LAKEWOOD, CO, July 15, 2019 /PRNewswire/ - Energy Fuels Inc.
(NYSE American: UUUU; TSX: EFR) ("Energy Fuels" or the
"Company"), the largest uranium producer in the U.S., is
pleased to announce that our petition, filed jointly with Ur-Energy
Inc. under Section 232 of the Trade Expansion Act of 1962, has been
very successful. It has demonstrated the national security risks to
the U.S. from increasingly relying on imported uranium,
particularly from countries that are strategic competitors, and
that action needs to be taken. We are very pleased to have gained
the attention and action of the Administration to address the
energy and national security issues raised in the petition and
Department of Commerce investigation, and with the President's
response.
In his July 12th
memorandum, titled "Memorandum on the Effect of Uranium Imports on
the National Security and Establishment of the United States
Nuclear Fuel Working Group," President Trump not only acknowledged
he has "significant concerns regarding the impact of uranium
imports on the national security with respect to domestic mining,"
but went further and concluded that "a fuller analysis of national
security considerations with respect to the entire nuclear fuel
supply chain is necessary at this time." Rather than implementing a
remedy aimed only at the domestic uranium mining industry, as we
proposed in our petition, he established the United States Nuclear
Fuel Working Group to study U.S. nuclear fuel production, including
uranium mining, during the next 90 days, in order "to develop
recommendations for reviving and expanding domestic nuclear fuel
production" and to "reinvigorate the entire nuclear fuel supply
chain, consistent with United
States national security and nonproliferation goals." We are
looking forward to working with the Administration's U.S. Nuclear
Fuel Working Group to ensure the United
States will have a viable uranium mining industry that can
fulfill national security needs now and into the future.
In his July 12th
memorandum, President Trump noted that "the United States uranium mining industry
faces significant challenges in producing uranium domestically
and that this is an issue of national security" (emphasis
added). President Trump also stated that "on June 29, 2017, I announced an initiative to
revive and expand the nuclear energy sector and directed a complete
review of United States nuclear
energy policy to help find new ways to revitalize this crucial
energy resource. Nuclear fuel production is critical to a
vibrant nuclear energy sector" (emphasis added).
Mark S. Chalmers, President and
CEO of Energy Fuels stated: "In our Section 232 Petition, we asked
for relief specific to the uranium mining industry. 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. We commend
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. We are confident in our belief that the
President will support actions to provide U.S. uranium miners with
the relief they require in a plan that will revitalize the entire
nuclear fuel cycle, nuclear power generation and that ensures
national security. We are excited to stand ready to assist in any
way we can in seeing the President's plans brought to fruition.
Energy Fuels has more uranium production capacity than any other
U.S. producer, and is uniquely positioned to play a significant
role in any such plans. Energy Fuels owns and operates some of the
lowest cost in situ recovery ("ISR") and conventional
uranium mines in the U.S. The Company also owns the White
Mesa Mill in Utah, which remains a
key part of America's critical infrastructure, as it is the only
facility in the U.S. capable of performing a number of unique
functions. The White Mesa Mill is:
- The only conventional uranium mill in the U.S. that is licensed
and operating;
- The largest uranium producing facility in the U.S., with a
licensed capacity to produce over 8 million pounds of uranium per
year;
- The only conventional vanadium mill in the U.S. Vanadium is
another mineral, which along with uranium, is on the
Administration's list of minerals deemed critical to U.S. national
security;
- The only facility in the U.S. licensed to recycle
uranium-bearing alternate feed materials for the recovery of
uranium that would otherwise be lost to direct disposal;
- Important to North America's
uranium conversion facilities, having processed and recycled
millions of pounds of uranium generated from waste streams from the
uranium conversion process; and
- Well-placed to play an important role in the cleanup of Cold
War era abandoned uranium mines on the Navajo Nation and other
lands in the Four Corners Region of the U.S.
