Financial Post reported BHP Billiton Ltd. (NYSE:BHP,ASX:BHP) announced a widely-expected delay to the massive expansion of its Olympic Dam uranium mine in Australia.
As quoted in the market news:
The move was a response to softer commodity markets and soaring capital costs that are plaguing the industry.
This could have an outsized impact on the uranium market, which is small and concentrated. The Olympic Dam expansion was expected to quadruple uranium output from the mine to more than 40 million pounds beginning in 2017. To put that in perspective, uranium giant Cameco Corp. produced 22.4 million pounds last year.