DENVER, July 18, 2018 /PRNewswire/ - Energy Fuels
Inc. (NYSE American: UUUU; TSX: EFR) ("Energy Fuels") and Ur-Energy
Inc. (NYSE American: URG; TSX: URE) ("Ur-Energy") are pleased
to announce that on July 18, 2018,
the U.S. Department of Commerce ("DOC") initiated an investigation
into the effects of uranium imports on U.S. national security. This
investigation was requested by Energy Fuels and Ur-Energy in their
Petition for Relief Under Section 232 of the Trade Expansion Act of
1962 (the "Petition"), which was filed jointly by the companies on
January 16, 2018.
The Secretary of Commerce (the "Secretary") now has 270 days to
conduct the investigation and submit a report to the President of
the United States containing the
Secretary's findings and proposed remedy, if any. Following receipt
of the Secretary's report, the President then has up to 90 days to
act on the Secretary's recommendations and, if necessary, take
action to "adjust the imports of an article and its derivatives"
and/or pursue other lawful, non-trade-related actions necessary to
address the import threat.
Energy Fuels and Ur-Energy requested that the DOC conduct its
investigation due to the following factors:
- In 2017, U.S. uranium production fell to near historic lows
due, in large part, to uranium and nuclear fuel imported from
state-subsidized foreign entities; 2018 domestic production is
likely to be even lower, with Q1-2018 production being 50 percent
lower than Q1-2017.
- In 2017, imports of uranium from state-owned and
state-subsidized enterprises in Russia, Kazakhstan, and Uzbekistan fulfilled about one-third of U.S.
demand, while purchases of U.S. uranium by owners of U.S. nuclear
reactors dropped by 46 percent. In 2018, domestic producers are
projected to fulfill only about 2 percent of total U.S. commercial
demand.
- Increasing levels of state-subsidized nuclear fuel are expected
to be imported from Russia and
China in the coming years, which
would likely further displace U.S. uranium production. If
Russia and its allies take control
of this critical fuel, the threat to U.S. national and energy
security would be incalculable.
- While U.S. producers can fairly compete with foreign production
on a level playing field, it is difficult for them to compete with
heavily subsidized foreign production. Foreign policies of other
nations should not be permitted to jeopardize this crucial U.S.
industry.
- A sustainable domestic uranium mining industry is vital to U.S.
national security because it supplies uranium for essential defense
needs and fuel for nuclear power plants that are a key component of
the nation's critical clean energy infrastructure.
- Ur-Energy and Energy Fuels, both headquartered in Denver, Colorado, are the two main U.S.
uranium producers, together mining more than half of all U.S.
uranium in 2017.
- In the Petition, the companies proposed two complementary
remedies: (1) a quota that limits imports of uranium into the U.S.,
effectively reserving 25 percent of the U.S. market for domestic
uranium production, and (2) a requirement for U.S. federal
utilities and agencies to buy U.S. uranium in accordance with the
President's Buy American Policy. The companies' proposed remedies
are expected to result in U.S. utilities purchasing approximately
12 million pounds of uranium per year from U.S. production.
- The proposed remedies are expected to restore a sustainable
U.S. uranium mining industry, bolster national defense, and support
energy security through reduced reliance on state-subsidized
uranium and nuclear fuel imports from nations that compete with the
U.S. for geopolitical influence and commercial advantage.
- An econometric model prepared in connection with the Petition
demonstrates that the effects of the proposed remedies on utilities
and consumers are expected to be negligible.
Please refer to Energy Fuels' and Ur-Energy's press releases on
January 16, 2018, for further
information on the background and legal basis for the Petition.
Additional information regarding the trade action can be found on
the companies' respective websites shown below. As with any
governmental investigation, there can be no certainty of the
outcome of the investigation or the recommendation of the
Secretary, and therefore the outcome of this process is
uncertain.
About Energy Fuels: Energy Fuels is a leading
integrated U.S. uranium mining company, supplying
U3O8 to major nuclear utilities. Its
corporate offices are in Denver,
Colorado, and all of its assets and employees are in the
western United States. Energy
Fuels holds three of America's key uranium production centers, the
White Mesa Mill in Utah, the
Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in
Texas. The White Mesa Mill is the
only conventional uranium mill operating in the U.S. today and has
a licensed capacity of over 8 million pounds of
U3O8 per year. The Nichols Ranch Processing
Facility is an in-situ recovery production center with a licensed
capacity of 2 million pounds of U3O8 per
year. Alta Mesa is an in-situ
recovery production center with a licensed capacity of 1.5 million
pounds of U3O8 per year, which is currently
on care and maintenance due to low uranium prices. Energy Fuels
also has the largest uranium resource portfolio in the U.S. among
producers, and uranium mining projects located in a number of
Western U.S. states, including one producing in-situ recovery
project, mines on standby, and mineral properties in various stages
of permitting and development. Energy Fuels also produces vanadium
as a by-product of its uranium production from certain of its mines
on the Colorado Plateau, as market conditions warrant. 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.
