Uranium, named after the 1781 discovered planet Uranus (Greek. ouranos, “heaven”), has been discovered in 1789 by the German chemist Martin Heinrich Klaproth (1743-1817). Pure uranium is a radioactive, malleable, silvery heavy metal and belongs to the group of actinides. In the presence of air it reacts with the development of a thin layer of oxide, in fine spread state it is spontaneously ignitable. In fine powder form it scorches at a temperature of 170°C (338°F), in complex form only at 700°C (1292°F). It dissolves under hydrogen development in hot water and in diluted hydrochloric- or nitric acid. It is steady against leaches.
With a density of 19.16 g/ccm uranium is nearly as heavy as gold, but is more common than gold, silver or quicksilver. The most substantial uranium ore is the uranium oxide (pitchblende), a very radioactive mineral.
Uranium and its connections have a very poisonous effect in the human organism. Because of its radioactivity it is heavily carcinogenic.
Triuranium octoxide, better known under its chemical formula “U3O8”, is the most important component of uranium ores. The uranium oxide is the first intermediate that is recovered at the exploitation before it is transformed into uranium dioxide later on. A concentrate out of 70-90 weight-percents of uranium oxide (U3O8) is called Yellowcake, named after its yellow appearance.
The global uranium resources show big differences in geological situation, size, concentration and applicability for mining. Deposits are generally divided in categories according their reliability with which their uranium content is known (“reasonably assured resources” (RAR), “estimated additional resources category I” and II (EAR I resp. EAR II) and “speculative resources” (SR)) and according to the expected mining costs (up to 40, 80 and 130 U.S. Dollars per kg uranium resp. per lb. uranium: 15.38 U.S. Dollars, 30.77 U.S. Dollars and 50 U.S. Dollars.
To the worldwide biggest producers of uranium belong the Cameco Corp. (CAN) and Rio Tinto Plc/Ltd. (GB, AUS). With a distinct gap follow the BHP Billiton Plc/Ltd. (GB, AUS), Areva NC (F), as well as the unlisted companies TVEL Corp. (RU) and Heathgate Resources Ltd. (AUS). The remaining share (a quarter of the annual production) is covered by further companies. A selection of the approximately 500 existing companies, inclusive many explorers, is found in the list of uranium mines.
The uranium price – which is currently determined once a week – increased alone from January 2005 to April 2007 from 20 U.S. Dollars to more than 100 U.S. Dollars per lb U3O8.
The uranium trade is subject to strict national and international regulations. The International Atomic Energy Agency (IAEA) is monitoring the uranium exports on basis of bilateral contracts with each destination. In these contracts the purely civil uranium usage and control-possibilities are regulated.
The pricing is currently determined once a week (exceptions in the sector of certificates/warrants are products on single stocks resp. baskets on uranium mines).
Most important stock exchange centers: NYMEX ClearPort & CME Globex
Quotation: U.S. Dollars and Cents per pound.
Contract-cycles: 60 consecutive months.
Contract-size: 250 lbs.
Share/Save