Kazakh state nuclear company Kazatomprom, the world's third largest uranium producer, will increase output to 18,700 tonnes by 2010, President Moukhtar Dzhakishev said on Friday. "Then, by 2015, we are planning to increase annual uranium production up to 27,000 and even 30,000 (metric) tons," Dzhakishev said in an email in response to questions from Reuters.
In 2006 the firm produced 5,280 tonnes and in 2007 output was seen at 7,200 tonnes. By comparison, global supply from primary sources in 2006 was at 46,530 tonnes, according to data from the World Nuclear Association (WNA).
The price of spot uranium rose to a record high of $136 per pound at the end of June, up from $7 in 2000. Since then the price has fallen to trade at $90 this week. "As for short-term spot sales, I can say that they bear no relation to the uranium market," Dzhakishev said, adding that the spot price was affected by speculative investors such as hedge funds.
Around 85 percent of all uranium or yellow cake is sold on long-term contracts with the long-term price at $95 per pound. It is estimated that some 10,000 tonnes of uranium is held by hedge funds with around half already lent to the market.
Hedge fund selling had put a downward pressure on uranium prices, but the moment utilities realise that prices have come off they would enter the spot market and stockpile future reserves, Dzhakishev said.
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