After difficult uranium markets in 2016 and 2017, positive changes are being initiated to the benefit of the industry. The announced uranium production cuts from the world’s two largest producers, Kazatomprom and Cameco, were implemented starting this month. Furthermore in the United States, a Section 232 Petition was recently submitted to the Department of Commerce with the goal of initiating an evaluation of the U.S. national security impact caused by growing dependence on uranium imports. The petition is seeking to reserve about 25% or 12 million pounds of uranium yearly for domestic uranium production which represents a substantial increase to current domestic transaction levels. This initiative is being acknowledged as important by the U.S. legislature due to the strategic security issues derived from a dependence upon uranium supply from Russia and Kazakhstan, while the investor market is increasingly recognizing a fundamental positive shift is underway in the sector.
In addition to these positive uranium sector dynamics, the Company is now receiving interest from vanadium buyers in securing a consistent source of vanadium pentoxide from the Company’s mines. This market is increasingly in supply deficit. Western is interested in negotiating a longer-term vanadium contract beyond the 12-month period that has historically typified vanadium contracting.
Western will continue to work toward moving the Sunday Mine Complex forward for the production of uranium and vanadium and doing so at a low cost through the implementation of ablation mining technology.
For compamny information, see: www.western-uranium.com
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