① The US Department of Energy issued a request for proposals for uranium enrichment services, with the goal of producing “high-purity low-enriched uranium fuel” (HALEU); ② NexGen Energy, which is listed on the US stock market, closed more than 6%, and Australia's Paladin Energy and Deep Yellow also rose 10% and 6%, respectively.
Financial Services Association, January 10 (Editor: Zhao Hao) Global uranium miner stocks surged during the day, as the US government said on Tuesday (January 9) that it is seeking bids to boost domestic nuclear fuel production.
On the same day, the US Department of Energy issued a request for proposals for uranium enrichment services, with the goal of domestically producing “high-purity low-enriched uranium fuel” (HALEU), a key material needed to deploy advanced nuclear reactors. The Department of Energy said the move would improve America's energy security, create high-paying jobs, and enhance economic competitiveness.
In a press release, the US Department of Energy acknowledged that currently HALEU has not made commercial purchases from US suppliers and plans to invest 500 million US dollars in projects such as HALEU. According to data from the US Department of Energy, Russia provided the US with nearly a quarter of enriched uranium and is America's largest supplier of nuclear raw materials in 2022.
It is worth mentioning that last week the British government also announced that it will invest 300 million pounds to support the production of HALEU, making it the first European country to launch the HALEU program. According to the UK Department of Energy Security and Net Zero, the plan aims to break Russia's monopoly on HALEU and provide employment and investment in north-west England.
Benefiting from this news, NexGen Energy, which is listed on the US stock market, closed more than 6%, while Australia's Paladin Energy and Deep Yellow also rose 10% and 6%, respectively. Yellow Cake, which is listed in London, also reached a record high, continuing last year's 65% increase.
Last month, the US House of Representatives passed a bill prohibiting the US from importing Russian uranium for use in nuclear power plants. The bill still needs to be passed through the Senate and signed by the President before it can officially take effect.
However, if the Department of Energy finds that it is unable to find a suitable replacement supply, or if it is proven that importing enriched uranium from Russia is in the interests of the United States, the bill allows the Department of Energy to issue a temporary exemption until 2027.
Last month, it was reported that TENEX, which is part of Russia's International Atomic Energy Corporation, warned US customers that if the White House passes this legislation, the Kremlin may ban the export of their nuclear fuel earlier.
Against the backdrop of a global nuclear power revival and many production challenges, uranium prices have entered an upward trajectory after more than 10 years of consolidation. On Tuesday, futures for the New Zealand Stock Exchange tracking the physical market uranium raw material yellowcake (yellowcake) contract once hit a 15-year high.
John Ciampaglia (John Ciampaglia), CEO of Sprott Asset Management (Sprott Asset Management), said, “The global return to nuclear energy has brought opportunities and challenges. We need to rebuild the supply chain that disappeared.”
However, soaring development costs have put potential nuclear power producers in a precarious position. Previously, NuScale Power, the first supplier of small commercial nuclear reactors approved in the US, failed. The company cancelled plans to build the reactor two months ago and laid off more than a quarter of its employees this month.