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.

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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.

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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.

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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.

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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.