- Energy Fuels plans a substantial uranium production resurgence, targeting a run-rate of 1.1 to 1.4 million pounds per year by mid- to late-2024, driven by strengthened market conditions, governmental support for nuclear energy, and a focus on reducing reliance on Russian-controlled uranium.
- The company’s multifaceted approach includes fully ramping up operations at the Pinyon Plain, La Sal, and Pandora mines, preparing Whirlwind and Nichols Ranch mines for production, and advancing projects like Roca Honda, Sheep Mountain, and Bullfrog, with a potential to expand uranium production to 5 million pounds U3O8 per year.
- Energy Fuels’ strategic moves extend beyond uranium, as the company anticipates producing 1-2 million pounds of vanadium annually, showcasing a commitment to diversification and aligning with global initiatives to address climate change.
Energy Fuels is gearing up for a significant boost in uranium production, with full-scale operations expected at the Pinyon Plain, La Sal, and Pandora mines by the middle to late stages of 2024. Projections indicate an annual uranium output ranging from 1.1 to 1.4 million pounds during this period. The technical report for Pinyon Plain in Arizona has outlined total proven and probable reserves of 1,567,800 pounds U3O8. Simultaneously, Pandora and La Sal, integral components of the La Sal Project in eastern Utah, boast estimated uranium resources of 4.3 million pounds U3O8, categorized as inferred.
Looking beyond, Energy Fuels is diligently preparing the Whirlwind (Colorado) and Nichols Ranch (Utah) mines for uranium production within the coming year. This strategic move aims to elevate the company’s uranium production to over 2 million pounds of U3O8 annually, commencing in 2025, contingent upon favorable market conditions. Concurrently, plans are in place to advance permitting and development for the Roca Honda (New Mexico), Sheep Mountain (Wyoming), and Bullfrog (Utah) projects. If successful, these initiatives could potentially amplify uranium production to a substantial 5 million pounds U3O8 per year in the foreseeable future. Additionally, Energy Fuels anticipates an annual production of 1-2 million pounds of vanadium.
During the interim, the company will sustain uranium production through its alternate feed recycling program, expected to yield approximately 150,000 pounds U3O8 (57.7 tU) in 2024. Simultaneously, ore from conventional mines will be stockpiled for processing in 2025, subject to market conditions, contract requirements, and the mill schedule. Moreover, Energy Fuels envisions commencing an ore buying program from third-party miners in 2024.
The decision to revitalize uranium production aligns with prevailing market and policy dynamics. Strengthening spot and long-term uranium prices, heightened interest from US nuclear utilities, and supportive government policies at both national and global levels to address climate change are key driving factors. Moreover, the move is strategic in reducing US dependence on Russian-controlled uranium and nuclear fuel.
In terms of sales, Energy Fuels aims to sell 200,000 pounds U3O8 into its existing portfolio of long-term contracts in 2024, with an additional option for a utility customer to purchase 100,000 pounds U3O8 from the company during the same year. The company remains agile in evaluating further spot and/or long-term uranium sales opportunities during 2024 and beyond.
Mark Chalmers, the CEO of Energy Fuels, underscores the significance of the decision, citing the considerable increase in uranium prices, robust government support for nuclear energy, and the global emphasis on curbing carbon emissions. He emphasizes that the company’s strategic investments over recent years uniquely position it to successfully resume large-scale uranium production in 2024, citing its substantial contribution to nearly two-thirds of all uranium produced in the US over the past five years.