Peninsula Energy Limited (ASX: PEN) has welcomed a new report which the company believes will support its uranium mining activities in the USA.
The company said the Nuclear Fuel Working Group’s (NFWG) strategy report, released by the US Secretary of Energy Dan Brouillette, recognises that US national security is truly integrated with the health of the front-end of the nuclear fuel cycle.
Managing Director and CEO, Wayne Heili, said the report outlines a comprehensive whole-of- government strategy of actions that could revive the capabilities of the uranium mining, milling and conversion industries in support of the entire US nuclear industry.
He added that as and when implemented, the recommendations of the NFWG are expected to provide an immediate boost to US uranium producers such as Peninsula through supply agreements with the DOE. The policy recommendations would contribute significantly to the long-term health of the industry.
This looks to be a very good outcome for Peninsula and all US uranium producers,” Mr Heili said.
“As an initial step, the President’s FY2021 budget request for the DOE includes US$150 million per annum for the next 10 years for the purchase and development of a Uranium Reserve programme.
“The DOE would purchase uranium from domestic uranium producers to develop a strategic stockpile that would be available for nuclear power operators in the event of a nuclear fuel market disruption.
“Based on the report recommendations, this would mean purchases of 17 to 19 million pounds of freshly mined uranium supplied by US producers including Peninsula.
“Peninsula is in an excellent position to rapidly re-start production from our two fully-developed mine units at our flagship Lance Project, using the low pH method, to supply these needs.”
Among the key recommendations from the NFWG strategy are:
- Direct purchases of uranium and nuclear fuel services to expand five-fold the American Assured Fuel Supply strategic inventory stockpile
- Purchasing 17 to 19 million pounds over a 10-year period of US produced U3O8 beginning no later than 2020
- Streamlined regulatory reform and land access for uranium production
- Enable the Nuclear Regulatory Commission to deny imports of nuclear fuel fabricated in Russia or China for national security purposes
- Support Federal Energy Regulation Commission (FERC) actions to encourage competition in energy wholesale markets.
