Swann Global's Tom Magee takes an in-depth look at Uranium.

Currently the world’s 439 commercial nuclear power reactors produce 16% of the globe’s base load power requirements. In doing this they do not emit the 400 million tonnes of greenhouse gas that conventional generation methods would. Perhaps an even more stunning comparison is that the 10,139 tonnes of U3O8 exported by Australia last year had a greater energy value than the 115 million tonnes of thermal coal that country exported during the same period.

While still a contentious issue in some parts of the world, rhetoric is rapidly being overtaken by reality as nations grapple with the need to provide energy security to their people and economies. 36 new reactors are currently under construction, 93 are in the planning stage and a further 219 are proposed. In 2007 total global uranium production was 41,279 tonnes compared to the 2008 requirement of 64,615 tonnes. Little wonder the price of uranium has weathered the global financial crisis so well.

Australia and Canada are the two largest producers, followed by Kazakhstan. Africa offers the prospect of becoming a major player over time. Recent changes in the Australian regulatory environment and increased exploration effort will only serve to increase the dominance of a few select countries in this strongly expanding market.

As with all growth stories, the downside is the shortage of talented managers and technical specialists with the unique skill sets and experience needed to support and expand the world’s upstream uranium industry. In the decades since Three Mile Island and Chernobyl, the investment in the human capital needed to support the expansion of this critical industry has been neglected. The engineering and metallurgical skills required will be in short supply and those that are available will command a significant premium.

Swann Global has significant experience in assisting the industry in finding and engaging senior management and technical expertise in the industry. With offices in Australia and North America, an extensive industry data base, an extended network in the resources sector and consultants from a resources background we are uniquely placed to support the growth of this vibrant industry sector.