Argentina could return to uranium mining after 30 years, with ambitions to develop nuclear power

Argentina could start mining its own uranium again within just a few years. The country has three nuclear reactors, which meet just under a tenth of electricity demand, and ambitions to build additional units. The country’s last uranium mine closed in the late 1990s because it was not economically viable. Renewed mining need not meet only domestic needs: Argentina could export uranium elsewhere in South America or to the United States.

In the 20th century, Argentina mined uranium for several decades, reaching its peak around the turn of the 1970s and 1980s. Production then began to decline and had essentially ceased by the 1990s. The country’s last mine was closed in 1997, according to the World Nuclear Association, because of the poor economics of its operation. Argentina also had its own uranium enrichment facility, but it currently imports enriched uranium from the United States.

Uranium mining could resume in Argentina within just a few years. The most advanced project in this area is Blue Sky Uranium’s Ivana project. According to the company’s chief executive, the new mining project could make Argentina independent of uranium imports. The country currently imports around 750 thousand pounds of uranium from Kazakhstan.

"We will skip the preliminary study and go straight to a feasibility study, hopefully within a year, given our high level of confidence in this project," said Blue Sky Uranium chief executive Nikolaos Cacos, according to S&P Global.

Uranium could also be shipped to foreign markets

The new mine could produce up to 17 million pounds of uranium concentrate over its planned 11-year operating life. The country could therefore obtain an average of around 1.5 million pounds of uranium per year from this project alone. Vanadium is also expected to be mined there. In line with the government’s plans for its nuclear programme, announced last December, uranium from the Ivana project could also be exported to other South American countries or the United States.

"Argentina is a nuclear country. By law, the government will be required to buy all the uranium produced by the Ivana project," Cacos added.

Argentina currently operates three nuclear reactors with an installed capacity of 1755 MW and is also developing its own small modular reactor. Nuclear power accounts for around 8% of domestic electricity demand, although the government is targeting a share of up to 20% in the future.