Uranium Trade Petition - National Security -US Secretary of...

Uranium Trade Petition - National Security -

US Secretary of Commerce Wilbur Ross accepted the 232 petition and said the following on July 18, 2018: “Our production of uranium necessary for military and electric power has dropped from 49 percent of our consumption to five percent. The Department of Commerce’s Bureau of Industry and Security will conduct a thorough, fair, and transparent review to determine whether uranium imports threaten to impair national security.”

Unfortunately, while the Trump administration does favor a excellent “America First” approach, Energy Fuels and its shareholders will need to be patient.

The DOC initiated its investigation on July 18, 2018. And with 270 days to prepare and deliver their report to President Trump, this is not an issue that’s likely to be cleared up quickly, however new fundermental changes  should be forthcoming.

Uranium Trade PetitionOn January 17, 2018, Energy Fuels and Ur-Energy (NYSE: URG) jointly requested that the Department of Commerce investigate uranium imports.

In the petition, the two companies assert that US national security is at risk because state-owned and state-subsidized companies from Russia, Kazakhstan, Uzbekistan, and China currently supply a substantial amount of uranium and nuclear fuel to U.S. companies and US interests.

Energy Fuels and Ur-Energy proposed that 25% of the U.S. nuclear market be reserved for U.S. uranium miners and that U.S. government utilities and agencies be required to buy their uranium from U.S. producers. 

Energy Fuels and Ur-Energy chose to file their petition under Section 232 of the Trade Expansion Act of 1962, which was created to protect critical national security industries that had become threatened by imports.