Ur-Energy cuts costs after Trump declines to set uranium output quotas
06/08/2019 13:07
Aug 6 (Reuters) - Uranium miner Ur-Energy Inc URG.A said
on Tuesday it was forced to cut jobs and curb spending,
following President Donald Trump's decision last month to not
set quotas for domestic production.
Trump declined to issue quotas for domestic uranium
production in July and instead ordered a 90-day governmental
review, saying he did not concur with a Commerce Department
investigation that found uranium imports threaten to impair U.S.
national security.
Trump had also ordered a deeper review by the U.S. Nuclear
Fuel Working Group, with input from several government agencies.
U.S. uranium mining firms, as well as more than two dozen
western state lawmakers, have argued that nuclear generators
rely heavily on adversaries such as Russia, China and Kazakhstan
for uranium supply from their state-owned companies, who flood
the market.
Petitions from Colorado-based Energy Fuels Inc UUUU.A and
Ur-Energy had sought quotas requiring 25% of the U.S. uranium
market be sourced domestically.
Ur-Energy, which operates the Lost Creek uranium facility in
south-central Wyoming, said it "can no longer justify the added
cost of maintaining full operational readiness..."
The company said it cut 10 jobs in Wyoming and lowered its
production rates, while adding that it does not plan to spend on
development activities, moves that are expected to save $4
million annually.
Last week, Ur-Energy had cut its full-year production
numbers for Lost Creek to between 50,000 pounds and 75,000 from
its previous range of 75,000 and 100,000 pounds.
(Reporting by Arathy S Nair in Bengaluru; Editing by Anil
D'Silva)
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