Energy Fuels Inc (NYSEAMERICAN:UUUU) (TSE:EFR), a US uranium producer, has announced plans to enter the rare earth element (REE) sector and will host a webcast on Wednesday to discuss the opportunity.
The company believes its fully-licensed White Mesa Mill (WMM) — the only uranium and vanadium mill in operation in the US today — can play an important role in bringing the REE supply chain back to the US from China.
"At Energy Fuels, we pride ourselves on being the leading US uranium miner,” CEO Mark Chalmers said in a statement. “But we're also entrepreneurs, and there is literally no other facility in North America with the diverse capabilities and licensing flexibility of the White Mesa Mill. We are always examining ways to leverage this unique asset to generate cashflow. This is where we expect REE's will come into play.”
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The company is beginning a program to evaluate the production of REEs at the White Mesa Mill, located near Blanding, Utah. The US government has declared REEs critical to national defense, the company said, and White Mesa Mill could play a role in reducing the need for processing different types of REE ores in China.
One major impediment to the operation of REE processing facilities in the US is licensing due to the uranium and other radioactive elements associated with REE ore streams, the company said. If things go according to plan, WMM can be utilized to allow for the recovery of REEs, along with uranium, from those ore streams.
The company has hired Australian public research organization ANSTO to assist in testing, mineralogy, flowsheet development and pilot plant engineering at WMM to help advance this initiative.
“Over the past several months, we have received a number of inbound communications, from both private entities and the US government, inquiring about REE processing at the WMM,” Chalmers said. “We believe we have the opportunity to turn the WMM into a 'one-stop-shop' for US critical mineral processing, thereby reducing our reliance on China.”
In January, President Trump directed the US Department of Defense “to take actions to develop and purchase equipment and materials needed for creating, maintaining, protecting, and expanding production capability for [REEs]," in a letter to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services.
“The Trump Administration has prioritized bringing REE production back to the US, and they are willing to invest significant dollars into supporting domestic REE infrastructure,” Chalmers said. “We believe Energy Fuels holds a distinct advantage as an early mover in this high-value, high-growth sector, and we look forward to engaging with the US government on this important national security initiative."
The webcast to discuss the REE opportunity will be held at 4:15 pm ET on Wednesday. The company also plans to cover the current uranium and vanadium markets, particularly in light of recently announced shutdowns of uranium production in Canada, Namibia and Kazakhstan due to the coronavirus crisis.
Those interested in joining the conference call and webcast can dial 1-888-664-6392 toll-free in the US and Canada or 416-764-8659.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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