Ur-Energy Inc (TSE:URE) and Energy Fuels Inc (TSE:EFR) are jointly campaigning against a flood of imports of uranium products into the USA.
The pair jointly signed a petition to the US Department of Commerce (DOC) for Relief Under Section 232 of the Trade Expansion Act from imports of uranium products that threaten national security.
The petitioners would like a “buy American” policy for the USA nuclear industry, with at least 25% of consumed uranium by US nuclear reactors from US mines, as per current – but largely disregarded – government policy.
Imports of uranium from state-owned and state-subsidized enterprises in Russia, Kazakhstan and Uzbekistan now fulfill nearly 40% of US demand, while domestic production fulfills less than 5%.
The petitioners noted that in 2017, uranium production in the US fell close to historic lows and production this year is likely to be even lower, as imports continue to come in from the above-mentioned countries, not to mention China.
“A healthy uranium mining industry is vital to US national security because it supplies fuel for nuclear power plants that are a key component of the nation's critical energy infrastructure and essential defense needs,” the companies said in a joint statement.
The pair – the two main US uranium producers – want the President to use his authority to adjust imports to ensure the long-term viability of the US uranium mining industry.
Today's extreme dependence is not a matter of foreign competition legitimately underpricing domestic production, the pair argues; it is the result of certain foreign state-subsidy policies that undermine US companies who could otherwise compete fairly on a global basis.
The petition suggests the implementation of a requirement for US federal utilities and agencies to buy US uranium in accordance with the President's Buy American policy.
These remedies are expected to result in US utilities purchasing roughly 12mln pounds of uranium per year from US producers, based on recent data. This would be expected to create a healthy US uranium mining industry, bolster national defense, and improve supply diversification for US utilities and their customers, according to the petition.
Greater diversification will lessen the exposure of the US government, US utilities and their customers to the policies of nations such as Russia, Kazakhstan, and China.
US utilities and their customers will also receive greater protection from supply shocks, price increases, and other geopolitically motivated actions of foreign state-controlled uranium producers, the North American uranium production companies maintain.
“Likewise, a strong domestic uranium mining industry will be able to reliably supply the required domestic uranium that is critical to our national defense programs. The US government will provide support to a vital national security industry while maintaining a high degree of competition that encourages innovation and lower prices. These remedies will reduce dependence on imports that fuel clean energy, and support reductions in air pollution and carbon emissions,” the petition declared.
Shares in Energy Fuels were up 4.4% at C$2.15 in mid-morning trading in Toronto, while Ur's shares were 4.5% higher at C$0.93.