More than a year after Ur-Energy Inc. (NYSE: URG) and Energy Fuels Inc (NYSE: UUUU) jointly filed a petition under Section 232 of the Trade Expansion Act of 1962, President Donald Trump issued a memorandum on uranium imports.
The Trump Memo
Secretary of Commerce Wilbur Ross found that uranium is being imported in quantities and circumstances that threaten to impair the country's national security.
Trump said in the memo that he does not agree with Ross' finding that uranium imports threaten national security as defined under Section 232.
The White House memo calls for the establishment of the United States Nuclear Fuel Working Group to address Ross' concerns over domestic uranium production and to develop recommendations for the revival and expansion of domestic nuclear fuel production.
"I agree with the Secretary that the United States uranium industry faces significant challenges in producing uranium domestically and that this is an issue of national security," Trump said.
Ur-Energy CEO Jeffrey Klenda said in a Monday statement that, while the company hoped for a different outcome, it appreciates the White House's consideration of the petition.
"We firmly believe a healthy nuclear fuel cycle, beginning with a sustainable uranium mining industry, is imperative to national security. As the Trump administration broadens its review of ways to revive and expand domestic uranium production, we will continue our work alongside the administration and with our customers to find solutions to correct the dysfunctional market. We will continue to examine all alternatives."
Energy Fuels CEO Mark Chalmers said the companies asked for relief for the uranium mining industry in their petition.
"Not only did the president recognize the threat to national security and the need for relief for the uranium mining industry, he also acknowledged that the national security threat to the whole nuclear fuel cycle, not only uranium miners, must be studied and addressed, in order to revitalize the nuclear energy industry."
Ur-Energy operates the Lost Creek uranium in-situ recovery project in south-central Wyoming.
Energy Fuels owns two fully licensed and constructed ISR uranium facilities in the U.S, with a combined capacity of 3.5 million pounds of uranium per year.
Ur-Energy shares were trading higher by 5.67% at 65 cents at the time of publication Monday, while Energy Fuels shares were trading flat at $1.93.
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