US company also preparing two more sites for operation
US-based Energy Fuels said on Thursday (21 December) it had started production at three of its permitted and developed uranium mines in Arizona and Utah, encouraged by higher prices of the heavy metal.
The company is also preparing two more mines in Colorado and Wyoming for expected production within a year and advancing permitting on several other large-scale US mine projects to increase uranium production in the coming years.
The three mines where production has started are Pinyon Plain, La Sal and Pandora. The two mines being prepared for production are Whirlwind and Nichols Ranch.
Energy Fuels said Ore mined from the three mines during 2024 will be stockpiled at the company’s White Mesa Mill in Utah for processing in 2025.
“Due to the substantial increase in uranium prices, US government support for nuclear energy and nuclear fuel, and a global focus on reducing carbon-emissions, Energy Fuels is resuming large-scale uranium production,” Energy Fuels chief executive officer Mark Chalmers said in a statement.
Uranium spot prices are currently near $90 per pound – the highest level seen since 2007, when it reached $135 per pound, or over $200 per pound on an inflation-adjusted basis, Chalmers added.
The company's decision to ramp-up uranium production was driven by several favourable market and policy factors, including strengthening spot and long-term uranium prices, increased buying interest from US nuclear utilities, US and global government policies supporting nuclear energy to address global climate change, and the need to reduce US reliance on Russian and Russian-controlled uranium and nuclear fuel.
Earlier this month, the US House of Representatives passed a ban on imports of Russian uranium as lawmakers seek to add pressure on Moscow for its war on Ukraine, although the measure has waivers in case of supply concerns for domestic reactors.
The recent United Nations Cop28 climate conference ended with a landmark consensus that called for a transition away from fossil fuels and an acceleration of zero- and low-emission technologies, including nuclear energy. It marked the first time nuclear energy had been formally specified as one of the solutions to climate change in a Cop agreement.
That consensus followed a declaration endorsed by 22 nations earlier at Cop28to triple nuclear power capacity by 2050, marking the first time that governments have joined together at Cop to endorse nuclear power. While the price of uranium has more than doubled over the past three years, it remains far below its peak of $140/lb reached in 2007.
