Rajesh Sinha
S Gayathri
Arjun Srivastava

2011SMN6502
2011SMN6509
2011SMN6518
Uranium:
 Naturally occurring with several isotopes
 U235 is fissile and used as a fuel in nuclear reactors
 Concentrat...
Uranium extracted through mining of natural mining
deposits
2. U235 extracted from decommissioned nuclear
weapon warheads ...
Mined Uranium
 US-Russian





Highly

Enriched

Uranium

(HEU)

Agreement
Government-industry partnership
Russia is dismantling a ...
 The Uranium market has a history of volatility
 Not only moves with supply and demand forces, but

also with geopolitic...
1. Specified Pricing


Either fixed price, or base price plus adjustment for
inflation

2. Market-Related Pricing
 based...
 Negotiated Pricing contracts in which prices are

agreed to periodically (usually annually) by the buyer
and seller
 Hy...
Graph courtesy of UxC
Source: http://www.uxc.com
 Nuclear Non-Proliferation Regime
 Nuclear Non-Proliferation Treaty

 International Framework for Nuclear Energy



...
 Period between Signing of Contract and Shipment
 Long-term contracts signed well before first delivery under

the contr...
 November 1991 - imports of uranium products from the








then-Soviet Union were being dumped in the US market
Oc...
Australia
 31% of the world reserves
 World's third-ranking producer, behind Kazakhstan
and Canada
 2012 Australia prod...
Source: http://www.world-nuclear.org
Source: http://www.world-nuclear.org
 15% of the world's uranium resources
 28% of world production in 2009, then 33% in 2010

and about 35% in 2011
 Kazato...
 Uranium exploration in Kazakhstan started in 1948
 Uranium production and revenue in Kazakhstan is

tabulated below

So...
 BN-350 fast reactor was built under Russia's Minatom







supervision
Plant has since been decommissioned
Plans fo...
 Nuclear power is the primary source of energy
 Out of a total production of 541 TWh of electricity in

France, 75% was ...
 exported 45TWh of electricity to its neighbours

making it the biggest energy exporter in the EU in
2012
 success story...
Source: http://en.wikipedia.org/wiki/Nuclear_power_in_France
 Active

nuclear reprocessing program, at the
COGEMA La Hague site
 Undertakes enrichment work, MOX fuel fabrication,
an...
 Does not mine uranium for the front end of the fuel

cycle domestically
 French companies have various holdings in the
...
 World's largest supplier of commercial nuclear power
 2013 - nuclear power provided by 100 commercial

reactors operati...
 Considerable opposition to the use of nuclear power

in the U.S
 132 U.S. nuclear plants built
 52% of the 253 origina...
 Mining
 4th largest uranium reserves in the world
 In 2001, US mined only 5% of the uranium consumed

by its nuclear p...
 Reprocessing
 Potential to contribute to nuclear proliferation, and is

vulnerable to nuclear terrorism
 Obama adminis...
 Pricing of uranium is usually through long term

contracts
 Notwithstanding, there is a thriving spot market
for uraniu...
 Australia
 Largest reserves of uranium
 It is not the largest exporter due to the anti-nuclear policies of the

countr...
World trade in uranium
World trade in uranium
World trade in uranium
World trade in uranium
World trade in uranium
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World trade in uranium

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A brief study of the world trade in Uranium and the major stakeholders

