US President signs uranium import prohibition

14 May 2024

The act prohibiting the importation into the USA of unirradiated, low-enriched uranium (LEU) that is produced in the Russian Federation or by a Russian entity has been signed into law by President Joe Biden.

President Biden pictured signing legislation earlier this year. The President has now signed into law HR 1042. (Image: The White House/Adam Schultz)

The president signed HR 1042, the Prohibiting Russian Uranium Imports Act, on 13 May - two weeks after the bill was passed unanimously by the US Senate. The legislation bans the import of Russian-produced unirradiated LEU as well as the import of unirradiated LEU that has been swapped for banned uranium.

The prohibition on imports of LEU comes into effect 90 days after the date of the enactment of the bill, and will last until the end of 2040. Waivers may be granted to allow the import of limited amounts of LEU, under certain circumstances, until 1 January 2028.

"Today, President Biden signed into law a historic series of actions that will strengthen our nation's energy and economic security by reducing - and ultimately eliminating - our reliance on Russia for civilian nuclear power," US National Security Advisor Jake Sullivan said.

"This new law re-establishes America's leadership in the nuclear sector. It will help secure our energy sector for generations to come. And - building off the unprecedented USD2.72 billion in federal funding that Congress recently appropriated at the President's request - it will jumpstart new enrichment capacity in the United States and send a clear message to industry that we are committed to long-term growth in our nuclear sector."

He added that the law also delivers on multilateral goals, including last year's announcement by the USA with Canada, France, Japan and the UK of plans to collectively invest USD4.2 billion to expand their enrichment and conversion capacity. "I am proud to say that with these funds from Congress, we have well-exceeded that pledge and are working with industry to realise this ambition," he added.

HR 1042 complements the Nuclear Fuel Security Act, legislation aimed at revitalising the US nuclear fuel industry, which was included as part of the National Defense Authorisation Act for fiscal 2024, which was signed into law in March.

According to a December 2023 US House Report on HR 1042, the USA currently imports more than 20% of its enriched uranium from Russian state-owned nuclear company Rosatom and its subsidiary Tenex.

In response to the measure, Kremlin spokesman Dmitry Peskov was reported by the Russian Tass news agency to have told a news briefing "it’s hard for the Americans to compete with us on the international market", adding that the ban was "nothing more than unfair competition" and not critical for the Russian nuclear industry: "Our nuclear industry is one of the most advanced in the world. We will continue to develop this industry."

US Q1 uranium production highest since 2018

14 May 2024

US production of 82,533 pounds U3O8 (32.1 tU) in the first quarter of 2024 was the highest Q1 production since 2018 and almost 80% more than production for the whole of 2023.

The ion exchange plant at the Rosita facility (Image: enCore Energy)

According to the US Energy Information Administration's (EIA) latest Domestic Uranium Production Report, US uranium production in the first three months of the year was from five facilities, all using in-situ leach methods rather than conventional mining and milling. Four of these - Nichols Ranch, Ross, Lost Creek and Smith Ranch-Highland - are in Wyoming.

The fifth facility, Rosita, in Texas, resumed operations in November, having last produced uranium in 2008. EnCore Energy Corp announced the first shipment of uranium from the plant, which has an annual capacity of 800,000 pounds U3O8, in March.

The EIA listed three US uranium mills as "on standby" in Q1: Shootaring Canyon and White Mesa, both of which are in Utah, and Sweetwater in Wyoming. Anfield Energy Inc has recently said that it is targeting a restart of the Shootaring Canyon mill in 2026 - it has been on standby since 1982. The Vancouver-based company has submitted its plans for reactivating the mill, which it acquired in 2015, to Utah state regulators for approval.

Would-be producers making the most of the uranium market

NexGen Energy Ltd has said its newly announced strategic purchase of 2.7 million pounds U3O8 (1039 tU), together with a recent share placement, "will significantly assist the company in funding the anticipated capital needs to develop the Rook I Project" in Canada. Denison Mines Corp intends to use its physical uranium investment to support future project financing efforts for Phoenix - and has just sold 100,000 pounds U3O8 from its physical uranium holdings at more than three times the price it paid for it.

Rook I (Image: NexGen)

NexGen said on 8 April it had entered into a binding term sheet with Canadian hedge fund MMCap International Inc SPC for the purchase of 2,702,410 pounds U3O8 for an aggregate purchase price of USD250 million, for convertible debentures equivalent to roughly 4.3% of the company's issued and outstanding common shares.

The announcement came days after the company announced a CAD224 million (USD164 million) share offering to Australian investors. This Australian Chess Depository Interest (CDI) offering is expected to close on or around 15 May.

