Uranium Production and Development

At the World Climate Action Summit of the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28), 20 countries agreed on the Declaration to Triple Nuclear Energy. As the title suggests, the aim is to triple nuclear energy’s share of the global electricity matrix by 2050 and was the first COP document backing nuclear energy. Nuclear energy has the lowest carbon footprint of any electricity source and is the least land intensive, according to the World Economic Forum; a thimble-sized pellet of uranium produces as much energy as almost three barrels of oil, more than 350 cubic meters of natural gas and about half a ton of coal.

The US aims to capitalize on a domestic nuclear advantage, according to Curtis Moore, senior vice president of marketing and corporate development at Energy Fuels, the firm he forecasts to be the largest domestic producer by 2026: “There is a significant effort to rebuild domestic nuclear fuel capabilities, particularly in uranium conversion and enrichment, indirectly benefiting mining.”

In 2023, uranium purchases to fuel domestic nuclear power reactors increased 27% over 2022, according to the US Energy Information Administration. Most uranium was sourced from abroad, with 27% from Canada, 22% from Australia and Kazakhstan each, 12% from Russia and 10% from Uzbekistan. Only 5% was sourced domestically. This, however, will likely increase. In May 2024, President Biden signed the Prohibiting Russian Uranium Imports Act into law, unlocking US$2.72 billion in funding to build out the domestic nuclear fuel supply chain.

Energy Fuels operates the White Mesa mill in Utah, the only fully licensed and operating conventional uranium mill in the US. White Mesa had a 24% share of all US uranium production between 2012 and 2018. The mill's operational status has varied, often shifting between active production and standby modes, largely due to fluctuating uranium market prices and demand. During the Q2 2024, the White Mesa mill was on standby.

Despite these fluctuations, Energy Fuels plans to scale up uranium production by bringing their Sheep Mountain, Roca Honda and Bullfrog projects into production over the next 4 to 6 years. “Once operational, these projects could collectively produce 5-6 million pounds of uranium annually,” said Moore.

The Trump energy plan aims to boost nuclear energy, which currently makes up only 18.6% of US electricity production. “Trump will support nuclear energy production by modernizing the Nuclear Regulatory Commission, working to keep existing power plants open and investing in innovative small modular reactors,” said David Bernhardt, former Interior Secretary, on a press call.

These plans will bode well for New Mexico and Wyoming, as the top producers of uranium. They produced 347 and 250 million pounds respectively during 2024. As the world moves deeper into a new era, the importance of securing a reliable supply of essential energy materials cannot be overstated.