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supplemental emergency equipment to any nuclear energy facility in the United States within 24 hours. Tese additional measures are expected to bolster the security of nuclear power generation plants in the US, and NRC’s State-of-the-Art Reac- tor Consequence Analyses report, released in February 2012, determined that the public would be effectively protected in similar situation. While the Fukushima Daiichi incident illuminated the


downsides to nuclear power generation, uranium miners in the US are expected to perform strongly over the five years to 2019. Nuclear power plants, the consumers of uranium, purchase uranium through long-term contracts and only rarely on the spot market. Due to these long-term purchas- ing contracts, the producers’ stockpiles fulfill most purchases rather than recently mined uranium, which helps producers and consumers line up long-term plans. Additionally, the government sold off stockpiles of uranium in the 1990s and early 2000s, which depressed the price of uranium. As govern- ment stockpiles exit the market, the world price of uranium is expected to increase. IBISWorld forecasts the world price of uranium to increase


at an annualized rate of 12.5% in the five years to 2019. Tis expected increase in the world price of uranium is anticipated to bolster uranium-mining operations in the next five years. Consequently, machinery for these miners is expected to be in high demand as well. Uranium mining operations typi- cally rely on either underground mines or in-situ recovery techniques, and production has been increasing over the past five years. Te EIA projects that total uranium production in 2013 reached its highest level since 1997 (latest data available). Furthermore, uranium production in 2013 is expected to be 20.5% higher than production in 2011. If uranium miners were negatively impacted by the Fukushima Daiichi nuclear disaster, it is unlikely that production would have increased at such a high rate. Nonetheless, health concerns for employees


working at these sites are expected to persist. As a result, min- ing machinery manufacturers are expected to continue offer- ing solutions to minimize both costs and worker exposure to hazardous gases released in the mining process. For a more detailed look at the state of nuclear power plant


use and construction in the US, please turn to “Rays of Hope, Clouds of Doubt” on page 17.


Future Impact IBISWorld projects that the Mining, Oil & Gas Machin-


ery Manufacturing industry is poised for a period of strong demand and performance. Downstream extraction sectors are expected to sustain high levels of demand, and improv- ing technology will bolster industry performance over the five years to 2019. Furthermore, strong market conditions are expected to encourage entry into the market, with the number of industry operators increasing at an annualized rate of 0.8% from 2014 to 2019. As demand for energy products continues to recover from


the recession’s negative impact, IBISWorld expects the world price of natural gas to increase. Tis projected increase will boost purchasing costs for utilities companies, and IBISWorld expects alternative sources of energy, such as nuclear power, to benefit from this trend. As such, uranium mining operations will continue to perform strongly, thus improving demand for high value-added machinery and equipment. Additionally, coal is expected to continue maintaining high levels of energy efficiency, which will also likely benefit mining machinery manufacturers.


James Crompton holds a degree in Economics and International Relations from Boston University. A native of Baltimore, he previously worked in Shanghai, China, researching offshore financial centers. Crompton covers the oil & gas, mining, 3D printing and entertainment industries for IBISWorld.


Energy Manufacturing 2014 15


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