Energy Fuels Inc (NYSE:UUUU) (TSX:EFR), a leading producer of uranium and vanadium in the US, is applauding President Trump for signing an executive order declaring a state of emergency to address America's overreliance on critical minerals from foreign adversaries.
In a statement Thursday, a day after the order was issued, the company said it believes the decision could be a major step toward providing tangible support and/or funding to be directed toward producers and processors of critical minerals, such as Energy Fuels.
In 2018, the Secretary of Interior issued a final list of 35 minerals deemed critical to US national security and the economy, including uranium, vanadium, and the rare earth elements group.
Colorado-based Energy Fuels has been the leading US producer of uranium since 2017, and the company's assets have produced over 16 million pounds of uranium since 2006, placing it second only to Cameco in the US.
In 2019, Energy Fuels produced 1.8 million pounds of high-purity vanadium, making the company the largest producer of vanadium in the US last year. Earlier this year, the company announced its plan to enter into the rare earth processing business, where the company believes its White Mesa Mill can play a critical role in bringing the rare earth element supply chain back to the US.
At the end of 2020, the company said it expects to hold significant inventories of both uranium and vanadium that have been produced in the US.
Importantly, Energy Fuels noted that the Order also "begins the process for the Department of Interior to develop a program to use its authorities under the Defense Production Act to fund mineral processing that protects our national security."
Energy Fuels said it holds over 11.5 million pounds of licensed uranium processing capacity in three facilities, including two in situ recovery (ISR) uranium facilities and the White Mesa Mill, which is the only conventional uranium and vanadium processing facility in the US. This is more uranium processing capacity than any other US uranium company, and Energy Fuels said it holds more in-ground uranium resources than any other US uranium miner.
"President Trump made a strong statement last night on the importance of bringing the production of critical minerals back to the United States,” said CEO Mark Chalmers.
“These minerals are needed for aerospace, computers, cell phones, electrical generation and transmission, renewable energy systems and batteries, and advanced electronics. This is an unacceptable situation for a superpower like the United States, and we applaud President Trump for taking bold action to address this critical need.”
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