{"id":1126695,"date":"2019-07-15T10:00:46","date_gmt":"2019-07-15T15:00:46","guid":{"rendered":"https:\/\/www.mining.com\/?p=996631"},"modified":"2019-07-15T10:00:46","modified_gmt":"2019-07-15T15:00:46","slug":"trumps-rejection-of-uranium-import-limits-expected-to-boost-demand","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1126695","title":{"rendered":"Trump\u2019s rejection of uranium import limits expected to boost demand"},"content":{"rendered":"<p>Uranium is believed to be on its way to recovery after years of low prices triggered by weak demand and a global supply glut after US President Donald Trump&nbsp;declared over the weekend that yellow cake imports&nbsp;did not threaten to impair the country\u2019s national security.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>As a result, he said his administration won\u2019t impose fresh quotas on foreign shipments of the metal.<\/p>\n<p>Trump\u2019s move goes against the advice of the US commerce department, which said the country show required utilities to procure 25% of uranium from domestic sources. According to official data, Washington currently imports 93% the nation commercial needs, up from 86% a decade ago. <\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Instead of imposing tariffs or quotas on uranium imports, he&#8217;s ordered a 90-day review of the entire nuclear supply chain to identify ways to revive and expand domestic production<\/p>\n<\/blockquote>\n<\/figure>\n<p>Trump has also ordered a 90-day review of the entire nuclear supply chain to identify ways to revive and expand domestic production of the commodity. <\/p>\n<p>The \u201c232 resolution\u201d, a reference to a section of the 1962<br \/>\nTrade Act that enables barriers or tariffs to be erected against imports<br \/>\nregarded as a threat to national security, is expected to increase uranium<br \/>\nmarket activity.<\/p>\n<p>The sector has been suppressed since the 2011 Fukushima<br \/>\ndisaster, which led big buyers including Japan and Germany to shut nuclear plants<br \/>\nand cancel plans to build new ones.<\/p>\n<p>The market faced further pressure later, as a result of a subsequent<br \/>\nsupply glut, partly caused by world\u2019s largest uranium producer, Kazakhstan to<br \/>\ncut back output in 2017. Such decision was soon emulated by Canada\u2019s Cameco (TSX:CCO)<br \/>\n(NYSE:CCJ), North America\u2019s top supplier.<\/p>\n<p>Dropping a quota &#8220;is certainly the best outcome for the<br \/>\nwider uranium industry and non-US uranium stocks,\u201d BMO Metals analyst said in a<br \/>\nnote to investors. \u201cHowever, a United States Nuclear Fuel Working Group has<br \/>\nbeen set up which has 90 days to submit a report that reviews the entire<br \/>\ndomestic nuclear supply chain and is expected to provide recommendations for<br \/>\nreviving and expanding domestic nuclear fuel production &#8220;if needed,\u201d Colin<br \/>\nHamilton and Alexander Pearce noted.<\/p>\n<p>&#8220;By not supporting quotas, President Trump is potentially avoiding a situation that would have seen higher cost uranium production being encouraged into a market that is already more than adequately supplied,&#8221; TD Securities analysts wrote.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/07\/where-us-reactors-get-their-uranium-1024x578.png\" alt=\"\" class=\"wp-image-996635\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/07\/where-us-reactors-get-their-uranium-1024x578.png 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/07\/where-us-reactors-get-their-uranium-300x169.png 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/07\/where-us-reactors-get-their-uranium-768x433.png 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/07\/where-us-reactors-get-their-uranium.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<p>Companies including <a href=\"https:\/\/finance.yahoo.com\/news\/positive-resolution-section-232-trade-110000979.html\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Namibia-focused Bannerman Resources<\/a> (ASX:BMN) believe Trump\u2019s move will enhance activity from utilities, traders, producer-buyers and speculators during the remainder of 2019 as a result of the partial hiatus in a number of uranium market operations.<\/p>\n<p>Cameco, in turn, has confirmed its intention to resume spot purchasing in order to meet term contract delivery obligations that it must fill after placing its flagship McArthur River mine, the world\u2019s biggest uranium operation, <a href=\"https:\/\/www.mining.com\/weak-uranium-prices-force-cameco-to-halt-two-operations-in-canada\/3233\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">on care and maintenance<\/a>.&nbsp;<\/p>\n<p>\u201cAs a long-term commercial producer, employer, supplier and investor in the US uranium and nuclear energy sectors, we want to see this industry succeed and grow,\u201d <a href=\"https:\/\/www.cameco.com\/media\/news\/cameco-pleased-with-section-232-decision-on-u.s.-uranium-imports\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">said the company\u2019s president and CEO<\/a>,&nbsp;Tim Gitzel.<\/p>\n<p>Uranium fund Yellow Cake, which has uranium holdings of nearly 10 million pounds for the period ended March 31, also expects activity in the market to pick up soon. <\/p>\n<p>\u201cWe expect a more measured return to market activity in the near term and remain highly confident in the long-term price outlook for uranium, and therefore in the Yellow Cake investment model,&#8221; chief executive, Andre&nbsp;Liebenberg,&nbsp;said in <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.yellowcakeplc.com\/wp-content\/uploads\/2019\/07\/2019.07.15-232-Decision-Statement.pdf\" >a statement on Monday<\/a>.<\/p>\n<p>Currently, the global nuclear power industry gets nearly all of its uranium from sources such as Australia, Canada, Kazakhstan and Russia.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>He has rejected a recommendation by the Commerce Department to require US power producers to source up to 25% of their uranium from domestic mines, creating instead a working group to review the country&rsquo;s nuclear fuel supply chain.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1126695"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1126695"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1126695\/revisions"}],"predecessor-version":[{"id":1126696,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1126695\/revisions\/1126696"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1126695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1126695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1126695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}