Uranium import probe threatens U.S. nuclear power industry -group (updated)
27/09/2018 24:07
(Adds comments from Ur-Energy and Energy Fuels)
Sept 26 (Reuters) - U.S. nuclear power generators urged the
federal government against taking action in a dispute over
imported uranium, arguing tariffs or quotas would increase costs
for the struggling industry and possibly cause some reactors to
shut, according to a statement emailed on Wednesday.
The U.S. Department of Commerce (DOC) launched a "Section
232" investigation into uranium imports in July following
complaints by two U.S. uranium mining companies, Ur-Energy Inc
URG.A and Energy Fuels Inc UUUU.A , that subsidized foreign
competitors have caused them to cut capacity and lay off
workers. urn:newsml:reuters.com:*:nL1N1UE0S2
The move is a double-edged sword for President Donald Trump.
While it helps domestic uranium producers by targeting
importers, it undercuts the administration's efforts to give a
boost to U.S. nuclear power operators, who would see their fuel
costs increase.
"Imposing additional regulatory burdens on the already
struggling nuclear energy industry will put 100,000 good paying
domestic jobs and careers at risk and is inconsistent with
President Trump's and the Department of Energy's policy
pronouncements," David Tamasi, spokesperson for nuclear group,
called the Ad Hoc Utilities Group (AHUG), said in a statement.
The White House has been trying to find a way to prevent
additional coal and nuclear plants from shutting, which the
administration sees as vital for national energy security, as
they struggle to compete with cheaper alternatives like natural
gas and renewable generation. urn:newsml:reuters.com:*:nL2N1T30Z9 urn:newsml:reuters.com:*:nL1N1UQ0TG
urn:newsml:reuters.com:*:nL1N1UQ0TF
Uranium is used in the U.S. nuclear arsenal and powers the
Navy's nuclear aircraft carriers and submarines, along with 98
U.S. commercial nuclear reactors that produce 20 percent of the
electricity consumed in the country.
The nuclear industry said a diverse uranium supply is
essential to keep that power flowing.
In 2017, about 58 percent of the U.S. uranium supply came
from the United States, Canada and Australia, with the rest
coming from Russia (16 percent), Kazakhstan (11 percent),
Uzbekistan (5 percent), Namibia (5 percent), South Africa (2
percent) and Niger (2 percent), according to the nuclear power
group.
"If the U.S. uranium mining industry does not survive, we
will essentially hand over to unfriendly countries control of
our nuclear sector," Jeffrey Klenda, president and CEO at
Ur-Energy, and Mark Chalmers, president and CEO at Energy Fuels,
said in a joint statement.
"The DOC investigation represents a significant step toward
protecting our national and energy security," the two company
executives said in the statement.
The investigation, which the Commerce Department said on
Wednesday is still ongoing, is one of several launched by the
Trump administration under Section 232 of the Trade Expansion
Act of 1962, previously a seldom-invoked Cold War-era law.
Probes on steel and aluminum imports have led to tariffs and
quotas on the metals, prompting retaliation from trading
partners including Canada, Mexico and the European Union.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
UPDATE 1-U.S. Commerce launches national security probe into
uranium imports urn:newsml:reuters.com:*:nL1N1UE0S2
UPDATE 3-Trump throws ailing U.S. coal, nuke plants a lifeline,
triggers backlash urn:newsml:reuters.com:*:nL2N1T30Z9
FACTBOX-U.S. nuclear reactor retirement calendar
urn:newsml:reuters.com:*:nL1N1UQ0TG
FACTBOX-U.S. nuclear reactors facing possible shutdown
urn:newsml:reuters.com:*:nL1N1UQ0TF
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(Reporting by Scott DiSavino in New York, additional reporting
by Swati Verma in Bengaluru; editing by Marguerita Choy and
Diane Craft)
((scott.disavino@thomsonreuters.com; +1-646-223-6072; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))