Dual-listed Paladin Energy chairperson Cliff Lawrenson has warned that the global uranium market is entering a period of sustained supply tightness, driven by fast-rising nuclear demand and lengthy development timelines that make new production difficult to bring on line.

Addressing shareholders at the company’s AGM on Tuesday, he said the long-term imbalance between supply and demand was now “clear”, with new nuclear build commitments across multiple regions set to outpace the industry’s ability to deliver fresh uranium oxide units to market.

Lawrenson cautioned that the structural deficit would become more pronounced through the 2030s, a period in which utilities are expected to accelerate procurement to meet decarbonisation and energy security targets.

“The long-term imbalance between uranium supply and demand is now clear. The stated expansion of nuclear capacity in multiple nations will exacerbate this situation, particularly in the 2030s.”

According to Lawrenson, permitting, approvals and policy frameworks are a central bottleneck, with most new uranium supply taking more than a decade to progress from discovery to commercial production.

“We and many others in the industry believe that it now takes more than a decade to deliver a completely new source of uranium supply into the global market, largely as a result of rigorous approvals systems,” he said.

He also pointed to Australia’s restrictive public-policy settings as a constraint on new production despite the country’s significant endowment of uranium resources.

Paladin noted that more countries were turning to nuclear energy for decarbonisation and for long-term energy security. While European nations remain focused on transforming their energy mix, the US is increasingly prioritising nuclear security, while even Paladin’s host jurisdictions – Namibia and Saskatchewan – are exploring the potential for domestic nuclear energy.

PALADIN EYES DECADES-LONG PRODUCTION BASE
Paladin has positioned itself to benefit from the strengthening market fundamentals, delivering its highest quarterly production at the Langer Heinrich mine (LHM) since restarting operations – surpassing one-million pounds in the September quarter. The operation’s strong performance has helped cement Paladin as the world’s fourth-largest listed uranium producer.

The company’s production profile is set to expand further following its acquisition of Canada’s Fission Uranium, a move Lawrenson described as “transformational”. The Patterson Lake South project is now a core pillar of Paladin’s future supply pipeline, with the company aiming to bring the operation into production from 2031.

Paladin also concluded a A$400-million equity raising earlier in the year, providing funding for the continued ramp-up at LHM, development of its Canadian portfolio and ongoing exploration activities.

Lawrenson said the strengthened financial position, combined with new leadership appointments and growing Canadian presence, placed the company in a strong position to capitalise on tightening global supply dynamics.

“Uranium is essential to achieving reliable, low-emission energy,” Lawrenson said, adding that Paladin aims to supply material “from assets that can sustain high standards of environmental stewardship”.

Paul Hemburrow recently took over from long-term CEO Ian Purdy, while Dale Huffman was appointed president of Paladin Canada in October and Scott Barber as COO starting in January.