Uranium Could Soon Regain Designation as a Critical Mineral

Last year, uranium was removed from the federal list of critical minerals by the U.S. Geological Survey. However, it may not be long before the government declares it critical once again.

The finalized proposal submitted by the U.S. Geological Survey removed the radioactive material from the list of minerals that are considered important to economic and national security. The proposal quoted a legal requirement which stated that fuel minerals weren’t supposed to be included on the list.

Soon after this, the U.S. Department of Energy (“DOE”) released a report on minerals strategy stating that it was preparing its own critical materials list. The department explained that there were materials crucial for the transition to clean energy that weren’t included in the updated critical minerals list released by the U.S. Geological Survey.

While the department did not disclose if uranium would be included on its list, it did describe the radioactive element, as well as tellurium, cobalt and other rare earth elements, as materials of concern. The report from the DOE also demonstrated support of nuclear energy, endorsing efforts by the government to boost enrichment capabilities for uranium in the U.S. that are necessary for the production of high-assay, low-enriched uranium (“HALEU”) for advanced nuclear reactors.

In his statement, the department’s spokesperson Ramzey Smith stated that uranium could be considered for inclusion on the list by the department. The DOE is set to consult with stakeholders to identify a process for establishing and recommending critical materials that are important for the department’s mission areas.

There are risks to countries that rely on foreign sources of uranium, as significant amounts of the supply chain run through Kazakhstan and Russia. To help address these risks, the DOE plans to establish a national uranium reserve, which will be financed by Congress.

The president of the Uranium Producers of America, Scott Melbye, supports the material’s inclusion on the list. He explained that allowing miners of uranium to label their products as critical to the U.S. government would allow the industry to obtain a more captive audience at the capital. He added that uranium fit on a strategic crucial minerals list and that some strategic designation was needed given that Kazakhstan and Russia are still major players in the sector.

While the support for the use of nuclear energy grows more bipartisan, the radioactive material’s inclusion on the critical minerals list in 2018 caused distress among environmental activists and Democratic politicians. However, this may not be the case this time.

Once uranium is categorized as a critical metal, investors are likely to find the stocks of local extractors such as Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) a lot more attractive, especially in light of the resurgence of nuclear energy in the push to cut carbon emissions.

NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU

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