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The United States and Russia signed an agreement to conduct feasibility studies (FS) in order to convert Russian research nuclear reactors to using low-enriched uranium. This recent joint U.S.- Russian cooperation demonstrates the increasingly globalized nature of nuclear energy.
By Dave Brown – Exclusive to Uranium Investing News
The United States and Russia signed an agreement to conduct feasibility studies (FS) in order to convert Russian research nuclear reactors to using low-enriched uranium. A number of research reactors in the U.S. have already been converted, as part of the non-proliferation initiative in order to diminish the presence of highly enriched uranium which could also be utilized in the manufacturing of nuclear weapons.
Sergei Kiriyenko, the head of Russia’s state-owned nuclear-energy group Rosatom, and U.S. deputy energy secretary Daniel Poneman signed the document. Mr. Poneman indicated that joint U.S.-Russian cooperation on such issues demonstrates the increasingly globalized nature of nuclear energy. The multilayer fuel cycle includes natural uranium resources from various countries, enrichment of the fuel, transportation, and storage of used fuel featuring the U.S. as a prominent participant along the value chain.
Mining News
Last month, the uranium-holding unit of Rosatom, ARMZ, acquired 51 percent of the shares of Uranium One (TSX:UUU). The Nuclear Regulatory Commission (NRC) in addition to U.S. agencies approved the deal. On Monday the Financial Times reported the transaction could allow ARMZ control of more than half of U.S. uranium production; however, Nick Carter, vice president for Uranium of Ux Consulting in Roswell, Georgia, said Federal oversight of the nuclear industry should alleviate security concerns that a foreign power would control uranium production.
The NRC safety-evaluation report concluded that “day-to- day project development, operations and any decommissioning activities” at mines in the Irigaray/Christensen Ranch and Moore Ranch in Wyoming will be made by Uranium One’s two U.S. based subsidiaries, Uranium One USA Inc. and Uranium One Americas Inc. The regulatory commission has required ARMZ to notify regulators of any personnel changes at the company’s U.S. mines. The report has indicated that Uranium One and ARMZ lack a license to export nuclear fuel, and material from the mine must be used in the U.S. with most of U.S. nuclear power reliant on imported uranium.
Additional Developments
Energy Fuels Inc. (TSX:EFR), a Canadian uranium and vanadium development company that’s amassing land holdings in formerly producing areas of Utah and Colorado, has acquired additional mining claims from Uranium One. Financial details of the agreement between the companies were not disclosed. The acquisition from Uranium One covers 1,942 acres in the Sage Plain area and includes 94 contiguous mining claims.
The purchase is facilitated via Colorado Plateau Partners LLC, a 50-50 joint venture between Energy Fuels and Royal Resources Ltd. (ASX:ROY). The properties acquired by the joint venture border the Deremo and Calliham Mines and include the historically productive Sage Mine.
Last week, Energy Fuels announced it had acquired 1,400 acres near its Energy Queen Mine in Utah in return for providing certain mining data and a production royalty to Uranium One.
The properties in the most recent transaction are about 100 kilometres from the proposed Pinon Ridge mill that Energy Fuels plans to build on its existing holdings if economically viable conditions are enabled. The company’s strategy is to consolidate ownership of the entire Uravan mineral belt, an area in southeast Utah and southwest Colorado that has been a known source of uranium since the late 1800’s.
Energy Fuels shares are currently trading at 70 cents, strengthening slightly 1.5 percent from the previous trading session. Uranium One continues to perform well in the market with share prices increasing almost 3 percent into the $5.68 range. The market has also demonstrated approval for Royal Resources with its share price trading 2 percent higher into the 18 cent range.
Spot Price Movement
Uranium’s spot price for the current week remains unchanged at $60.25 per pound, from the previous level according to TradeTech. The sustained activity of buyers during the past month was reduced considerably during the latter half of last week. Only one transaction was reported this week. A number of competing interests, including traders, utilities and investors appear to be contemplating purchases, but potential buyers for substantial volume are exercising a high degree of discretion. Most sellers are holding firmly to their offering prices since recent buying activity has significantly reduced short term supply inventory.
