Good news for Uranium: U.S. Department of Energy (DOE) Announces Large Cut in Uranium Transfers
On April 26, 2017, President Trump’s new Energy Secretary, Rick Perry, signed a determination that cuts expected DOE uranium transfers by 37% in 2017 and 47% in 2018, action supporting the U.S. uranium industry for the first time in eight years. Since 2009, the DOE has placed over 40 million lbs. of uranium into the market, including approximately 7 million lbs. per year in 2012 – 2014, 6.5 million lbs. in 2015, and 5.5 million lbs. in 2016.
The move by Secretary Perry limits transfers to a maximum of 3.4 million lbs. of uranium in 2017, and to a maximum of 3.0 million lbs. of uranium in 2018. Further, the DOE has already placed about 1.4 million lbs. into the market in 2017, meaning that only 2.0 million lbs. will enter the market for the remainder of the year.
The DOE cutting transfers by 2.1 – 2.5 million lbs. of uranium is constructive news for uranium producers, as it comes on the heels of Kazakhstan announcing production cuts in 2017 of 5.0 million lbs. and several other companies, including Cameco, announcing production cuts.
UxC Uranium U3O8 Futures Quotes cmegroup.com |
