The uranium bubble of 2007 was a period of nearly exponential growth in the price of natural uranium, starting in 2005[1] and peaking at roughly $300/kg (or ~$135/lb) in mid-2007.[2] This coincided with significant rises of stock price of uranium mining and exploration companies.[3] After mid-2007, the price began to fall again and at the end of 2010, was relatively stable at around $100/kg.[4]
The upward trend for the prices of uranium was already apparent since 2003. This prompted increases in mining activity. A possible direct cause for the bubble is the flooding of the Cigar Lake Mine, Saskatchewan, which has the largest undeveloped high-grade uranium ore deposits in the world. This created uncertainty about short-term future of the uranium supply.[3] Other factors are speculation triggered by growing expectations around India and China's nuclear programs, and a reduction in available weapons-grade uranium.[5] The bubble coincided with renewed discussions regarding a renaissance of nuclear power.
The impact of the bubble on nuclear power generation was small, as most power plants have long-term uranium delivery contracts,[6] and the price of natural uranium makes up only a small fraction of their operating cost. However, the sharp fall in prices after mid-2007 caused a lot of new companies focused on exploration and mining to lose their viability and go out of business.[3] Due to increased prospecting, known and inferred reserves of uranium have increased by 15% between 2005 and 2007.[7]