Utah uranium mine rushed by Trump, prices delay revival

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    In the southeastern Utah desert, known for its striking red rock arches and canyon mazes, there’s a renewed interest in reviving uranium mining under the administration of President Donald Trump. The industry, which had been largely inactive, is eyeing a comeback, with one mine moving forward after being fast-tracked for approval. Hundreds of abandoned uranium mines are scattered across the western U.S., remnants of the Cold War era’s nuclear power boom. One such mine, the Velvet-Wood, last active in the 1980s is being targeted for reopening after a swift approval process by federal regulators.

    The U.S. Bureau of Land Management traditionally takes extensive time to review such projects. However, under Trump’s declaration of a “national energy emergency,” the bureau fast-tracked Anfield Energy’s Velvet-Wood mine plans in just 11 days. Once more permits and approvals are in place and the uranium price becomes viable, the mine could see operations resume, potentially revitalizing the local economy that has been stagnant since the Reagan administration.

    According to Interior Secretary Doug Burgum, “President Trump has emphasized that energy security is equivalent to national security.” Consequently, the new procedures initiated in earlier 2023 reflect an aggressive approach towards reducing energy dependency by expediting project approvals. This policy applies across various energy sectors like oil, gas, coal, biofuels, and hydropower, excluding renewables.

    Currently, the backdrop for further domestic uranium mining appears favorable. Global uranium prices have doubled compared to their low seven years ago. Furthermore, in response to geopolitical tensions following Russia’s 2022 invasion of Ukraine, the U.S. has since banned uranium imports from Russia, amplifying the need for domestic production. With the U.S. importing around 98% of the uranium required for its nuclear energy needs, boosting domestic mining could address a significant supply imbalance.

    Notwithstanding the regulatory support, the uranium market remains a critical variable. Although prices have risen from their lows, they still trail below recent peaks. As John Uhrie, a former uranium executive, suggests, substantial price increases are necessary for a genuine revival of the mining industry. These economic realities dictate that until prices stabilize at a beneficial level, operationalizing mining sites remains unfeasible.

    Yet, there is a fledgling resurgence of activity in the Southwest. Anfield Energy, a Canadian firm, also intends to reopen another facility, the Shootaring Canyon uranium mill, which was closed in the early 1980s. This facility, alongside Energy Fuels’ operations, represents the nucleus of potential rebirth in the region. Energy Fuels has already made strides with the opening of the Pinyon Plain mine near the Grand Canyon at the end of 2023. Furthermore, their White Mesa mill in Utah stands as the last operational uranium mill in the country.

    Moab, Utah, while now more synonymous with tourism and outdoor pursuits, carries a rich uranium mining legacy. Historical echoes of the town’s past can be seen in places like the Atomic Hair Salon. Yet, the impact of past environmental missteps lingers, particularly through the Moab Uranium Mill Tailings Remedial Action project, which is expected to conclude within five years. Concerns remain among residents about the potential environmental consequences of renewed mining, exacerbated by reduced public oversight opportunities brought about by the current administration.

    Environmental groups such as Grand Canyon Trust remain skeptical of the urgent nature of these changes, arguing that the national nuclear industry already has stable access to the necessary resources. The future of uranium mining and its bearing on both local landscapes and the broader U.S. energy strategy continues to hang in the balance.

    Meanwhile, northern nuclear projects, including TerraPower’s innovative reactor plans in Wyoming, herald potential shifts in energy production. Notably, “in-situ” mining operations in Wyoming provide a modern take on uranium extraction, offering less invasive techniques by using wells instead of traditional mining methods.

    Still, Utah’s history of uranium remains largely marked by inactivity. Despite rising demands for electricity, particularly for sustainable technologies like electric vehicles and computing infrastructure, ensuring a domestic supply of nuclear fuel remains a challenge. With the production of yellowcake—processed uranium ore—on the rise but still staggeringly low compared to imports, it is clear that any substantial resurrection of the U.S. uranium industry from mining to processing would be complex and resource-intensive.

    In summary, while recent regulatory shifts and market conditions hint at a possible revival of uranium mining in the U.S., real transformation requires significant economic shifts alongside infrastructural developments in processing and enrichment capabilities. This landscape, though ripe with potential, remains tangled in both market and regulatory complexities.