As comparison, it took the state ten years to reach the same rate of growth prior to the pandemic. It has also moved from being the slowest growing economy to the fastest. While there have been a lot of factors contributing to this, including great wheat producing weather, increasing tourism and strong population growth, another driver is now emerging and this is demand for uranium.
Australia banned nuclear energy in 1998 due to safety concerns and hence does not use uranium as an energy source. However, globally, interest has been renewed, primarily because nuclear power does not produce carbon and using it will help with reaching Zero Carbon. But also because following the end of the pandemic, energy costs have accelerated and there are ongoing problems with dependency on Russian gas. This has led to uranium prices accelerating quickly.
Australia has the most uranium deposits in the world, accounting for 25 per cent of the global total but is the fourth largest producer in the world. There are three mines in Australia, all of them in South Australia. Last week, uranium’s spot price exceeded $140 a kilo, its highest since 2011. It is possible it could reach $200. The two largest global producers are sold out until 2027; some utilities are thought to be short for 2024.