The uranium mining industry is experiencing a notable resurgence. Prices for nuclear fuel soar, prompting the revival of once-forgotten mines.

As governments increasingly reconsider nuclear energy as a solution to growing climate change concerns, the prices have surged, creating opportunities for previously unprofitable mines to fill a growing supply gap.

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Furthermore, Denison Mines (AMEX:DNN) has restarted uranium mining operations at its McClean Lake joint venture with Orano Canada Inc.

The Canadian market has also seen a heightened capex activity and a surge in mergers and acquisitions:

Meanwhile, at least five U.S. producers are restarting operations in states such as Wyoming, Texas, Arizona, and Utah. Production had previously thrived until the aftermath of the 2011 Fukushima nuclear disaster in Japan.

The U.S. resurgence is also politically motivated, as heightened geopolitical uncertainty creates issues securing uranium shipments from Kazakhstan. This former Soviet state is the largest global uranium producer, and it typically exports commodities through Russian ports.

If the U.S. continues on the planned uranium consumption trajectory, the Uranium Producers of America forecasts a need for eight to 10 new mines.

American uranium production bottomed in 2019 at an all-time low of 174,000 pounds. That’s in stark contrast from the peak of 44 million pounds in 1980.

Retail investors in Uranium will keep Sprott Physical Uranium Trust (OTC:SRUUF) on their watchlist as this Toronto-based holding company invests nearly all of its assets in uranium.

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