The Kazakh crisis is only one threat hanging over the uranium market

KAZAKHSTANIS OFTENUC called the Saudi Arabia of uranium. In fact its market share, at more than 40% of the world’s nuclear fuel, is not far off the share in the oil market of the Organisation of the Petroleum Exporting Countries and Russia combined. So when unrest, followed by harsh repression, shook the country early this month, buyers of the metal shuddered. Spot uranium prices jumped by 8% on January 5th alone, to $45 per pound, according to x, a data provider. With protests now quashed, the market has settled. Nevertheless, the commodity, which is often dubbed “yellowcake”, seems set for a turbulent decade.The immediate impact of the Kazakh turmoil may be limited. Although the protests happened far away from uranium-producing regions, a small drop in global output is nevertheless likely. To extract uranium, Kazakhstan uses a method that involves pumping acid into the ground to dissolve the ore, recovering the solution and then using chemicals to separate out the metal. Disruptions to the shipping of compounds and equipment, because of stranded trains or communication problems, may have slowed operations.