Published July 31, 2024
By Christine Reed
The Center for Energy Regulation and Policy Analysis (CERPA) in the School of Energy Resources (SER) released a new white paper exploring the uranium extraction process and the contributing factors of Wyoming uranium production.
Authored by Alex Gebben, an energy economist in the UW Center for Business and Economic Analysis, the paper is the third in a series of six white papers exploring and evaluating different aspects of developing an integrated nuclear industry in Wyoming.
The first two papers explored the feasibility of uranium enrichment and nuclear component manufacturing in Wyoming.
A once thriving extractive industry in Wyoming, uranium mining was hit by a dramatic drop in price and suffered through a bust cycle that has yet to fully recover.
However, with the onset of advanced reactor technology, Wyoming could once again see a resurgence in uranium mining to meet fuel demands. The white paper identifies supply-chain market structures that provide opportunities in Wyoming for uranium extraction, as well as an economic impact analysis for the uranium mining industry.
Based on the analysis, Gebben concludes that the Wyoming uranium mining industry is situated to expand in the coming years, and that no legal or financial support from the State is required to maintain this growth.
“This paper is a critical component in understanding the future of the nuclear industry in Wyoming which has a prolific history in uranium extraction,” says Gebben. “Markets for uranium have rapidly adjusted in the last year, creating new opportunities for Wyoming in situ recovery to flourish. It is an industry that is poised to play a major role in Wyoming’s economy.”
The paper offers a pragmatic approach to consider what the industry can achieve amidst fluctuating uranium prices as worldwide demand changes.
“While long run uranium prices are uncertain and growth could stagnate if demand for uranium decreases, having some knowledge about the big economic picture can help companies make informed decisions about the risks and benefits to restarting large uranium mining operations in the state,” adds Gebben.
“We are grateful for the great work that Alex has done in providing a comprehensive analysis of potential opportunities in Wyoming for the nuclear industry,” says CERPA Director Kara Fornstrom. “The first three papers in this series provide important analyses of opportunities and challenges associated with the integrated nuclear industry to inform policy and decision makers in the State. We are looking forward to completing the remaining three papers in the series to provide a full scope of the industry and its potential impacts for Wyoming.”
The next papers will evaluate other aspects of the nuclear supply chain, including nuclear produced electricity, direct heat applications, and spent fuel storage and recycling.
To download the paper, research brief, or other resources released by CERPA, visit the website www.uwyo.edu/cerpa.
