GoviEx encourages African uranium-producing countries to seize market opportunity
The mining company GoviEx Uranium, active in Niger, Zambia and Mali, considered that the recent social unrest in Kazakhstan represents an opportunity to be seized for African uranium-producing countries.
Indeed, Kazakhstan is a key player in the uranium market with 40% of the world supply. But the country is sinking into a social crisis following the riots that broke out at the start of 2022, at the risk of creating disruptions in its uranium supply chain.
This type of situation may, however, encourage buyers to diversify their sources of supply, with investments in new projects. Despite the fact that the uranium market is special, because nuclear power plants, which concentrate demand, make supplies over the long term and remain little subject to temporary disturbances.
However, the energy transition that is announced by 2035 is accelerating the need for low-carbon energy production, a renewed interest in nuclear power and therefore in the untapped reserves of uranium.
Already, according to data from market analyst UxC reported by Bloomberg, on Wednesday, January 5, 2022, the price of uranium has risen 8% to over $450.
Uranium producers in Africa should seize the opportunity and redouble their efforts to increase their supply and become essential producers of this raw material in the same way as Kazakhstan.
