Establishing Strategic Uranium Reserve Now
Will Help Ensure U.S. Uranium Miners Can Benefit from the
Agreement's Long-Term Restrictions
LAKEWOOD, Colo.,
Sept. 14, 2020 /CNW/ - Energy
Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy
Fuels"), the leading producer of uranium in the United
States, is pleased to announce that the U.S. Department of
Commerce ("Commerce") has obtained Russia's agreement to extend limits on uranium
imports into the U.S. from Russia
through 2040 under an extended Russian Suspension Agreement
("RSA"). This is an important step toward maintaining the long-term
health of the U.S. uranium mining industry, especially since the
expiration of the RSA at the end of 2020 could have resulted in
unlimited Russian uranium imports into the U.S.
Commerce won important concessions from Russia, including lower quotas starting in the
mid-2020's, allowing only a portion of the quotas to be used for
the sale of U3O8 and conversion into the
U.S., and strict controls on Russian enrichment service
contracts.
Mark S. Chalmers, President and
CEO of Energy Fuels stated: "Energy Fuels thanks the
Department of Commerce for their efforts in reducing U.S.
dependence on Russian uranium in the long tem. This is a critical
step in restoring U.S. leadership in the global nuclear fuel sector
and helping to revive the U.S. uranium mining industry.
"While we are pleased with the long-term prospects available to
established U.S. uranium producers like Energy Fuels, the
shorter-term picture for the U.S. uranium industry still remains
uncertain. Even though Commerce has negotiated lower quotas
starting in the mid-2020's, the agreement allows for the
'grandfathering' of existing contracts between U.S. nuclear
utilities and Russian state-owned enterprises, which will actually
result in Russian uranium imports into the U.S. increasing during
the next three years, before decreasing in the mid 2020's. While
the agreement does a good job at blocking Russia's stated intention to expand its share
of the U.S. uranium market over the long-term, it only provides
U.S. uranium miners with limited immediate relief. Today's
announcement therefore highlights the importance and urgency of
Congress appropriating the funds requested by the U.S. Department
of Energy to support the strategic Uranium Reserve recommended by
the U.S. Nuclear Fuel Working Group. Establishing the Uranium
Reserve now will help ensure that U.S. uranium production
capabilities can benefit from the long-term restrictions imposed
under the extended RSA. We also support the efforts of Senator
John Barrasso of Wyoming to put this agreement into law 'so
Russia cannot walk away from the
deal' in the future.
"The U.S. cannot consider itself to be energy independent when
we are nearly 100% dependent on imports to fuel the nuclear power
plants that provide nearly 20% of U.S. electricity. It is vital
that Congress appropriate the funds to create the strategic Uranium
Reserve to support U.S. national security and reduce Russia's influence on the U.S. energy grid.
Energy Fuels will continue to lead industry initiatives to reduce
U.S. dependence on uranium imports from geopolitical challengers,
including Russia."
Commerce is releasing a draft amendment of the RSA for public
comment. Comments will be due by 5:00 pm
EDT on September 28, 2020. The
draft amendment is available to registered users at
https://access.trade.gov (reference case number A-821-802), and it
will also be published in the Federal Register. Commerce is
seeking to finalize an amendment to the RSA no later than
October 5, 2020, at which time it
will go into effect and become binding on the U.S. and Russia.
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 in-situ recovery
("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 operation standby and has a licensed capacity of 2
million pounds of U3O8 per year. The Alta
Mesa ISR Project is also on standby and has a licensed capacity of
1.5 million pounds of U3O8 per year. 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 Notes: 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 that an amendment to the RSA will
be finalized by no later than October 5,
2020; any expectation that a finalized RSA will be on the
terms announced by Commerce today; any expectation that a finalized
RSA will be an important step toward reducing U.S.
dependence on Russian uranium in the long term, restoring U.S.
leadership in the global nuclear fuel sector, and helping to revive
and maintain the long-term health of the U.S. uranium mining
industry; any expectation relating to the the long-term prospects
available to established U.S. uranium producers like Energy Fuels;
any expectation that Congress will appropriate the funds required
to create the strategic Uranium Reserve; any expectation that
establishing the strategic Uranium Reserve will support U.S.
national security, reduce Russia's
influence on the U.S. energy grid and help ensure that U.S. uranium
production capabilities can benefit from the long-term restrictions
imposed under the RSA; any expectation relating to the efforts of
Senator John Barrasso of
Wyoming to put this agreement into
law; and any expectation that Energy Fuels will continue to lead
industry initiatives to reduce U.S. dependence on uranium imports
from geopolitical challengers, including Russia. 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 that an amendment to the RSA will be finalized by no
later than October 5, 2020; any
expectation that a finalized RSA will be on the terms announced by
Commerce today; any expectation that a finalized RSA will be
an important step toward reducing U.S. dependence on Russian
uranium in the long term, restoring U.S. leadership in the global
nuclear fuel sector, and helping to revive and maintain the
long-term health of the U.S. uranium mining industry; any
expectation relating to the the long-term prospects available to
established U.S. uranium producers like Energy Fuels; any
expectation that Congress will appropriate the funds required to
create the strategic Uranium Reserve; any expectation that
establishing the strategic Uranium Reserve will support U.S.
national security, reduce Russia's
influence on the U.S. energy grid and help ensure that U.S. uranium
production capabilities can benefit from the long-term restrictions
imposed under the RSA; any expectation relating to the efforts of
Senator John Barrasso of
Wyoming to put this agreement into
law; any expectation that Energy Fuels will continue to lead
industry initiatives to reduce U.S. dependence on uranium imports
from geopolitical challengers, including Russia; 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.
It should further be noted that the proposed budgeted
activities are subject to appropriation by the Congress of
the United States, and there can
be no certainty of the outcome of this budget or the NFWG's
recommendations. Therefore, the outcome of this process
remains uncertain.
View original
content:http://www.prnewswire.com/news-releases/commerce-department-announces-deal-to-reduce-russian-uranium-imports-over-long-term-key-step-in-helping-to-revive-the-us-uranium-industry-301130339.html
SOURCE Energy Fuels Inc.