{"id":81105,"date":"2024-10-09T09:34:00","date_gmt":"2024-10-09T09:34:00","guid":{"rendered":"https:\/\/resourcework2.devstudio.work\/?p=81105"},"modified":"2024-11-13T17:01:03","modified_gmt":"2024-11-13T17:01:03","slug":"putin-uranium-canada","status":"publish","type":"post","link":"https:\/\/resourcework2.devstudio.work\/?p=81105","title":{"rendered":"Putin’s uranium export restrictions are a gift for Canada"},"content":{"rendered":"

Good to see Russian President Vladimir Putin proposing\u00a0restrictions<\/a>\u00a0on Russian exports of uranium in retaliation for Western sanctions on Russian oil, gas, and LNG.<\/p>\n

“Please take a look at some of the types of goods that we supply to the world market,\u201d he told Prime Minister Mikhail Mishustin. \u201cMaybe we should think about certain restrictions \u2014 uranium, titanium, nickel.\u201d<\/p>\n

Russia is the world’s sixth-largest uranium producer and has about 44% of global uranium enrichment capacity.<\/p>\n

Canada, once the world’s largest uranium producer, is now the world\u2019s second-largest producer of uranium, behind Kazakhstan. Canada accounts for roughly 13% of total global output, and Putin\u2019s comment quickly increased the value of shares of our uranium producers.<\/p>\n

The World Nuclear Association says Canada could now play a major role in meeting future world demand, as several key nations eye nuclear energy to meet growing demand for electrical power and for power production that does not use fossil fuels.<\/p>\n

The Cigar Lake mine in Saskatchewan is one of the world’s richest in uranium. The McClean Lake mill, which processes it, is operated by a subsidiary of France’s Orano and sells 40% of its production to the French electric utility company, EDF.<\/p>\n

Australia\u2019s Paladin Energy moved in June to buy Canadian uranium explorer Fission Uranium for $1.14 billion. That purchase is now undergoing a national security review ordered by Ottawa.<\/p>\n

Canada\u2019s 34 \u201ccritical metals\u201d and minerals have been taking up more of Ottawa\u2019s interest, with the feds pushing their\u00a0Critical Minerals Strategy<\/a>\u00a0and\u00a0making it harder<\/a>\u00a0for foreign firms to acquire Canada\u2019s biggest mining companies.<\/p>\n

Now, Saskatchewan\u00a0has vowed<\/a>\u00a0to compete with China in processing and production of rare earths and to become the prime North American source for metals used to make magnets for electric vehicles and wind turbines.<\/p>\n

All this comes as\u00a0one outlook<\/a>\u00a0says the global mining industry will require US$2.1 trillion in new investments by 2050 to meet the raw material demands of a net-zero-emissions world. The report says critical energy-transition metals, including aluminum, copper, and lithium, could face supply deficits this decade\u2014some as early as this year.<\/p>\n

In Canada, a\u00a0new report<\/a>\u00a0from consultants EY says \u201ccapital is king\u201d and is the top risk facing the mining industry this year, as tough financing and economic conditions make it more difficult to deliver the metals needed for the energy transition.<\/p>\n

\u201cWe need about $1 trillion in investment to produce enough metals for the energy transition,\u201d says Theo Yameogo, EY Americas and Canada mining and metals leader. \u201cWe haven\u2019t seen that coming in. Now it\u2019s the #1 (risk) because people are really worried. We\u2019ve seen some M&A, but we haven\u2019t seen direct investment in the mining sector.\u201d<\/p>\n

This points to the need for Canadian governments to simplify and speed up regulatory processes for new mines. It can take 12 to 15 years before a proposed mine can get through all the red tape from assorted governments and get into its first production. Jonathan Wilkinson, federal minister of energy and natural resources, announced in March that Canada would soon launch an Action Plan to speed up the mine-permitting process. But we still don’t see it.<\/p>\n

Also in mining news:<\/p>\n