RE:Fox NewsBased on the tweets and comments being made - it seems the US Gov't is doing some early preparing of the media/public/business world for at least a quota system requiring a minimum level of domestic production and possibly a tarrif on Uranium imports.
I am not sure on how this will affect FC as a Canadian company. We are a FOREIGN producer with a Chinese partner (albeit a minory partner at this point - As Canada does not allow over 50% foreign ownership of our U companies).
So, will that help FCU because SPOT and futures contract prices likely to rise after 232 one way or another, OR - because FCU is Canadian - will it hurt because it reduces amount of American demand for Canadian U. Even with a 25% domestic quota - that leaves a lot of Uranium that the US requires that foreign sellers can supply - so I think any negativity would be temporary and it will take some time before US is producing to 25% levels. I just don't understand why US wouldn't exclude non-NATO countries or obvious "Cold War" / Political ideological rivals - instead of cutting off Canadian, Australian, or other allied providers.....Exclude Russia and Khazaks entirely from US uranium suppliers if you are TRULY worried about security - since that is basically the "block" you have an arms race with and idealogical/political differences. Canada is so "soft" though it is easy to throw Canadian interests out with the bathwater even though the idea that Canadian supplied Uranium could be in any way a security risk relative to other countries is kind of absurd.
Then, what about Cameco which is a Canadian company with US assets that produce U - will that count?.
I wish the US gov't would allow unlimited import from NATO countries or obvious allies - as otherwise this is another item that isn't really part of "Free Trade" but I do get arguments - because energy and especially Uranium since it can be weaponized - IS a security item for sure. Then again if Canada isn't the most direct US ally I don't know who is...?
On the other hand,I do like that US Gov't is reinterested in Nuclear - I think that will be key to energy needs that won't further damage environment and push more climate change, etc... That is a net positive for "clean" energy and nuclear/uranium for next decades.
Will be interesting - but I think Canada has more to lose than some countries - so I worry that - short term 232 could be a negative. We will see.