Energy Fuels Inc (TSE:EFR) (NYSEMKT:UUUU) released a statement on Monday commending US President Donald Trump on his decision to commence a new review of the domestic nuclear fuel supply chain.
In a written memo, Trump said he did not agree with a US Department of Commerce investigation that found uranium imports could hurt US national security. However, he wrote the findings "raise significant concerns," and in light of this, was ordering a deeper review: "A fuller analysis of national security considerations with respect to the entire nuclear fuel supply chain is necessary at this time."
The US President declined to set quotas for US uranium production at this time.
The Section 232 probe was prompted by a petition filed by Energy Fuels and Ur-Energy Inc (TSE:URE) (NYSEAMERICAN:URG). In the petition, the firms proposed that the president implement two remedies, with an aim to preserve US national security and help the domestic uranium mining industry recover.
Headquartered in Colorado, Energy Fuels is a fully integrated producer of both uranium and vanadium, and owner of the only operational conventional uranium mining in the US. Ur-Energy is a uranium mining company, which operates the Lost Creek in-situ recovery uranium facility in south-central Wyoming.
CEO Mark Chalmers said in a statement that the uranium company “commends” President Trump for recognizing the crucial importance of nuclear energy, the importance of the entire nuclear fuel supply chain and the importance of the domestic uranium mining industry as a key component of that chain.
"In our Section 232 petition, we asked for relief specific to the uranium mining industry,” Chalmers said. “Not only did the President recognize the threat to national security and the need for relief for the uranium mining industry, he also acknowledged that the national security threat to the whole nuclear fuel cycle, not only uranium miners, must be studied and addressed, in order to revitalize the nuclear energy industry.”
Chalmers also said the company is confident that the president will support actions to provide US uranium miners with the relief they require in a plan that will revitalize the entire nuclear fuel cycle, nuclear power generation and ensures national security.
The Denver-based company also updated investors on a new land cleanup contract at a formerly operating uranium mine in New Mexico.
In June, Energy Fuels signed an agreement with the owner of the former mine, who is currently completing reclamation activities onsite. As per the agreement, the owner will deliver material to Energy Fuels’ White Mesa Mill to process and recover uranium and dispose the remaining tailings.
The contract comes with anticipated revenue of between US$700,000 and $3.5 million. Energy Fuels also retains the title to recovered uranium or other minerals, which is currently estimated to be around 10,000 to 70,000 pounds of uranium valued between US$250,000 to $1.75 million at current prices.
Delivery of the material began in late June.
READ: Energy Fuels welcomes US Department of Commerce report on uranium imports and awaits President Trump's response
According to CEO Chalmers, the agreement represents diverse revenue generating opportunities and a significant step in the company’s ability to deliver and recycle low-grade ore from previously operating uranium mines.
"We believe the contract we announced today will allow us to demonstrate our capabilities at the White Mesa Mill, hopefully opening the door for us to participate in future cleanups,” Chalmers said in a statement.
The company is also seeking to participate in EPA-led efforts to reclaim abandoned, Cold War era uranium mines on the Navajo Nation and on other federal land in the US.
“It is also exciting to me personally from a sustainability perspective, as I have had a long-time history working with indigenous people and similar issues around the world."
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