Kazatomprom is extending uranium production cuts. Photo: Kazatomprom

Kazatomprom, Kazakhstan’s state-owned uranium production company, will continue “flexing down” production by 20 percent through 2022, compared to the planned levels under subsoil use contracts, the company announced last week. It will also maintain its 20 percent reduction against subsoil use contracts in 2021, with no additional production planned to replace volumes lost in 2020 due to measures taken to combat COVID-19.

Kazatomprom does not expect to return to full subsoil use contract production levels until a sustained market recovery is evident and demand and supply conditions signal a need for more uranium, the company noted.

Sen. John Barrasso (R., Wyo.) authored an op-ed that was published in the Casper Star Tribune this week on the importance of rebuilding domestic uranium production. The article was published on the heels of a draft Senate bill, the American Nuclear Infrastructure Act of 2020, that was released on July 29.

A Virginia circuit court judge has upheld the state’s 38-year-old moratorium on uranium mining, rejecting Virginia Uranium Inc.’s (VUI) argument that the ban was an unconstitutional violation of the company’s rights regarding its Coles Hill property. On July 27, Judge Chadwick Dotson ruled in the state’s favor, declaring that while the mining prohibition does amount to a taking or damaging of private property within the meaning of the state constitution, Virginia had a compelling interest to do so.

Uranium producers around the world have suffered through years of record low uranium prices. In 2019 the United States recorded its lowest total uranium production—174,000 lb U3O8—since the U.S. Energy Information Administration began collecting data in 1949, according to the agency’s Today in Energy analysis of July 17.

U.S. uranium producers asked the federal government to come to their aid in January 2018, and President Donald Trump created the U.S. Nuclear Fuel Working Group (NFWG) in July 2019. While the NFWG issued a report in April 2020 recommending support for the front end of the nuclear fuel cycle, uranium producers are in a waiting game once again as the U.S. House of Representatives works on Fiscal Year 2021 appropriations legislation.

Brouillette

The long-awaited report from the Trump administration’s Nuclear Fuel Working Group promises immediate support for the front end of the nuclear fuel cycle, but it doesn’t stop there. “This is a road map for what we think needs to be done to not only revitalize, but reestablish American leadership for this entire industry,” said Energy Secretary Dan Brouillette as he introduced the report during a press call on April 23.