Australia's Uranium Mines: Why the World's Largest Reserves Matter

Australia holds the world’s biggest known recoverable uranium reserves — 1.68 million tonnes — yet nuclear power is banned domestically. Instead, the country exports this resource, with uranium accounting for 17% of national energy exports. Here’s what you need to know about Australia’s uranium mines in 2024.

The Supply Crunch That’s Coming

Uranium prices just hit a historic milestone: US$100 per pound in January 2024 for the first time in 17 years. Why? Because the world is facing a critical supply problem.

According to recent analysis, uranium supply is projected to fall short of demand by approximately 1.5 billion pounds by 2040. Global nuclear generation is expected to grow by over 22% through 2050 as countries shift toward net-zero emissions. But here’s the catch: uranium production is forecasted to remain flat through 2030, then drop nearly 50% from 2030-2040. That’s when things get interesting for miners.

“We’re looking at geopolitical disruptions, supply shortages, and rising production costs,” industry analysts note. “It’s becoming increasingly difficult to produce uranium cheaply.” This supply-demand mismatch could send prices significantly higher — which is exactly what the mining sector needs to expand operations and develop new deposits.

Australia’s Current Uranium Production: Three Key Operations

Australia produced 4,553 tonnes of uranium in 2022, representing about 8% of global output and ranking the country as the fourth largest producer worldwide. All three operating mines are concentrated in South Australia.

Olympic Dam: The Titan

BHP’s Olympic Dam isn’t just Australia’s largest uranium mine — it’s the world’s largest known uranium orebody. Operating since 1988 with both underground and surface operations, this integrated facility can extract, refine and process all ore types.

FY2024 performance: 3,603 tonnes of U3O8 produced, up from 3,406 tonnes the previous year. The mine operates reserves of 558 million tonnes grading 590 g/t uranium, with operations expected to continue until 2081.

While uranium is a significant product, Olympic Dam functions primarily as a copper mine that yields uranium, gold, and silver as byproducts.

Four Mile: The ISR Player

Operated by Quasar Resources (a General Atomics subsidiary), Four Mile came online in 2014 using in-situ recovery (ISR) technology. The mine produces an estimated 2,000 tonnes of U3O8 annually, with the most recent reported figure at 1,503 tonnes for 2022.

Ore from Four Mile undergoes processing at the adjacent Beverley ISR facility, owned by fellow General Atomics subsidiary Heathgate Resources. As a private operation, exact production transparency remains limited.

Honeymoon: The Restart Story

After sitting idle since 2013 due to technical issues and depressed uranium prices, Honeymoon roared back to life in 2024. Boss Energy restarted operations in April, producing its first drum of uranium using advanced lixiviant chemistry and ion-exchange technology.

The ramp-up is accelerating: Boss reported 28,844 pounds of U3O8 in Q4 FY2024, followed by 89,516 pounds in Q1 FY2025. Full-year FY2025 production guidance stands at 850,000 pounds, with the company on track to meet targets. In July, Boss completed its first uranium contract sale to European nuclear utilities.

The Future Pipeline: Three Major Undeveloped Deposits

Australia holds 28% of the world’s known uranium deposits (as of 2021) across 36 known sites. Three projects represent the largest development opportunities:

Mulga Rock (Western Australia, permitting stage): Owned by Deep Yellow, this 115-million-tonne polymetallic deposit (104.8 million pounds U3O8) also contains copper, nickel, cobalt, zinc and rare earths. Projected capacity: 3.5 million pounds annually over 15+ years. A revised feasibility study is expected by late 2025.

Yeelirrie (Western Australia, permitting on hold): Cameco’s 128.1-million-pound U3O8 project received federal mining approval in 2019, but Western Australia rescinded state approval in January 2022 after the company failed to commence substantial work. Reapplication is possible if regulatory requirements are met.

Samphire (South Australia, preliminary economic assessment): Alligator Energy’s ISR project targets 1.2 million pounds annualized production. A pilot recovery plant field trial began in October 2024, with a full feasibility study planned for 2025.

Why This Matters Right Now

The convergence of several factors creates a compelling scenario for uranium miners:

Price recovery: After hitting US$80+ per pound, analysts remain bullish on triple-digit uranium prices given supply constraints.

Energy transition tailwinds: Nuclear power is gaining acceptance globally as a clean energy solution, with generation expected to grow 22%+ through 2050.

Production gap: With supply tightening and demand accelerating, mining companies that can bring reserves into production before 2030 stand to benefit from sustained price support.

For traders and investors, Australia’s uranium mines in the coming years represent both established production (Olympic Dam’s consistent output) and explosive growth potential (Honeymoon’s restart, Mulga Rock’s development). The supply deficit won’t fill itself — and that’s where Australia’s resources come in.