Energy metals exploration and development company Westwater Resources president and CEO Christopher M Jones says US uranium producers will benefit regardless of the decision taken by President Donald Trump regarding uranium imports.
The US Department of Commerce in July 2018 initiated a Section 232 investigation to determine whether the present quantity of uranium ore and product imports threaten to impair US national security.
Trump has up to 90 days from April 14 to decide whether to act on the matter, which can include quotas or tariffs.
“US utility companies are expected to come back to the market and stock up on fuel supplies even if the President decides to deny the petition.
“In the event that the decision is in favour of the Section 232 action, US producers will see greater demand for domestically produced uranium. Either way, we expect the price of uranium produced in the US to rise,” Jones said in a statement issued on Monday.
He noted that the US was heavily reliant on nuclear power for carbon free baseload power.
Quoting UxC, he stated that 20% of all uranium produced in the world was consumed in the US.
“Nuclear power represents the only electrical baseload solution for global electric power growth driven by economic expansion and a focus on carbon reduction.
“Uranium remains a key strategic focus for Westwater. [It] controls extensive mineral holdings in New Mexico and Texas. In addition, [it] owns the Rosita and Kingsville Dome processing facilities in Texas, both of which are licensed for production.”