World looks to Canada to fill potash, uranium void left by Ukraine
Buyers scrambling for supplies of potash and uranium are looking to Canada to fill gaps caused by the war in Ukraine.
The northern nation has been approached by those seeking potash and uranium, said Canada鈥檚 Natural Resources Minister Jonathan Wilkinson. The country is one of the world鈥檚 main sources of the two commodities and buyers are anxious to secure supplies after Russia鈥檚 invasion of Ukraine disrupted trade flows.
Potash, a commonly used fertilizer, and uranium have been swept up in the global commodities rally after Russia鈥檚 invasion of Ukraine. Russia is a major source of uranium and a low-cost high-volume global producer for all major fertilizers. Disruptions in the potash trade will mean higher costs for farmers across the globe and in turn, more food inflation.
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鈥淲e have been approached, as has Minister (Melanie) Joly of Global affairs鈥 by partners seeking potash, Wilkinson said Thursday in a press conference. 鈥淐ountries approached me about uranium.鈥
Russia produces about 35% of the world鈥檚 enriched uranium for reactors, about twice as much as the No. 2 provider, according to UxC LLC, a nuclear industry researcher.
North America鈥檚 largest miner is Canadian company Cameco Corp. The producer told Bloomberg earlier this month in an email that its production plans remain unchanged from what they announced in February, which was that they vowed to maintain supply discipline by limiting production at two of its key Canadian uranium operations.
But Cameco also said it鈥檚 in a 鈥渧ery strong position鈥 to offer power companies an alternative uranium source and conversion feedstock if sanctions affect Russian supply.
Commercial discussions are always ongoing, the company said in an email Thursday, declining to provide specifics.
(By Robert Tuttle, Jen Skerritt and Joe Deaux)
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