Two major U.S. uranium producers, Ur-Energy and Energy Fuels Inc., have filed a petition with the Department of Commerce calling for a cap on imports that would preserve 25 percent of the domestic market for U.S. companies. The petition says that 40 percent of the U.S. market has been usurped by Kazakhstan, Russia and Uzbekistan and that China has said it would soon try to compete with U.S. and foreign companies for a share of the U.S. market.
At the root of the complaint, the U.S. concerns are pointing out that companies from these sources of nuclear fuel are state-owned and, therefore, unfairly subsidized by their governments. The companies also say that it is in the country's interest to maintain a presence in the market to preserve some semblance of energy independence. Allowing free market forces to wipe out U.S. uranium production would threaten U.S. energy security, chip away at the country's economic security and limit its options in weaponry, the complaint says.
The companies also note that uranium production in the United States dropped to “near historic” lows in 2017, the World Nuclear Association reported.
The petition also plays a political trump card, pun intended, noting that requiring U.S. utility companies to purchase 25 percent of their U308 from U.S. mining companies would fit into President Donald Trump's “Buy American” initiative.
Preserving 25 percent of the market for U.S. companies would result in “healthy” domestic mining industry, the companies said.