US$1 BILLION IN POTENTIAL REVENUE
Worldwide, more than 100 Mt/a of phosphate rock is processed into phosphoric acid as an intermediate step in the manufacture of phosphate based fertilizer products. It is estimated that the phosphoric acid produced contains in excess of 20 Mlb/a of recoverable uranium, equivalent to over US$1 billion in potential revenue. This uranium is currently not recovered and therefore comprises a significant unexploited resource.
The worldwide production potential of uranium from phosphate operations is estimated to be in excess of 20 Mlb U3O8/a. This quantity of uranium is mined with the phosphate rock but not recovered during phosphate processing. The major phosphate based fertilizer producers are located in northern Africa, North America and Asia (Figure 1).
Figure 1 – Worldwide Phosphate Processing
Historically, uranium production from phosphoric acid peaked at over 5 Mlb U3O8 per annum during 1978 – 1983. Worldwide uranium production from phosphoric acid ceased in the late 1990s as a consequence of high operating costs and falling (low) uranium prices.
The operating cost of the historic process if revived in today’s economic climate is estimated to be US$50-70/lb U3O8 which is above current spot prices and at the levels of long term industry uranium price forecasts.
Operating cost estimates based on the pilot plant operation results indicate that, with contingency1 , the PhosEnergy Process is capable of producing uranium at operating costs in the order of US$20-$25/lb U3O8 with greater than 90% uranium recovery.
1 Operating cost contingency of 40% has been used. Cost estimates were for production in central Florida, USA.