The US Department of Commerce has submitted its report and recommendations to US President Donald Trump’s office following its Section 232 investigation into foreign uranium.
Georgia Williams – First Published April 17th, 2019
As the world’s largest consumer of U3O8, America spends roughly US$2 billion annually on importing the energy fuel from around the globe. Despite a majority of imports coming from Canada and Australia, the quota target is aimed at directly curbing imports from non-hospitable regions and nations.
“Uranium imports, increasingly from state-owned enterprises in adversarial countries like Russia and its allies, created a stark national security crisis,” notes an announcement from Energy Fuels. “More than 60 percent of newly mined uranium around the world now comes from state-owned enterprises that unfriendly nations control.”
A low uranium spot price has also affected the sector, keeping new exploration muted and forcing some producers to halt production and purchase off of the spot market.
Energy Fuels addressed this in part, stating, “While uranium imports from our adversaries increase, production from our allies is plummeting. Uranium mining companies in other free market countries like Canada and Australia are also suffering because of state-subsidized production. Only one mine still operates today in Canada and production in Australia is declining.”
Uranium is used in the US to power roughly 20 percent of the country’s electricity and 60 percent of the clean, carbon-free
The US was once one of the largest producers of uranium with a vast majority being mined from the Colorado Plateau, near the Grand Canyon.
However, a 2012 decision by former President Barack Obama put a moratorium on new uranium mining claims in and around the Grand Canyon.
“The brimming global supply of uranium has kept prices low for years, restraining the kind of rampant plundering of public and tribal lands that this country experienced decades ago,” Reimondo added. “The public is still grappling with the consequences and paying the price of the last uranium boom.”
Trump will now have 90 days to review the report and hand down a decision.
To find out more about the investigation and its implications for the sector, watch the video below:
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels and IsoEnergy are clients of the Investing News Network. This article is not paid-for content.
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