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World trade in uranium

  1. 1. Rajesh Sinha S Gayathri Arjun Srivastava 2011SMN6502 2011SMN6509 2011SMN6518
  2. 2. Uranium:  Naturally occurring with several isotopes  U235 is fissile and used as a fuel in nuclear reactors  Concentration to be increased to 3 to 4% for use in civil nuclear reactors  Mined in form of uranium oxide U3O8
  3. 3. Uranium extracted through mining of natural mining deposits 2. U235 extracted from decommissioned nuclear weapon warheads and blended down to commercial enrichment 1.
  4. 4. Mined Uranium
  5. 5.  US-Russian     Highly Enriched Uranium (HEU) Agreement Government-industry partnership Russia is dismantling a portion of its old Soviet-era nuclear warheads HEU is removed from warheads and blended with uranium of lower U235 enrichment to produce LEU Shipped to USA
  6. 6.  The Uranium market has a history of volatility  Not only moves with supply and demand forces, but also with geopolitics  Presently the economically recoverable price of Uranium is US$ 130/kg  World’s measured Uranium resources will last 80 years at this price and current consumption
  7. 7. 1. Specified Pricing  Either fixed price, or base price plus adjustment for inflation 2. Market-Related Pricing  based on the uranium market price at or near the time of delivery, and/or some other published market index  price is the market price less a discount (or plus a premium)  greater level of uncertainty
  8. 8.  Negotiated Pricing contracts in which prices are agreed to periodically (usually annually) by the buyer and seller  Hybrid Pricing involves a market index which is averaged with either a base-escalated, fixed, or costrelated price  Cost Related Pricing defined by a price that is tied to the cost of production from a uranium mine  Portfolio or Realised Prices Suppliers and utilities generally operate a portfolio strategy by concluding contracts periodically over the long term
  9. 9. Graph courtesy of UxC
  10. 10. Source: http://www.uxc.com
  11. 11.  Nuclear Non-Proliferation Regime  Nuclear Non-Proliferation Treaty  International Framework for Nuclear Energy     Cooperation (formerly Global Nuclear Energy Partnership) Fissile Material Cut Off Treaty (FMCT) Nuclear Suppliers Group (NSG) Indian Nuclear Liability Law Australian Government Policy on Trade in Uranium
  12. 12.  Period between Signing of Contract and Shipment  Long-term contracts signed well before first delivery under the contracts  Take a year or more to finalise after acceptance of the relevant commercial terms like quantities, delivery schedules, price, and delivery location  Delivery Formats  Natural uranium (U3O8 and UF6) is nearly always sold by “book transfer”  It is delivered to the facility, sampled and weighed by the processor  A “delivery” under a sales contract is then made by the seller giving notice to the facility owner that the uranium ownership is to be transferred
  13. 13.  November 1991 - imports of uranium products from the     then-Soviet Union were being dumped in the US market October 16, 1992 - governments of the six uraniumproducing CIS countries signed quota-based suspension agreements March 1994 - amendment to the Russian agreement was finalized December 7, 2000 - US enrichment company, USEC Inc., petitioned DOC to conduct an investigation of dumping into the USA of enriched uranium imports from Europe December 31, 2001 - DOC ruled that both European enrichers, AREVA NC and Urenco Ltd, were receiving unfair subsidies and, in the case of Eurodif, dumping LEU in the US market
  14. 14. Australia  31% of the world reserves  World's third-ranking producer, behind Kazakhstan and Canada  2012 Australia produced 8,244 tonnes of U3O8  Uses no nuclear power
  15. 15. Source: http://www.world-nuclear.org
  16. 16. Source: http://www.world-nuclear.org
  17. 17.  15% of the world's uranium resources  28% of world production in 2009, then 33% in 2010 and about 35% in 2011  Kazatomprom- national atomic company  set up in 1997 and owned by the government  controls all uranium exploration, mining and imports and exports of nuclear materials  forged major strategic links with Russia, Japan and China
  18. 18.  Uranium exploration in Kazakhstan started in 1948  Uranium production and revenue in Kazakhstan is tabulated below Source: Kazatomprom, currency KZT million
