Released July 19, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Commerce launched an investigation on Wednesday into uranium imports, citing their potential impact on national security. The results of the probe could provide relief to domestic producers, whose share of the U.S. market has dwindled in recent years.
"Our production of uranium necessary for military and electric power has dropped from 49% of our consumption to 5%," said Secretary of Commerce Wilbur Ross, in announcing the probe. "The Department of Commerce's Bureau of Industry and Security will conduct a thorough, fair and transparent review to determine whether uranium imports threaten to impair national security."
Industrial Info is tracking more than $2.6 billion in uranium mining project activity in the U.S., but more than half of that amount is tied to projects that are assessed as having a low probability of moving forward as planned, amid poor market conditions. According to the Department of Commerce, three U.S. companies with uranium mining operations have been idled in recent years.
Click on the image at right for a graph showing the number and value of U.S. uranium mining projects being tracked by Industrial Info.
The Department of Commerce listed several considerations that prompted the investigation, noting that uranium powers 99 U.S. commercial nuclear reactors that produce 20% of the electricity for the U.S. grid. Also,uranium is a key component in the U.S. nuclear arsenal, and powers the Navy's nuclear fleet.
The investigation follows a petition filed on January 16 by two Denver, Colorado-based companies, Ur-Energy, Incorporated and Energy Fuels Incorporated, which account for more than half of all uranium mined in the U.S. Production of uranium in the U.S. fell to near historic lows in 2017, due, in large part, to uranium and nuclear fuel imported from state-subsidized foreign entities, the companies said in a press release, adding that 2018 domestic production is likely to be even lower.
According to the U.S. Energy Information Administration (EIA), U.S. production of uranium concentrate in the first quarter of 2018 was 226,780 pounds, down 64% from the fourth quarter of 2017 and down 50% from the first quarter of 2017. During the first quarter of 2018, uranium was produced at seven U.S. uranium facilities, the same number as in the fourth quarter of 2017.
Click on the image at right for a graph showing U.S. uranium production since 1996.
Ur-Energy and Energy Fuels said that in 2017, imports of uranium from state-owned and state-subsidized enterprises in Russia, Kazakhstan and Uzbekistan fulfilled about one-third of U.S. demand. "If Russia and its allies take control of this critical fuel, the threat to U.S. national and energy security would be incalculable," the companies said in a joint statement.
However, Canada was the top exporter of uranium to the U.S. in 2017, followed by Australia, according to the EIA. Nearly 33% of the 43,033 pounds of uranium purchased in the U.S. last year came from Canada, and nearly 19% came from Australia. Industrial Info is tracking nearly $5.5 billion in uranium mining projects in Canada, and nearly $1.7 billion in Australia.
Ur-Energy and Energy Fuels proposed their own remedies to the situation: a quota that limits imports of uranium into the U.S. and reserves 25% of the U.S. market for domestic uranium, and a requirement for U.S. federal utilities and agencies to buy U.S. uranium. The Commerce Department has 270 days to conduct the investigation and submit a report to President Donald Trump, who then has up to 90 days to act on the report's recommendations.
Industrial Info is tracking more than $352 million in uranium project activity by Ur-Energy and Energy Fuels. All the projects are still in the planning stages.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
"Our production of uranium necessary for military and electric power has dropped from 49% of our consumption to 5%," said Secretary of Commerce Wilbur Ross, in announcing the probe. "The Department of Commerce's Bureau of Industry and Security will conduct a thorough, fair and transparent review to determine whether uranium imports threaten to impair national security."
Industrial Info is tracking more than $2.6 billion in uranium mining project activity in the U.S., but more than half of that amount is tied to projects that are assessed as having a low probability of moving forward as planned, amid poor market conditions. According to the Department of Commerce, three U.S. companies with uranium mining operations have been idled in recent years.
The Department of Commerce listed several considerations that prompted the investigation, noting that uranium powers 99 U.S. commercial nuclear reactors that produce 20% of the electricity for the U.S. grid. Also,uranium is a key component in the U.S. nuclear arsenal, and powers the Navy's nuclear fleet.
The investigation follows a petition filed on January 16 by two Denver, Colorado-based companies, Ur-Energy, Incorporated and Energy Fuels Incorporated, which account for more than half of all uranium mined in the U.S. Production of uranium in the U.S. fell to near historic lows in 2017, due, in large part, to uranium and nuclear fuel imported from state-subsidized foreign entities, the companies said in a press release, adding that 2018 domestic production is likely to be even lower.
According to the U.S. Energy Information Administration (EIA), U.S. production of uranium concentrate in the first quarter of 2018 was 226,780 pounds, down 64% from the fourth quarter of 2017 and down 50% from the first quarter of 2017. During the first quarter of 2018, uranium was produced at seven U.S. uranium facilities, the same number as in the fourth quarter of 2017.
Ur-Energy and Energy Fuels said that in 2017, imports of uranium from state-owned and state-subsidized enterprises in Russia, Kazakhstan and Uzbekistan fulfilled about one-third of U.S. demand. "If Russia and its allies take control of this critical fuel, the threat to U.S. national and energy security would be incalculable," the companies said in a joint statement.
However, Canada was the top exporter of uranium to the U.S. in 2017, followed by Australia, according to the EIA. Nearly 33% of the 43,033 pounds of uranium purchased in the U.S. last year came from Canada, and nearly 19% came from Australia. Industrial Info is tracking nearly $5.5 billion in uranium mining projects in Canada, and nearly $1.7 billion in Australia.
Ur-Energy and Energy Fuels proposed their own remedies to the situation: a quota that limits imports of uranium into the U.S. and reserves 25% of the U.S. market for domestic uranium, and a requirement for U.S. federal utilities and agencies to buy U.S. uranium. The Commerce Department has 270 days to conduct the investigation and submit a report to President Donald Trump, who then has up to 90 days to act on the report's recommendations.
Industrial Info is tracking more than $352 million in uranium project activity by Ur-Energy and Energy Fuels. All the projects are still in the planning stages.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
