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Overview ................................................................................................................................................. 2
Demand and Supply dynamics: ............................................................................................................... 2
Analysis of price of Uranium ................................................................................................................... 3
Recommendation to key players and policy holders: ............................................................................. 3
Conclusion: .............................................................................................................................................. 3
References .............................................................................................................................................. 4
Overview
Uranium is Australia’s second largest export and contribute significantly to the economic development
of Australia. The economics of Uranium is very complex as it is one of the most strategic resource
which the world demands. If we compare it in terms of the amount of energy it releases, we can say
that one tonne of uranium oxide generates the same amount of energy as 20 000 tonnes of black coal
which is huge. In monetary terms the total value of uranium resource which Australia has will be
around $32 billion. It is also said in the reports that reducing mining is going to cost economically
Australia a large chunk of money as the price of uranium has trebled since 2003 and is continuing to
rise (Asche, 2006).
In the recent years, there has been significant push from all the major economies to move to a more
sustainable way of producing electricity and therefore it is predicted that there will be significant
mismatch of demand and supply of in the coming years. It is also predicted that, because of this
To the extent supply is concerned, a refinement must be made between potential makers and existing
makers. The last have just a constrained capacity of reacting to changes in the monetary condition. it
is significant that in the past there has been a general tendency for average grades to rise during a
recession, and to fall during periods of economic recovery (Douglas, 1980).
While changes in pricing strategy can have a restricted effect on existing firms, but may be mining
organizations will not be keen to accept this decision — which frequently have other premiums over
just selling uranium - from proceeding to put resources into uranium investigation. Continuation of
such a pattern over time could prompt an arrival of the low uranium levels same as of the mid-1970s.
(Jean-Paul, 1978)
Conclusion:
Presently Australia is the second biggest exporter of uranium in the world and that’s why it holds a
strategic position on the maps and therefore it is very important for Australian policy makers which
should be a win-win to everyone. Nuclear power is an important component of global energy mix and
Australia is one of the key player who can address the global energy imbalance. (Amavilah, V. H. S.,
Economics)
(Asche, 2006)
References
ABARE, D. A., 2016. [Online].
Amavilah, V. H. S., Economics. The capitalist world aggregate supply and demand model for natural
uranium. Energy , 17(3).
Asche, F. O. P. a. S. M., 2006. The UK market for natural gas, oil and electricity: are prices decoupled.
The Energy Journal , 27(2).
Darmayan, P., 1980. The balance of supply and demand, a reassessmen. international symposium of
the Uranium Institute, Westbury House.
Douglas, H., 1980. Reserve/grade relationships by type of uranium deposit: key to strategies for
securing future uranium supplies. international symposium of the Uranium Institute.
Jean-Paul, 1978. The uranium market and its characteristic. Mining Journal Books.