Uranium jumps as unrest hits world’s top supplier Kazakhstan

Bloomberg

Uranium prices jumped as Kazakhstan, the world’s largest producer of the radioactive metal, struggles to cope
with deadly protests that pose the biggest challenge to the country’s leadership in decades.
The Central Asian nation, a part of the former Soviet Union that produces more than 40% of the world’s uranium, has disrupted communications networks and restricted some travel in a bid to quell the unrest. The Kremlin said Russia and its allies in the Collective Security Treaty Organisation will send “peacekeeping forces” after Kazakh President Kassym-Jomart Tokayev appealed for assistance.
Uranium surged almost 8% to $45.25 a pound on Wednesday from $42, according to UxC data. The turmoil could lead to more reliance on suppliers outside Kazakhstan, resulting in a surge in shares of uranium companies in North America and Australia.
The nuclear fuel made a stunning comeback in September, with prices surging 24% for the best monthly performance since late 2008. Investors are betting nuclear power will enjoy a renaissance as governments turn away from fossil fuels.
While prices are rising on news of Kazakhstan’s unrest and potential supply disruptions, there isn’t an immediate uranium shortage or nuclear power plant shutdowns. Unlike facilities that run on oil or natural gas, nuclear power plants can continue operating if shipments are delayed as many have built up stockpiles over the last several years.
Still, shares of Kazatomprom, the top uranium miner in Kazakhstan, are down 10% over the last two days in London.