History of Production

Current Market
The world’s top uranium producers are Canada (28% of world production) and Australia (23%). Other major producers include Kazakhstan, Russia, Namibia and Niger.
[World Nuclear Association. 06 Feb. 2007. http://www.world-nuclear.org]

Purification facilities are almost always located at mining sites while facilities for enrichment are found in those countries that produce significant amounts of nuclear electricity. Large commercial enrichment plants operate in France, Germany, the Netherlands, the United Kingdom, the United States and Russia.

These nations form the core of the uranium market and influence considerable control over all buyers. The "Uranium Cartel," as it became known, was the alliance of the major uranium producing nations. Representatives of these countries met in Paris, France, in February 1972 to discuss the “orderly marketing” of uranium. Though seemingly innocuous, they had, amongst themselves, a monopoly in the uranium market and were choosing to exercise it.

Global demand
Global demand for uranium rose steadily from the end of World War II, which was largely driven by the nuclear weapons procurement programs. This trend lasted until the early 1980s, when changing geopolitical circumstances and concerns over nuclear power plants suppressed demand.

The production of a series of large hydro-electric power stations also aided in the depression of the global market in the early '70s. During this time, large uranium inventories accumulated. In fact, until 1985, the Western uranium industry was producing material much faster than nuclear power plants and military programs were consuming it. Uranium prices slid throughout the decade with few respites, leaving the price below $10 per pound in 1989.

As uranium prices fell, producers began curtailing operations or exiting the business entirely. Uranium inventories shrunk significantly which has lead to the present concern of dwindling supplies of the element.