The dramatic fall in the spot price of uranium oxide during 1980 from $42 per pound to around $25 has been accompanied by a sharp cutback in uranium production, planned new mines, and exploration, which is of particular concern to geologists. Against this background in the United States, new mines in Australia, Canada, South Africa, and other foreign countries continue to come on stream. Despite lower prices for yellow cake, these mines remain economic for only one reason--they are mining ore that is 3 to 4 times the average grade of ore mined in the U.S.

In addition to this classic ore grade/price relation, the structure of the uranium industry is undergoing change to increasing captive production. For the independent miner and seller of uranium, the shrinking merchant market and shift in the economics of the world uranium industry calls for a reexamination of his role in the industry both in the U.S. and in the world.

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