Kazakhstan surpassed Canada to become the world's leading uranium producer after raising production by 63% to 13,500 metric tons in 2009, state nuclear fuel company Kazatomprom said Wednesday.
Kazakhstan surpassed Canada to become the world's leading uranium producer after raising production by 63% to 13,500 metric tons in 2009, state nuclear fuel company Kazatomprom said Wednesday.

Kazatomprom said in a statement that it would produce an additional 400 tons by the end of this year, while its 2010 production was expected to reach 18,000 tons.

Kazatomprom, which has Canada's Cameco Corp. (CCJ), France's Areva SA (CEI.FR) and Japan's Toshiba Corp. (6502.TO) among its partners in production ventures in Kazakhstan, said the increased output came from new mines and production expansion at existing ventures.

"This new production has offset supply disruption in Canada and has quietly exerted downward pressure on [uranium] prices," said London-based Fairfax IS analyst John Meyer.

U.S.-based Ux Consulting Company, which tracks the uranium market, said Monday the weekly spot price for uranium was $44.50 a pound. Uranium skyrocketed from $7.10/lb at the beginning of 2001 to $136/lb in mid-2007, but has since declined markedly. In 2009 prices have stayed below $55/lb.

Meyer said the lower prices can hurt uranium exploration companies and inhibit new supplies. But longer term, new nuclear build--especially in China --indicates rising demand for the fuel.

Kazatomprom said it expected a shortage of uranium on global markets as of 2016 and that natural resource-rich Kazakhstan would raise its annual output next year to 18,000 tons to cover expected shortages.

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