  19. 19.  BN-350 fast reactor was built under Russia's Minatom     supervision Plant has since been decommissioned Plans for future nuclear power include 300 MWe class units for the western part and smaller cogeneration units in regional cities Proposals for new nuclear power plant near Lake Balkhash, north of Almaty, and for one or two 300 MWe units at Aktau In 2012, government was reviewing draft master plan of power generation development in the country until 2030
  20. 20.  Nuclear power is the primary source of energy  Out of a total production of 541 TWh of electricity in France, 75% was produced using nuclear powerhighest percentage in the world  Électricité de France (EDF) - main electricity generation and distribution company  It is owned 85% by the French Government  The company manages 59 nuclear power plants
  21. 21.  exported 45TWh of electricity to its neighbours making it the biggest energy exporter in the EU in 2012  success story - providing cheap energy with low CO2 emissions  François Hollande's victory in the 2012 Presidential Election - closing the oldest 24 reactors by 2025, reduce share of nuclear power in France to 50%
  22. 22. Source: http://en.wikipedia.org/wiki/Nuclear_power_in_France
  23. 23.  Active nuclear reprocessing program, at the COGEMA La Hague site  Undertakes enrichment work, MOX fuel fabrication, and other activities at the Tricastin nuclear power centre  2/3 of the output of the nuclear plant at Tricastin powers the domestic enrichment which meets 100% of France's enrichment requirement  Carried out reprocessing of fuel from other countries like the United States and Japan
  24. 24.  Does not mine uranium for the front end of the fuel cycle domestically  French companies have various holdings in the Uranium market  10,500 tonnes per year coming from various locations  Canada – 4500 tU/yr.  Niger – 3200 tU/yr.  Disposal of high level nuclear waste planned at Meuse/Haute Marne Underground Research Laboratory deep geological repository
  25. 25.  World's largest supplier of commercial nuclear power  2013 - nuclear power provided by 100 commercial reactors operating at 65 nuclear power plants  Produce a total of 790 TWh of electricity- 19.2% of the nation's total electric energy generation in 2011  Following the "Three Mile Island" accident in 1979, no new nuclear power plant had been started since 1974
  26. 26.  Considerable opposition to the use of nuclear power in the U.S  132 U.S. nuclear plants built  52% of the 253 originally ordered  21% were permanently and prematurely closed  27% have completely failed for a year or more at least once  Surviving U.S. nuclear plants produce ≈ 90% of their full-time full-load potential - not fully dependable
  27. 27.  Mining  4th largest uranium reserves in the world  In 2001, US mined only 5% of the uranium consumed by its nuclear power plants.  Remainder was imported from Russia and Australia.  After 2001, with uranium prices steadily increasing, mining has been revived  Fuel Enrichment  United States Enrichment Corporation (USEC) performs all enrichment activities for U.S. commercial nuclear plants.  Fuel Vendors  All are light water fuel fabrication facilities because only LWRs are operating in the US
  28. 28.  Reprocessing  Potential to contribute to nuclear proliferation, and is vulnerable to nuclear terrorism  Obama administration has disallowed reprocessing of nuclear waste, citing nuclear proliferation concerns  Waste Management  As plants continue to age, many on-site spent fuel pools have reached their capacity  Prompted creation of dry cask storage facilities  Approximately 65,000 tons of nuclear waste now in temporary storage throughout the U.S  Plant Decommissioning  Expensive, tedious and long process  13 reactors have permanently shut down
  29. 29.  Pricing of uranium is usually through long term contracts  Notwithstanding, there is a thriving spot market for uranium which is traded like any other commodity amongst the countries which are eligible for the same  The principles of supply and demand are equally applicable to the price of uranium  Number of international treaties which control and limit the trade in uranium - non-tariff barriers to trade
  30. 30.  Australia  Largest reserves of uranium  It is not the largest exporter due to the anti-nuclear policies of the country  Kazakhstan  Largest exporter  Developing technologies to move up in the value chain as most of the enrichment and fuel fabrication facilities are in countries who are the final end users  France  Has negligible reserves  Has the largest percentage of national electricity produced using nuclear power  USA  Main technology was developed here  But left behind by other countries like France due to the strong anti-nuclear sentiment

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