So Biden last week declared 1 million acres of Uranium rich land in Arizona to be a national monument--thereby removing it from mining. This seemed, on its face, a stupid move considering the need to decouple from Russian Uranium (single largest producer and exporter), and considering the recent coup in Niger and the need to derisk from certain other foreign Uranium producing countries.
What could be going on? Why would a move be made like that, which is clearly self destructive and counter productive to the energy transition, and jeopardizes American access to readily available Uranium?
One conspiracy theory is that this is to ensure a rise in Uranium prices, which will allow American Uranium companies to become profitable and self sustaining. The theory is that this political move has the effect--paired with the Russian uranium ban legislation coming out of congress-- of artificially inflating the price of Uranium.
The theory continues that the Supreme Court may challenge Biden's use of the Antiquities Act to declare the National Monument, and reverse this Uranium restriction at a later date.
We shall see...
But, in any event, Ucore could certainly profit from these circumstances. Dragon had once asked me which company I thought should partner with Ucore to lease or buy it's Uranium deposit. Well, Dragon, I am begining to think that Energy Fuels would be a good partner. For one thing, Energy Fuels has Uranium processing capabilities. But for another, Energy Fuels has recently gotten into the rare earth concentrate business, and Ucore could be a good offtake partner for its rare earth concentrates.
We would take their concentrates and refine them into oxides; they would take our Uranium, and make it into a fuel grade. Win-win.
Well Dragon, what say you?
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