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While the likes of Kazakhstan, Canada and Namibia are known for being dominant uranium producers, Australia lays claim to the world’s largest uranium deposit.
Olympic Dam, which is seemingly one of the most geologically and mineralogically diverse mines globally, holds more than two million tonnes of uranium oxide.
The mine also produces copper, gold and nickel from its polymetallic treasure chest, demonstrating the range of revenue pathways on offer for its owner BHP.
Olympic Dam produced 3189 tonnes of uranium in 2024. By comparison, the nameplate capacity of Boss Energy’s recently reopened Honeymoon operation is 2.4 million pounds (1088 tonnes) per year.
Boss is targeting 850,000 pounds (386 tonnes) of uranium production in the 2024–25 financial year.
BHP is looking to more than double the copper production capacity of Olympic Dam by the middle of next decade. Uranium production isn’t expected to increase at the same scale, however, which has been news to the ears of many investors.
The Australian Financial Review reported that BHP disclosed such plans in paperwork concerning its Olympic Dam expansion, with only a one per cent uplift in uranium production expected.
A boost in Olympic Dam uranium supply would flood the market and potentially suppress prices and uranium stocks.
This comes despite expectations that global uranium demand is expected to increase by 28 per cent between 2023–30, according to the World Nuclear Association (WNA).
The WNA also predicts that between 2031–40, demand would double by 51 per cent.
Honeymoon is not the only uranium upstart of recent times, with Lotus Resources looking to bring its Kayelekera project in Namibia online in the near future. Deep Yellow is also looking to commence production at its Tumas uranium project in Namibia.
Uranium prices have dropped below $US70 per pound to begin 2025, having traded above this mark since October 2023. This is still much higher than historical levels, with uranium not reaching $US40 per pound for the better part of six years between 2015 and 2021.
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