As decarbonization stimulates the revival of nuclear power, the demand for uranium will show long-term growth, and uranium exploration companies are calling for Australia's state governments to lift the ban on uranium mining.

Australia has nearly one-third of the world's known uranium reserves, but only two of its eight states and territories – South Australia and the Northern Territory – allow uranium mining. Currently, there are only two operating projects, both in South Australia, and other states are reluctant to accept the industry for environmental and safety reasons.

Due to the expected increase in consumption of uranium as the primary raw material for nuclear power plants, the price of uranium has more than doubled in the past decade. At the end of last year, 22 major economies, including the United States, Japan and France, pledged to double their nuclear energy production by 2050.

Uranium will be the main topic of discussion at the annual mining and dealer conference, which opens in Kalgoorlie on Monday. The conference has attracted hundreds of resource executives and financiers to the small inland town in Western Australia, which banned uranium mining in 2017 but exempted four previously approved but unproduced projects.

Jonathan Fisher, CEO of uranium exploration company Cauldron Energy Ltd., listed in Sydney, said: "It is absurd that the states, including Western Australia, which have a history of mining, have introduced bans that could cause Australia to miss out on the surging global demand. It's time to lift these bans - there are real economic costs if we don't," he said in an interview before the conference.

The output of the two operating uranium mines in Australia - BHP Group Ltd's Olympic Dam project and Boss Energy Limited's Honeymoon project - accounts for about 9% of the world's disclosed production.

In Australia, mining approval is decided at the state level, but the federal government has yet to take steps to encourage the mining of nuclear fuel, despite its crucial role in driving Australia's energy transition to net zero emissions.

A spokesperson for Madeleine King, Australia's federal resources minister, said the country's uranium industry plays a vital role in achieving net zero emissions transition for global energy security and like-minded countries. This spokesperson said that any regulation or ban on future uranium mining would primarily be decided by the relevant state government.

However, the restart of the Honeymoon uranium mine has boosted hopes for more projects to be approved in the industry. It is reported that about 10 years ago, the mine was closed due to the decline in uranium prices. The price of uranium has fallen from a peak of around $106 per pound in early February, but it is still higher than $80.

John Borshoff, CEO of Deep Yellow Ltd., which is developing the Mulga Rock project in Western Australia, said that such price levels cannot sustain rapid exploration and mining of uranium, but the price may rise again. "One country after another has said that renewable energy cannot achieve their goals, and nuclear energy will become an important part of achieving net zero emissions."