Overview
Uranium is essential for nuclear energy and weapons. The U.S. imports ~95% of uranium, primarily from Canada and Kazakhstan. China controls 13% of global production.
Uranium is a dense, silvery-white metal with the chemical symbol U and atomic number 92. It is a naturally occurring element found in rocks, soil, and water, and it is best known for its role as the primary fuel for nuclear power plants. Uranium’s unique properties, including its ability to undergo nuclear fission—where the nucleus of an atom splits, releasing a significant amount of energy—make it a critical resource for generating electricity and powering nuclear reactors. In addition to its energy applications, uranium also has important uses in military technologies, including nuclear weapons and naval propulsion systems for submarines and aircraft carriers.
The global distribution of uranium reserves is concentrated in a few key countries. Australia holds the largest share, accounting for approximately 28% of the world’s known recoverable reserves, followed by Kazakhstan and Canada. Together, these three countries dominate global uranium production, with Kazakhstan being the largest producer, responsible for over 40% of the world’s supply. Other significant producers include Namibia, Niger, and Russia. The United States also has substantial uranium reserves, primarily in Wyoming and New Mexico, but domestic production has declined significantly in recent decades, leaving the country reliant on imports to meet its needs.
Uranium’s primary use is in the generation of nuclear energy. Nuclear power plants use enriched uranium, typically in the form of uranium dioxide pellets, as fuel to produce electricity through controlled nuclear fission reactions. This process provides a reliable, low-carbon source of energy, making nuclear power an important component of efforts to combat climate change. In addition to civilian energy production, uranium is essential for military applications. Highly enriched uranium is used in the production of nuclear weapons, while lower-enriched uranium powers naval reactors for submarines and aircraft carriers. The element is also used in research reactors and in the production of medical isotopes for cancer treatment and diagnostic imaging.
Kazakhstan’s dominance in uranium mining is largely due to its use of in situ recovery (ISR) technology, a cost-effective and environmentally less invasive method of extracting uranium from underground deposits. The country’s state-owned company, Kazatomprom, is the world’s largest uranium producer, supplying fuel to global markets. Canada, particularly through its high-grade uranium mines in Saskatchewan, also plays a crucial role in the global supply chain. However, the processing and enrichment of uranium are concentrated in a few countries, with Russia, the United States, France, and China leading in enrichment capacity. This concentration has raised geopolitical concerns, particularly in light of tensions between major powers.
For the United States, uranium is a critical mineral due to its importance in both energy security and national defense. Nuclear power provides about 20% of the country’s electricity and is its largest source of carbon-free energy. However, the U.S. currently imports over 90% of its uranium, primarily from Canada, Kazakhstan, and Australia, making it highly dependent on foreign sources. The U.S. government has been working to revitalize domestic uranium mining and processing capabilities, including the establishment of a strategic uranium reserve to reduce reliance on imports and ensure a stable supply for both civilian and military needs.
As the world transitions to cleaner energy sources, uranium’s role in the global economy is expected to grow. Nuclear power is increasingly recognized as a key component of strategies to reduce carbon emissions, particularly in countries seeking to replace coal and other fossil fuels. The development of advanced nuclear technologies, such as small modular reactors (SMRs) and next-generation reactors, could further increase demand for uranium. However, challenges such as public opposition to nuclear power, concerns about nuclear waste, and geopolitical tensions surrounding uranium supply chains must be addressed. Given its critical role in energy and security, uranium will continue to be a vital resource in the decades to come.
Uranium in Brazil
Brazil holds significant uranium reserves, ranking among the top 10 countries globally in identified resources. However, uranium mining in Brazil is subject to stringent government control, as uranium extraction, processing, and commercialization fall under state monopoly, as defined by the Brazilian Constitution. Indústrias Nucleares do Brasil (INB) is the state-owned company responsible for uranium mining and nuclear fuel production in the country.
The Federal Constitution establishes that “the exploration of nuclear services and facilities of any kind, as well as the state monopoly over the research, mining, enrichment, reprocessing, industrialization, and trade of nuclear ores and their derivatives,” is an exclusive competence of the Union. Furthermore, Law No. 14.514/2022 and Decree No. 51.726/1963 stipulate that the Union’s monopoly includes:
- Research and mining of nuclear ore deposits located within national territory;
- The trade of nuclear ores and their concentrates, nuclear elements and their compounds, fissile and fertile materials, artificial radioisotopes, radioactive substances from the three natural series, and nuclear by-products;
- The production and industrialization of nuclear materials.
Nuclear activities in Brazil are monitored by the National Nuclear Energy Commission (CNEN), and operations are conducted exclusively by INB, the sole company authorized to mine and process uranium in the country. Recently, Law No. 14.514/2022 allowed INB to provide services to national and international entities, both public and private, within Brazil or abroad, while maintaining the Union’s monopoly. Additionally, nuclear activities in Brazil require legislative approval and are permitted solely for peaceful purposes, as per international agreements ensuring responsible use of nuclear energy.
Anticipating potential legislative changes in Brazil in the coming years, we are strategically evaluating areas with uranium potential.