Metal Markets Canada hikes uranium output; global share almost one-

Canada increased its uranium production in 1986 to 30.4 million lbs U3O8 (up two million lb from 1985) and continued to lead the world in production, nuexco reports in its latest annual review. The country accounted for more than 30% of the global output in 1986.

Saskatchewan was the top-producing province, claiming 59% of the national total. The Key Lake joint venture in that province was the top producer, followed by Eldorado Resources at Rabbit Lake and Amok Ltd. at Cluff Lake.

In Ontario, the output last year amounted to about 12.6 million lb, with Rio Algom’s Elliot Lake operations leading the way, followed by Denison Mines.

Nuexco forecasts an annual Canadian uranium production of approximately 30 million lb to 1990; about 85% of the country’s annual production is exported.

Exploration and development continue at the Cigar Lake deposit in Saskatchewan, where indicated reserves in the main mineralized pod exceed 285 million lb U3O8, grading an average 14%. The western extension of the main ore zone is thought to contain an additional 100 million lb at an average grade of 5% U3O8. Cigar Lake Mining is the joint operating company running the project; start-up isn’t expected until the early 1990s.

World-wide uranium production in 1986 was approximately 96.3 million lb, up 7% from 1985 (but down 17% from the record level of 115 million lb in 1980 and 1981). In addition to Canada, Australia and the U.S. boosted total production last year from 1985; South Africa experienced a slight drop in production.

Since 1981, Canada’s share of the global market has almost doubled, while that of the U.S. is down by more than one-half. Australia’s market share has also increased since 1981 while South Africa’s has slipped slightly.

A spot price range of $17-$18(US) per lb U3O8 for April was reported by nukem.

The Canadian Nuclear Association reports that half of Ontario’s electricity is now supplied by candu reactors.