WA companies are cautiously optimistic for the future of uranium mining in Australia, despite a recent estimated $1 billion Australian stock market decline between them.

The stock dropped quickly on August 2, after Kazakhstan-based Kazatomprom, the world’s largest uranium exporter, announced improvements to its 2024 production plan, expecting to generate more than 23 million tonnes of uranium annually.

This increase follows Kazatomprom’s production of more than 21,000 tonnes in 2023.

WA mining company Cauldron Energy’s chief executive Jonathan Fisher said this positivity caused a market scare, dropping prices across the board with Cauldron Energy’s stock falling by almost 50 per cent.

“The slight positive surprise in the 2024 Kazatomprom production spooked the market; in combination with US recession fears,” Mr Fisher said.

For the past 20 years Kazakhstan’s main production method for its projects has been in-situ recovery mining.

Australia currently has two in-situ recovery producers; BOSS Energy Ltd and General Atomics Australia Pty Ltd. .

ISR mining uses fluid to recover materials without needing to dig into the ground, causing very little disturbance to the environment.

Australian Nuclear Association secretary John Harries agreed the recent stock price drops did not reflect the bigger picture.

“For a long time the uranium price has been too low … because there’s been a surplus of uranium around the world,” he said.

Since 2021 the price of uranium has more than doubled from US$30 to US$80 (around A$45 to A$120) per pound as people transition to more renewable energy sources.

Nearly 60 nuclear power plants are under construction worldwide, with global upscaling prompting calls from the resource sector to reverse WA’s ban on uranium mining.

There are four exceptions to this ban and all were allowed to proceed because they were preparing for operations to start before the ban was approved by the WA Labor Party.

They are the Cameco Corp’s Kintyre project in the East Pilbara and Yeelirrie project 650km northeast of Perth, Vimy Resource Ltd’s Mulga Rock project in the WA Great Victoria Desert, and Toro Energy Ltd’s Wiluna project in central WA.

Western Australian Liberal leader Libby Mettam said she would overturn this ban if elected in 2025.

Producers hope this would allow for even more growth for the country with the introduction of new projects.

Dr Harries said digging for uranium was the same as any other mining operation, done in a safe, effective manner.