[DIPLOMACY] A quiet gathering of the world's Uranium producing Market Economies which aren't the USA

[u/peter_j_]

Greetings, friends.

PM McMahon and his Australian Liberal government have gathered us here to talk about Uranium. Specifically, we are met to discuss Uranium mined outside of both the Communist-Marxist bloc, and the USA. Most estimates have that as three roughly equal shares in terms of deposits, but we are by far the smallest of the three by extraction quantities. We are here as both Uranium producers and the very large mining firms extracting it internationally.

Invited:

• Canada
• France
• United Kingdom
• South Africa
• Japan

Overview

Two main forces are currently preventing Uranium Minng from being deeply profitable amongst us:

• The Communist bloc using non-market forces to supply Uranium, mainly from Kazakhstan, to nuclear plants in Communist countries. About this little, if anything, can be done.
• The USA banning the import of Uranium from other countries, and flooding the market with cheap Uranium, resulting in spot prices of around $6 per pound (1960s to present). The USA has also made plans for building its own reactors based on a pricing model counting on the price staying this low. They are betting at being able to buy our Uranium at low prices, amongst other things, as they cannot hope to meet market demand by themelves.

There is a third issue Australia would like you to consider, which is whether our Uranium is used in the production of nuclear weapons. Anyone buying our Uranium must abide by this requirement or not trade with us. We wish you to consider your own contribution to this discussion.

 

The Point

Australia believes that the market price of Uranium can comfortably rise from $6 per pound to almost an order of magnitude more than that ($30-60), creating great opportunities for profit for mines and mining firms. Global demand is high, and production is expensive.

We wish for you each to consider the following proposals:

1. We each commit to investing more in Uranium production and setting prices together, aiming to negate the flood of cheap American Uranium on the market, resulting in a hefty profit. The main way we'll do this is slow down distribution of the product by stockpiling it together, and releasing it to the market in ways that ensure its price stays high.
2. We emphasise this is private companies rather than States taking action, and do our best to remain quiet. This won't be popular with the Americans.
3. We come to an agreement about the scope of our intent. We can probably get the price up to $30-60 per pound if we work hard enough, but the effects will be obvious enough to raise suspicion. If we were to aim at more like $18-24, then it is more likely we will be successful.

Your contributions welcome at this early stage.

[u/peter_j_]

Japan - /u/sunstrideralar

South Africa - /u/themanisnonstop

France - /u/realsnaffle

[u/peter_j_ → u/peter_j_]

Canada - /u/caelemleaf

UK - /u/servalarean

[u/SunstriderAlar]

Japan is prepared to support this general proposal which sounds suspiciously like a cartel. We ask if Australia is prepared to open its significant Uranium reserves to extraction, and onshore refinement to facilitate foreign investment?

[u/peter_j_ → u/SunstriderAlar]

1. It probably is exactly a cartel. Or could be called one. [google Societe d'Etudes de Recherches d'Uranium]
2. Yes we are - if uranium mining is profitable enough, Australia is willing to consider a lot of uranium mining.

[u/SunstriderAlar → u/peter_j_]

1. We should expressly avoid cartelism as it is against OECD rules, and World Bank, and a bunch of other international financial institutions to which we are party.

2. Japan would like to enter into negotiations on this as part of other agreements Japan and Australia are considering.

[u/CaelemLeaf]

Mitchell Sharp is willing to undertake greater discussions with representatives on this idea, but on the advice of his counterpart in the Resources Ministry, Donald Stovel Macdonald is skeptical.

[u/realsnaffle]

We will gladly attend to support such a proposal.