Chamwe Kaira
The demand for uranium is being driven by the existing reactor fleet, reactors under construction, and reactor life extensions, particularly in the US and other countries, according to Paladin Energy.
Significant growth in nuclear energy demand is expected from commitments made at COP28 and COP29. Thirty-one countries, including the US, Canada, the UK, and France, have pledged to triple nuclear power capacity by 2050.
Another contributing factor is US President Donald Trump’s executive orders to boost the nuclear energy sector in the US, aiming to quadruple the US nuclear fleet from 100 GW to 400 GW by 2050.
This plan implies an additional 150 million lbs of annual U₃O₈ demand for the US alone. The increasing demand is also linked to data centres and AI, which require more clean and reliable baseload power.
Paladin noted that the largest uranium-consuming countries, such as the US, China, and France, have limited domestic supplies. European utilities currently source about 50% of their uranium from Kazakhstan, Russia, and Niger. These utilities are now focusing more on diversifying their supply sources.
Chinese utilities have outpaced their Western counterparts in securing uranium contracts to support their domestic reactor build programmes. According to Paladin, global utilities have uncovered uranium requirements of one billion pounds by 2035 and are increasingly looking to secure supply from jurisdictions with a Western-facing approach.
The strong uranium market outlook is driven by growing nuclear energy demand, which is being fuelled by global energy security concerns and electrification.
Paladin’s Langer Heinrich Mine in the Erongo region plans to reach its full mining capacity by 2027. As of June 2025, 50% of the planned mining fleet capacity is operational, with the remaining fleet scheduled for delivery in late 2025 and expected to be commissioned in the second half of 2026. The transition from processing stockpiled medium-grade ore to primary mined ore will begin in 2026. The mine is expected to have a 17-year life, supported by 82.8 million pounds of uranium ore reserves.
The mine will operate with refurbished power infrastructure, ensuring a reliable power supply. NamWater is also upgrading its facilities and improving on-site water management strategies to secure long-term water supplies.