The Company also owns two fully-licensed and constructed ISR
uranium facilities in the U.S, with a combined capacity of 3.5
million pounds of uranium per year. The Nichols Ranch ISR Facility
in Wyoming is currently producing
uranium at reduced levels, but has a licensed capacity to produce 2
million pounds of uranium per year. The Alta Mesa ISR Facility in
Texas is currently on standby, but
is fully licensed and ready to quickly resume uranium production
once higher uranium prices can be realized. Alta Mesa has an operating capacity to produce
1.5 million pounds of uranium per year, and it produced nearly 5
million pounds between 2005 and 2012.
Energy Fuels has also earned a reputation as a reliable,
long-term domestic uranium supplier, due to its track record of
uranium deliveries to utilities and other customers over the
years.
Mr. Chalmers continued: "We are very encouraged by President
Trump's recognition that the domestic uranium mining sector faces
challenges from foreign state-owned entities that are creating
energy and national security problems for the United States. We are confident his
administration will act boldly to support domestic uranium mining
after the recommendations of the new U.S. Nuclear Fuel Working
Group are released in 90 days. For that reason alone, we believe
the Section 232 process we initiated for uranium was very
successful, as we have now made the highest levels of the
Administration and the U.S. Congress aware of the close
relationship between uranium mining and U.S. national security. As
the largest U.S. uranium producer, with three fully licensed
production facilities and a total licensed production capacity of
11.5 million lbs. of U3O8 per year, including
the only permitted and operating conventional uranium mill in the
U.S., we believe we will be able to play a key role in any plan "to
reinvigorate the entire nuclear fuel supply chain, consistent with
United States national security
and nonproliferation goals."
New Land Cleanup Contract:
On June 10, 2019, the Company,
through its wholly owned subsidiaries EFR White Mesa LLC and Energy
Fuels Resources (USA) Inc.,
entered into a Processing Agreement (the "Agreement") with
the owner of a formerly operating uranium mine in New Mexico. The owner is currently completing
various cleanup and reclamation activities at the mine, including
the removal and disposal of low-grade uranium ore located at the
site. Under the Agreement, the owner will deliver material to
Energy Fuels' White Mesa Mill for the processing and recovery of
uranium, and the disposal of the resulting tailings. Revenues
payable to the Company are expected to be between $700,000 and approximately $3,500,000, depending on the amount of material
delivered to the White Mesa Mill. As additional consideration, the
Company will retain title to any uranium (or other minerals)
recovered from the material, currently estimated to be
approximately 10,000-70,000 pounds of U3O8,
valued at approximately $250,000-$1,750,000
at current uranium prices. Deliveries of this material began in
late-June 2019. Energy Fuels has
proposed similar processing and disposal services to assist in the
cleanup of Cold War era abandoned uranium mines on the Navajo
Nation and other nearby lands. The Agreement represents the first
agreement for the processing and disposal of those types of
clean-up materials at the White Mesa Mill.
Mr. Chalmers concluded: "We are pleased to be able to announce
this new land cleanup contract for two reasons. First, it
demonstrates the diverse revenue generating opportunities we have
at Energy Fuels. Even during times of low uranium prices, we have
shown that we have the ability to bring cash in the door to help
support our operations. Second, and perhaps more importantly, this
is the first contract we have signed for the delivery and recycling
of low-grade ore sourced from the cleanup of formerly operating
uranium mines in the Four Corners Region of the U.S. It is well
known that we are seeking to participate in EPA-led efforts to
reclaim abandoned, Cold War era uranium mines on the Navajo Nation
and on other federal land. 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. 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."
About Energy Fuels: Energy Fuels is a leading
US-based uranium mining company, supplying
U3O8 to major nuclear utilities. The Company
also produces vanadium from certain of its projects, as market
conditions warrant. Its corporate offices are near Denver, Colorado, and all of its assets and
employees are in the United
States. Energy Fuels holds three of America's key uranium
production centers, the White Mesa Mill in Utah, the Nichols Ranch ISR Project in
Wyoming, and the Alta Mesa ISR
Project in Texas. The White Mesa
Mill is the only conventional uranium mill operating in the U.S.
today, has a licensed capacity of over 8 million pounds of
U3O8 per year, and has the ability to produce
vanadium when market conditions warrant. The Nichols Ranch ISR
Project is in operation and has a licensed capacity of 2 million
pounds of U3O8 per year. The Alta Mesa ISR
Project is currently on standby. In addition to the above
production facilities, Energy Fuels also has one of the largest NI
43-101 compliant uranium resource portfolios in the U.S., and
several uranium and uranium/vanadium mining projects on standby and
in various stages of permitting and development. The primary
trading market for Energy Fuels' common shares is the NYSE American
under the trading symbol "UUUU", and the Company's common shares
are also listed on the Toronto Stock Exchange under the trading
symbol "EFR." Energy Fuels' website is www.energyfuels.com.
