Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Happy holidays guys! Given the resurgence of Uranium, why do we not hear BHP mentioned more in the space with their Olympic Dam mine? Is it only because they're more positioned to Iron Ore currently or because it is under producing what it's capable of? At what spot price do you think they will really start to ramp up production and will this then have an inverse effect from the extra supply on the market? Cheers
Hi Aaron,
A very hot/ topical subject after uranium’s +50% surge over recent weeks – copper and uranium are MM’s two favourite commodities into 2024 although the latter has already rallied hard.
In Q4 of 2022 BHP chair Ken MacKenzie said “while uranium and nuclear energy need to be part of the discussion en route to net-zero, the company had no interest in uplifting its uranium capacity at this time.” BHP already is a producer of uranium but it’s a by-product of their copper production at Olympic Dam.
In similar fashion to why BHP hasn’t considered lithium production to-date its all about relative revenue for the “Big Australian” with uranium not moving the dial but never say never as we move toward a clean world.
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