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Released June 26, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. uranium production sector has seen better days. According to the U.S. Energy Information Administration (EIA), since 1990, U.S. uranium concentrate production has averaged a bit more than 4 million pounds per year. However, in the first quarter of 2017, annual production totaled only 450,000 pounds. If production remains at this level for the entire year, it would be the lowest annual production since 1952. Industrial Info is tracking $24.17 billion in uranium mining and processing projects throughout the world, including $3.34 billion planned in the U.S. However, the U.S. figure includes a $1 billion uranium mill tails remediation project.
Part of the decline in U.S. uranium production is that U.S. nuclear plants increasingly purchase uranium from other global locations for use as a fuel. According to the EIA, "Over the period from 2012 to 2016, foreign-origin uranium made up nearly 90% of uranium purchases by owners and operators of U.S. civilian nuclear power reactors." Many uranium projects in the U.S. have been delayed, waiting for the market to pick up.
U.S. spot prices for uranium fell from $34 per pound in January 2016 to $18 per pound in November. The closure of many smaller and older nuclear plants in the U.S. as natural gas becomes the fuel of choice in many power plants will probably not help matters. According to Mark Chalmers, chief operating officer for Energy Fuels Resources Incorporated (Lakewood, Colorado), spot prices may need to reach $50 per pound or higher to make some of these projects feasible. For more information, see February 24, 2017, article - Will Trump's Focus on Energy Security Boost U.S. Uranium Mining?
There may be some hope for the future of U.S. uranium markets. In January, the world's leading uranium producer, Kazakhstan, announced that it would curb uranium by about 10% per year, equating to about a 3% global reduction, according to CNBC News.
Most of the planned U.S. uranium developments being tracked by Industrial Info are being developed in the Rocky Mountains region, particularly New Mexico, Arizona and Wyoming. In Arizona, Energy Fuels Resources is under way with the construction a uranium mine near Grand Canyon Village. The mine, which is planned for completion early next year, will replace a nearby depleted mine. The facility will produce approximately 1.63 million pounds of uranium per year. For more information, see Industrial Info's project report.
In New Mexico, Energy Fuels Resources is planning to construct a grassroot uranium mine near Grants, New Mexico. The mine would extract approximately 1,085 tons per day or ore for processing to extract 2.7 million pounds per year of uranium over a nine-year mine life. The project remains in the late planning stages, but could kick off in 2019 if feasibility studies go well and permitting is approved. The project would take about two years to construct. For more information, see Industrial Info's project report.
In light of the uranium market, a better opportunity may await in a restart/revamp project. EnCore Energy Corporation (Edmond, Oklahoma) is planning the location on the 14,582-acre site of a uranium mine that was constructed but never advanced due to the decline of the uranium price in 1980. The mine would be an underground room and pillar operation. Pending an uptick in the market, enCore, with Peake Land Services LLC (Alto, New Mexico), which is acting as a consultant on the project, will perform site drilling explorations to update resource estimation and the project scope, leading to feasibility studies. However, the project seems to depend on a turnaround in the U.S. uranium sector. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
Part of the decline in U.S. uranium production is that U.S. nuclear plants increasingly purchase uranium from other global locations for use as a fuel. According to the EIA, "Over the period from 2012 to 2016, foreign-origin uranium made up nearly 90% of uranium purchases by owners and operators of U.S. civilian nuclear power reactors." Many uranium projects in the U.S. have been delayed, waiting for the market to pick up.
U.S. spot prices for uranium fell from $34 per pound in January 2016 to $18 per pound in November. The closure of many smaller and older nuclear plants in the U.S. as natural gas becomes the fuel of choice in many power plants will probably not help matters. According to Mark Chalmers, chief operating officer for Energy Fuels Resources Incorporated (Lakewood, Colorado), spot prices may need to reach $50 per pound or higher to make some of these projects feasible. For more information, see February 24, 2017, article - Will Trump's Focus on Energy Security Boost U.S. Uranium Mining?
There may be some hope for the future of U.S. uranium markets. In January, the world's leading uranium producer, Kazakhstan, announced that it would curb uranium by about 10% per year, equating to about a 3% global reduction, according to CNBC News.
Most of the planned U.S. uranium developments being tracked by Industrial Info are being developed in the Rocky Mountains region, particularly New Mexico, Arizona and Wyoming. In Arizona, Energy Fuels Resources is under way with the construction a uranium mine near Grand Canyon Village. The mine, which is planned for completion early next year, will replace a nearby depleted mine. The facility will produce approximately 1.63 million pounds of uranium per year. For more information, see Industrial Info's project report.
In New Mexico, Energy Fuels Resources is planning to construct a grassroot uranium mine near Grants, New Mexico. The mine would extract approximately 1,085 tons per day or ore for processing to extract 2.7 million pounds per year of uranium over a nine-year mine life. The project remains in the late planning stages, but could kick off in 2019 if feasibility studies go well and permitting is approved. The project would take about two years to construct. For more information, see Industrial Info's project report.
In light of the uranium market, a better opportunity may await in a restart/revamp project. EnCore Energy Corporation (Edmond, Oklahoma) is planning the location on the 14,582-acre site of a uranium mine that was constructed but never advanced due to the decline of the uranium price in 1980. The mine would be an underground room and pillar operation. Pending an uptick in the market, enCore, with Peake Land Services LLC (Alto, New Mexico), which is acting as a consultant on the project, will perform site drilling explorations to update resource estimation and the project scope, leading to feasibility studies. However, the project seems to depend on a turnaround in the U.S. uranium sector. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
