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The uranium bubble of 2007 was a period of nearly
exponential growth Exponential growth is a process that increases quantity over time. It occurs when the instantaneous rate of change (that is, the derivative) of a quantity with respect to time is proportional to the quantity itself. Described as a function, a ...
in the price of natural uranium, starting in 2005 and peaking at roughly $300/kg (or ~$135/lb) in mid-2007. This coincided with significant rises of stock price of uranium mining and exploration companies. After mid-2007, the price began to fall again and at the end of 2010, was relatively stable at around $100/kg.


Causes

The upward trend for the prices of
uranium Uranium is a chemical element with the symbol U and atomic number 92. It is a silvery-grey metal in the actinide series of the periodic table. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons. Uranium is weak ...
was already apparent since 2003. This prompted increases in mining activity. A possible direct cause for the bubble is the flooding of the
Cigar Lake Mine The Cigar Lake Mine is a large high-grade underground uranium mine, located in the uranium-rich Athabasca Basin of northern Saskatchewan, Canada, at the south-west corner of Waterbury Lake. The deposit, discovered in 1981, is second in size of ...
,
Saskatchewan Saskatchewan ( ; ) is a Provinces and territories of Canada, province in Western Canada, western Canada, bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, to the northeast by Nunavut, and on t ...
, which has the largest undeveloped high-grade uranium ore deposits in the world. This created uncertainty about short-term future of the uranium supply. Other factors are speculation triggered by growing expectations around
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area, the List of countries and dependencies by population, second-most populous ...
and
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
's nuclear programs, and a reduction in available
weapons-grade uranium Weapons-grade nuclear material is any fissionable nuclear material that is pure enough to make a nuclear weapon or has properties that make it particularly suitable for nuclear weapons use. Plutonium and uranium in grades normally used in nucle ...
. The bubble coincided with renewed discussions regarding a renaissance of nuclear power.


Impact

The impact of the bubble on
nuclear power Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced b ...
generation was small, as most power plants have long-term uranium delivery contracts, and the price of natural uranium makes up only a small fraction of their operating cost. However, the sharp fall in prices after mid-2007 caused a lot of new companies focused on exploration and mining to lose their viability and go out of business. Due to increased prospecting, known and inferred reserves of uranium have increased by 15% between 2005 and 2007.


See also

* 2000s commodities boom *
Uranium Participation Corporation Uranium Participation Corporation (UPC) () is a Toronto-based holding company investing nearly all of its assets in uranium, both in the form of uranium oxide () or uranium hexafluoride (), with the primary investment objective of achieving ca ...


References

Commodity booms Economic bubbles Uranium politics {{Trade-stub