About Ur-Energy: Ur-Energy is a U.S.
uranium mining company with corporate and operations offices in
Denver, Colorado, and Casper, Wyoming, respectively. Ur-Energy
operates the Lost Creek in-situ recovery uranium
facility in south-central Wyoming.
Ur-Energy has produced, packaged and shipped more than 2 million
pounds from Lost Creek since the commencement of operations.
Applications are under review by various agencies to incorporate
Ur-Energy's LC East project area into the Lost Creek permits, and
the company has begun to submit applications for permits and
licenses to construct and operate its Shirley Basin Project.
Ur-Energy is engaged in uranium mining, recovery and processing
activities in the United
States, including the acquisition, exploration, development
and operation of uranium mineral properties. The primary trading
market for Ur-Energy's common shares is the NYSE American under the
trading symbol "URG;" Ur-Energy's common shares also trade on the
Toronto Stock Exchange under the trading symbol "URE." Ur-Energy's
website is www.ur-energy.com.
Cautionary Note Regarding Forward-Looking
Statements: Certain information contained in this news
release, including any information relating to: the expected
increases in foreign state-subsidized imports of uranium in coming
years; expected future U.S. uranium production and the further
negative impacts of such imports on U.S. uranium production and
national security; the outcome of the Department of Commerce
Section 232 investigation, including whether or not the Secretary
of Commerce will make a recommendation to the President and the
nature of the recommendation; whether or not the President will act
on the recommendation and, if so, the nature of the action and
remedy; the expected benefits of the proposed remedies, including:
restoring a sustainable U.S. uranium mining industry and the
benefits of a sustainable domestic uranium mining industry to U.S.
national security, bolstering national defense, and supporting
energy security; the expected impacts on U.S. production and the
U.S. uranium mining industry; the ability of U.S. producers to
compete with foreign production on a level playing field; the
reduction of dependence on imports; the negligible impact on U.S.
utilities and consumers; and any other statements regarding Energy
Fuels' or Ur-Energy's future expectations, beliefs, goals or
prospects; constitute forward-looking information within the
meaning of applicable securities legislation (collectively,
"forward-looking statements"). All statements in this news release
that are not statements of historical fact (including statements
containing the words "expects," "does not expect," "plans,"
"anticipates," "does not anticipate," "believes," "intends,"
"estimates," "projects," "potential," "scheduled," "forecast,"
"budget" and similar expressions) should be considered
forward-looking statements. All such forward-looking statements are
subject to important risk factors and uncertainties, many of which
are beyond Energy Fuels' and Ur-Energy's ability to control or
predict. A number of important factors could cause actual results
or events to differ materially from those indicated or implied by
such forward-looking statements, including without limitation
factors relating to: the expected increases in foreign
state-subsidized imports of uranium in coming years; expected
future U.S. uranium production and the further negative impacts of
such imports on U.S. uranium production and national security; the
outcome of the Department of Commerce Section 232 investigation,
including whether or not the Secretary of Commerce will make a
recommendation to the President and the nature of the
recommendation; whether or not the President will act on the
recommendation and, if so, the nature of the action and remedy; the
expected benefits of the proposed remedies, including: restoring a
sustainable U.S. uranium mining industry and the benefits of a
sustainable domestic uranium mining industry to U.S. national
security, bolstering national defense, and supporting energy
security; the expected impacts on U.S. production and the U.S.
uranium mining industry; the ability of U.S. producers to compete
with foreign production on a level playing field; the reduction of
dependence on imports; the negligible impact on U.S. utilities and
consumers; and other risk factors as described in each of Energy
Fuels' and Ur-Energy's most recent annual reports on Form 10-K and
quarterly financial reports. Energy Fuels and Ur-Energy assume no
obligation to update the information in this communication, except
as otherwise required by law. Additional information identifying
risks and uncertainties is contained in Energy Fuels' and
Ur-Energy's respective filings with the various securities
commissions which are available online at www.sec.gov and
www.sedar.com. Forward-looking statements are provided for the
purpose of providing information about the current expectations,
beliefs and plans of the management of Energy Fuels and Ur-Energy
relating to the future. Readers are cautioned that such statements
may not be appropriate for other purposes. Readers are also
cautioned not to place undue reliance on these forward-looking
statements, that speak only as of the date hereof.
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SOURCE Energy Fuels Inc.