continue to strengthen as governments, utilities and large industrial and technology companies seek to improve energy security, meet rising electricity demand and achieve decarbonisation targets.
Paladin said global uranium demand is underpinned by the existing and expanding nuclear reactor fleet, with approximately 440 reactors currently operating worldwide, nearly 80 under construction and more than 400 planned or proposed.
China is leading new reactor development, connecting multiple reactors to the grid each year and targeting significant growth in nuclear generation capacity over the next decade.
In the United States and Canada, government policy initiatives are also supporting the expansion of nuclear generation, including new-build projects and advanced reactor technologies.
Utilities are also extending the operating lives of existing nuclear plants, increasing generating capacity and adopting longer operating cycles.
In the US, three nuclear power plants that had previously been scheduled for closure are progressing towards potential restart, according to Paladin.
The company estimates that global utilities will need to purchase approximately one billion pounds of uranium fuel over the next decade to fully meet growing requirements.
Paladin said rising electricity consumption associated with artificial intelligence, cloud computing, advanced manufacturing and the broader electrification of economies is adding to demand for reliable power.
Major technology companies, including Google, Meta, Microsoft and Amazon, are increasingly supporting nuclear power through long-term power purchase agreements with US utilities to secure continuous electricity for their digital infrastructure.
At the same time, the development of small modular reactors (SMRs) and other advanced nuclear technologies is progressing.
Paladin said the first commercial SMR is under construction in Canada, while projects in the US, UK, Poland and other countries are advancing through licensing and development stages.
According to Paladin, 38 countries have endorsed the goal of tripling global nuclear energy capacity by 2050, while about 35 countries are considering, planning or pursuing nuclear energy programmes.
Despite the anticipated increase in uranium demand, Paladin said the pipeline of new uranium production remains limited following more than a decade of under-investment in exploration, project development and mine construction.
The company said secondary uranium supplies are also declining, while permitting and development timelines for new projects remain lengthy.
The company said it is positioned to benefit from the expected growth in uranium demand through its producing, development and exploration assets in Namibia, Canada and Australia.
Paladin said the successful ramp-up of Langer Heinrich and continued progress on its project in Canada would allow the company to contribute additional uranium supply to support the expansion of nuclear energy.
The company also highlighted a significant geographic mismatch between major uranium-consuming and producing countries.
The three largest consuming markets, the US, China and France, are forecast to require approximately 131 million pounds of uranium for reactors in 2028, while their combined domestic uranium production is forecast at only about 10 million pounds.
By comparison, Kazakhstan, Canada and Namibia, the three largest projected uranium-producing countries in 2028, are forecast to produce about 143 million pounds while consuming approximately three million pounds.
