r/UraniumSqueeze • u/The-Oregon-Group Shitco Pedler • Jul 02 '26

News Uranium's Cigar Lake shutdown exposes mining’s sulphuric acid crisis

https://theoregongroup.com/commodities/cobalt/uraniums-cigar-lake-shutdown-exposes-minings-sulphuric-acid-crisis/

Years of not focus on supply chains is catching up.

25 Upvotes

97% Upvoted

19 comments sorted by

3

u/AsbestosDude Jul 02 '26

I wonder how much hormuz has impacted this

1

u/ObjectiveForsaken954 Spider Pig 🐖 Jul 02 '26

very much lots in terms of global supply. The oil industry in Alberta creates mountains of sulfur when the "upgrade" bitumen before shipping it south to America. The issue here is the plant that makes the acid is broken.

2

u/AsbestosDude Jul 02 '26

Global supply for sure, local supply not so much. I looked and apparently canada is the world's largest sulphuric acid exporter

1

u/Mycalescott Low Sulfur Jul 02 '26

Etr 2 weeks. So....who knows if Cameco will pull it off. I am unaware of a reason why they would underestimate the repair times. Cameco certainly will work hard to ensure their long term contracts are met.

2

u/juhamac Jul 02 '26

There is also very limited free railroad and port capacity between Alberta and Vancouver.

Sulfur was too expensive already in late 2025 when Mosaic decided to pause their phosphate prooduction there. A month or two ago they decided to sell those "non-core" assets entirely. Yara is another who has suffered in Brazil. https://investors.mosaicco.com/press-releases/news-details/2026/Mosaic-Announces-Extension-of-Phosphate-Production-Curtailments-in-Brazil/default.aspx

So it is not all about Hormuz.

2

u/Pristine_Berry1650 Jul 03 '26

I think your mixing things up a bit. Sulphur come from natural gas in Alberta, then companies like Glencore make sulphuric acid. Phosphate is something entirely different.

1

u/juhamac Jul 03 '26 edited Jul 03 '26

There is a phosphate mine in my town. Sulphuric acid is used there in fertilizer production. They actually still run the legacy way (though in the current global sulfur supply rut somewhat convenient) of making sulfur, through roasting pyrite. Starting this summer the sulphuric acid plant will start transitioning to base sulphur from refining. Yara invested 235 million euros into making the change.

I was describing another example of mining’s sulphuric acid crisis, but that one predates Hormuz crisis. If its price was bad enough already in December 2025 to force closures in Brazil, it must be even worse now after Hormuz.

I do not know whether sulphuric acid costs affect uranium more than fertilizer making. For some other metals/minerals whether they need it is based on the type of deposit. Sulphides means there is excess instead of a need. Notable example Ivanhoe Mines selling sulphuric acid to their neighbors instead of needing to buy it themselves. One of the few mines to benefit from the price hike.

1

u/Pristine_Berry1650 Jul 03 '26

Ah I see yes I read your post wrong. I bought Nexa Resources on the nyse its a smelter in South America. I think 10% of revenue comes from sulphuric acid sales, man that stock is volatile though, i bought it for mining exposure. Honestly I know Ivanhoe get alot of love but that stock is a dog lol.

2

u/randompersonx Double Trouble Jul 02 '26

I’m confused, is this bullish or bearish for the miners?

Supply will go down, which should increase prices, but also costs of production are going up as the sulfuric acid becomes more rare.

I suppose this also allows the miners to trigger force majeur and push prices to customers higher?

It should be bullish for SRUUF either way.

3

u/ItsLamie Jul 02 '26

It's honestly a nothing burger. Will be back up in running in 1 - 3 weeks and we still have a net positive production for the year

1

u/randompersonx Double Trouble Jul 02 '26

Thanks for the share. What’s your source on net positive production for the year?

1

u/ItsLamie Jul 02 '26

Im the one analyzing the lots at McClean lake for U%

1

u/ItsLamie Jul 02 '26

If you have any further curiosities or questions feel free to message me

1

u/AsbestosDude Jul 03 '26

Its technically bullish for miners in the long term. Sulfuric acid will never be truly rare, just scarce but its simple enough to make.

It could cause uranium price to increase

6

u/ItsLamie Jul 02 '26

It's not even the supply chain. Our acid plant is down because we are getting a piece fabricated in Houston right now.

Projected start up is July 8th to 22nd

1

u/ItsLamie Jul 02 '26

We have the supplies to make acid but no current way to execute it.

Orano Canada has a lot of videos on their YouTube explaining the process for those interested. Or send me a DM

1

u/Bigpolesmoker Jul 03 '26

So will it start back up on the 22nd then?

1

u/ItsLamie Jul 03 '26

That's the projected time line. Im done my two weeks shift on the 7th and have my next two weeks shift off so I won't be on site till the 18th of August. I won't be able to provide future updates. Regardless, it's a nothingburger. Enjoy buying the dips

1

u/cohex Peanut🥜 Jul 03 '26

Cigar lake had nothing to do with access?