Although few scientists have estimated the exact cost of uranium mining since the late 70’s, the rise of nuclear energy calls into question the availability and rising cost of uranium ore. Is uranium extraction and refinement sustainable or profitable in terms of the Nuclear Fuel Cycle? The table below breaks down the economic burden of the extraction process into the costs of uranium ore, conversion, enrichment, and fabrication; indicating the overall cost of uranium in 2006 to be $2149 USD for i kg of uranium as enriched reactor fuel.
More importantly remains an analysis of the cost of uranium given its availability in nature. According to an article, Nuclear Eclectic Energy, by David Rose, the resources available at a price of $10 per pound (~0.45 kg) would, if used in Light Water Reactors (LWR’s), generate 6,000,000 megawatt-years of electricity, a total electric supply of 30 years are current usage rates, though not sustainable for the expected rates heading into the twenty-first century. Given the comparative advantage of uranium ore compared to current oil and gas or coal prices, however, uranium would have to reach $100 per pound before upsetting the cost advantage, a price at which significant amounts of uranium ore would be available for refinement. Nevertheless, even at generation rates ten times greater than current levels, there are sufficient resources for many centuries of energy production, and technology developments would greatly extend these periods (Price and Blaise, 2002).
Conclusively, the economic costs of uranium ore render nuclear energy an effective solution to the energy crisis. Current uranium stores, though limited, indicate a cost-effective process compared to oil and gas and coal. Although uranium prices are expected to increase as availability and quality of uranium stores decrease, the breaking point for a cost-effective analysis is well within the means of the uranium extraction process.
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