Cautionary Note Regarding Forward-Looking
Statements: This news release contains certain
"Forward Looking Information" and "Forward Looking Statements"
within the meaning of applicable United
States and Canadian securities legislation, which may
include, but is not limited to, statements with respect to:
any expectation as to what the recommendations of the working
group may be; any expectation as to how the recommendations may be
implemented and the timing of implementation; any expectation that
the recommendations may support the U.S. uranium mining industry;
any expectation as to Energy Fuels' ability to participate in the
process; any expectation that Energy Fuels is uniquely
positioned to play a significant role in any recommended plan; any
expectation as to future vanadium or alternate feed processing
business at the White Mesa Mill; any expectation that the White
Mesa Mill is well-placed to play an important role in the cleanup
of Cold War era abandoned uranium mines; any expectation that the
White Mesa Mill will continue to play an important role relating to
North American uranium conversion; any expectation that the Company
is ready to quickly resume uranium production once higher uranium
prices can be realized; any expectation that the Company has earned
or will maintain a reputation as a reliable, long-term domestic
uranium supplier; any expectation as to revenues and the value of
any recovered uranium to be retained by the Company under the
Agreement; any expectation about the Company's diverse revenue
generating opportunities and the ability to bring cash in the door
to help support the Company's operations in times of low commodity
prices; and any expectation that the Company may be able to
participate in any future abandoned uranium mine cleanup
activities. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as
"plans," "expects," "does not expect," "is expected," "is likely,"
"budgets," "scheduled," "estimates," "forecasts," "intends,"
"anticipates," "does not anticipate," or "believes," or variations
of such words and phrases, or state that certain actions, events or
results "may," "could," "would," "might" or "will be taken,"
"occur," "be achieved" or "have the potential to." All statements,
other than statements of historical fact, herein are considered to
be forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements express or implied by the
forward-looking statements. Factors that could cause actual results
to differ materially from those anticipated in these
forward-looking statements include risks associated with:
any expectation as to what the recommendations of the working
group may be; any expectation as to how the recommendations may be
implemented and the timing of implementation; any expectation that
the recommendations may support the U.S. uranium mining industry;
any expectation as to Energy Fuels' ability to participate in the
process; any expectation that Energy Fuels is uniquely
positioned to play a significant role in any recommended plan; any
expectation as to future vanadium or alternate feed processing
business at the White Mesa Mill; any expectation that the White
Mesa Mill is well-placed to play an important role in the cleanup
of Cold War era abandoned uranium mines; any expectation that the
White Mesa Mill will continue to play an important role relating to
North American uranium conversion; any expectation that the Company
is ready to quickly resume uranium production once higher uranium
prices can be realized; any expectation that the Company has earned
or will maintain a reputation as a reliable, long-term domestic
uranium supplier; any expectation as to revenues and the value of
any recovered uranium to be retained by the Company under the
Agreement; any expectation about the Company's diverse revenue
generating opportunities and the ability to bring cash in the door
to help support the Company's operations in times of low commodity
prices; any expectation that the Company may be able to participate
in any future abandoned uranium mine cleanup activities; and
the other factors described under the caption "Risk Factors" in the
Company's most recently filed Annual Report on Form 10-K, which is
available for review on EDGAR at
www.sec.gov/edgar.shtml, on SEDAR at
www.sedar.com, and on the Company's website at
www.energyfuels.com. Forward-looking statements contained
herein are made as of the date of this news release, and the
Company disclaims, other than as required by law, any obligation to
update any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if
management's estimates or opinions should change, or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. The Company assumes no obligation to
update the information in this communication, except as otherwise
required by law.
All references to $ in this news release are references to
US$, unless specified otherwise.
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SOURCE Energy Fuels Inc.