On closing of the CDI offering and the transaction with MMCap, NexGen said it will have some CAD600 million in cash and USD250 million worth of physical uranium on its balance sheet.

NexGen CEO Leigh Curyer said the purchase represents a "strong opportunity for NexGen to bolster its marketing discussions and optimises the optionality of project financing structures under evaluation", at a time when available physical uranium is "extremely tight" and expected to continue to be scarce given the long-term supply deficit. "Upon closing of the CDI offering and this strategic uranium purchase, the company will hold cash and uranium worth over CAD930 million and will significantly assist the company in funding the anticipated capital needs to develop the Rook I Project," he said.

Rook I is in the Southwestern Athabasca Basin in Saskatchewan, Canada. It is 100% owned by NexGen and hosts the Arrow uranium deposit, with measured and indicated mineral resources of 256.7 million pounds U3O8. A 2021 feasibility study outlines a mine capable of producing some 29 million pounds U3O8 per year over the first 5 years of an 11-year mine life, making it the largest and lowest cost uranium mine in the world according to NexGen.

The company is currently working to secure the federal and provincial approvals needed to move forward with the mine. In November, it received approval from Saskatchewan's Ministry of Environment to proceed with the development of Rook I, making NexGen the first company in more than 20 years to receive full provincial environmental assessment approval for a greenfield uranium project in Saskatchewan.

Denison confirms uranium sale

Denison is another company with Canadian uranium projects to develop, with a 95% interest in its flagship Wheeler River project which the company describes as the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region of northern Saskatchewan. As well as many uranium properties, the company's interests in Saskatchewan also include a 22.5% ownership interest in the McClean Lake Joint Venture and the McClean Lake uranium mill. It is targeting production of 800,000 pounds U3O8 (on 100% basis) from McClean Lake North in 2025, following an announcement earlier this year by with its joint venture partner Orano Canada Inc of plans to restart operations at McClean Lake using the patented Surface Access Borehole Resource Extraction - or SABRE - mining method.

In its quarterly results announcement on 8 May, the company confirmed it had completed the sale of 100,000 pounds U3O8 from its physical uranium holdings, at a price of USD100.00 per pound. The sale, which was completed in April, was agreed in January and is part of the company's plans to sell around 300,000 pounds U3O8 from its physical uranium holdings this year. Denison said it acquired its physical uranium position in 2021 at an average cost of USD29.65 per pound U3O8.

President and CEO David Cates spoke of the company's strategy of holding investments in physical uranium to support future financing of Phoenix, and how Denison's portfolio of uranium reserves, resources, and physical holdings has "greatly appreciated" in value over recent months.

"As Denison has avoided entering low-priced uranium supply contracts in recent years and has held its physical uranium investment to support future project financing efforts for Phoenix, we are now in an enviable spot with significant uncommitted uranium production and physical holdings potentially available to the market at time of expected scarcity. Taken together with continued geopolitical instability and the expected emergence of significant additional demand from new nuclear builds, it is an ideal time for our Company to be readying to build a low-cost Saskatchewan-based uranium mine," he said.

10 May 2024

Post-irradiation testing of high-burnup fuel under way at ORNL

10 May 2024

High burnup fuel rods manufactured by GE Vernova's Global Nuclear Fuel (GNF) are being examined at the US Department of Energy's Oak Ridge National Laboratory (ORNL) after spending six years in a commercial nuclear power reactor.

The fuel shipment arrives at ORNL (Image: US Department of Energy)

The rods, manufactured at GNF's fabrication facility in Wilmington, North Carolina, with support from the Department of Energy's Accident Tolerant Fuel programme, were shipped to the lab after completing three full cycles of operation at a US nuclear power plant. ORNL will conduct post-irradiation experiments over the next several years to verify safety and performance. Results from the experiments will be used to support the commercial deployment of such fuels.

Higher burnup fuel is designed to remain in the reactor core for longer periods of time before it is removed for long-term storage, leading to fewer refuelling outages, increased power output for better economics, and less used fuel over the lifetime of the reactor.

"This shipment of these rods is another milestone in the drive to develop the next generation of even safer and more reliable fuel," said Mike Chilton, Executive Vice President, GNF. "We are proud to be part of this collaboration with ORNL and DOE to benefit the entire industry."

"This fuel shipment to Oak Ridge National Laboratory is an important step in GNF's efforts to commercialise their high burnup fuel," said Frank Goldner, a nuclear engineer at DOE's Office of Nuclear Energy. "High burnup fuels are expected to enhance the performance of today's reactors and will help us on our path to reach net-zero emissions by 2050."

Researched and written by World Nuclear News