Protests In Kazakhstan May Trigger Another Rise In Uranium Prices

14

Kazakhstan, the world’s largest uranium producer, is struggling to respond to large-scale protests that have posed the country’s leadership’s greatest challenge in decades. With the emergence of the risk of political instability, uranium prices seem likely to rise.

Turbulence in Kazakhstan

Since the New Year’s holiday in 2022, due to the rapid increase in oil and gas prices, people’s protests have erupted in many areas, including Aktau, the capital of Kazakhstan’s Mangystau state, and Almaty, the country’s largest city. On January 5, local time, Kazakhstan President Tokayev Sassy-Jomart Tokayev declared a state of emergency throughout Kazakhstan and signed a presidential decree approving the resignation of the government, hoping to reorganize the government to quell popular grievances.

Tokayev said he called on the leaders of the Russia-led Collective Security Treaty Organization to help deal with the protests that swept Kazakhstan.

According to a report from the Russian Satellite News Agency on the 6th, Tokayev signed a presidential decree on the 5th. The Chairman of the Collective Security Treaty Organization’s Collective Security Committee and Armenian Prime Minister Pashinyan said on the 6th that the national security of Kazakhstan has been affected by external interference and other factors. In response to Tokayev’s request, the Collective Security Organization has decided to send a peacekeeping force to Kazakhstan.

Kazakhstan produces more than 40% of the world’s uranium and is the world’s largest supplier of uranium. According to published data, Kazakhstan has 1.69 million tons of uranium reserves, accounting for about 20% of the world, ranking second in the world, second only to Australia. According to the Russian Satellite News Network, it takes 9.3 US dollars to mine 1 pound of uranium in Kazakhstan, which is the lowest cost in the world.

Given that Kazakhstan is the world’s largest supplier of uranium, “This is like Saudi Arabia’s problem with oil. “Said Jonathan Hinze, President of UxC LLC, a leading nuclear fuel market research and analysis company

Uranium prices may rise again

Jonathan Hinze believes: “If there are any uncertainties in the supply of (uranium) or even short-term changes, the holders of uranium are often unwilling to sell it, but will choose to stand still.”

He said: “Even if there is no (uranium) shortage now, people are now taking advantage of this possibility of causing a shortage to trade.”

UxC data shows that Wednesday’s uranium price rose by nearly 8% from Tuesday’s $42 per pound to $45.25.

In September, uranium prices once rebounded sharply by 24%, marking their best monthly performance since the end of 2008. Investors are betting that as governments no longer use fossil fuels, nuclear energy will usher in a renaissance.