section232 update?, page-3

Ur-Energy Inc. & Energy Fuels Inc. are pleased that on April 14th the U.S. Department of Commerce (“DOC” submitted a report to the White House on the DOC’s investigation into the effects of uranium imports on U.S. national security. The President now has up to 90 days from April 14 to act on the DOC’s recommendations. We have not seen the DOC report, which is expected to remain confidential, but we believe the facts are clear. Uranium imports, increasingly from State-owned enterprises in adversarial countries like Russia and its allies, created a stark national security crisis. More than 60% of newly mined uranium around the world now comes from State-owned enterprises that unfriendly nations control. The once robust American uranium mining industry is disappearing because a flood of state-subsidized imports has made fair competition impossible. The U.S. is the world’s largest consumer of uranium. It is a vital element in the fuel for our nuclear Navy and the nuclear power plants that provide 20% of our electricity and nearly 60% of our clean, carbon-free electricity. Yet, in 2019, our domestic industry is expected to produce less than 1% of the uranium U.S. utilities need to generate electricity. The rest will come from other countries and increasingly from our adversaries. While uranium imports from our adversaries increase, production from our allies is plummeting. Uranium mining companies in other free market countries like Canada & Australia are also suffering because of state-subsidized production. Only one mine still operates today in Canada and production in Australia is declining. The world knows that Russia weaponizes its natural resources and energy industries. We must not allow the U.S. to be a target for Russia’s geopolitical warfare by placing 20% of our electricity in the hands of oligarchs and state officials who wish to diminish American influence and power. Meanwhile, China is purchasing uranium mines around the world that were previously reliable, free market suppliers. China National Uranium Corporation is purchasing the Rössing mine, meaning that China will dominate uranium production in Namibia, a historic and important supplier to the U.S. In the Petition, we propose that President Trump implement two common-sense remedies that will preserve U.S. national security and help the domestic uranium mining industry recover. This includes a quota that, in effect, reserves 25% of the domestic market for U.S.-mined uranium and a “Buy American” policy for U.S. government entities that use uranium. We believe that President Trump will recognize the danger of imported uranium and act before it is too late.