US Senate Passes Bill Banning Russian Uranium Imports, Wyoming Positioned to Fill Gap

The US Senate has unanimously passed a bill to prohibit the importation of Russian uranium, escalating measures against Russia amid its ongoing war against Ukraine. The decision aims to cut off a crucial revenue stream for Russia by banning imports 90 days post-enactment, with waivers available in case US nuclear reactors face supply challenges.

This legislation also includes the allocation of a previously approved US$2.7 billion (A$4.2 billion) to bolster the US domestic uranium processing sector. The bill is expected to be signed into law by President Joe Biden and is part of recent US efforts to support Ukraine, including a significant foreign aid package.

The ban on Russian uranium imports is part of broader sanctions that began with a prohibition on Russian oil imports shortly after the invasion of Ukraine in February 2022, along with a price cap on Russian crude exports. A National Security Council spokesperson emphasized the strategic importance of Congress enforcing this ban.

Demand for uranium, a critical component of the green energy mix, is rapidly increasing. With US nuclear facilities importing approximately 12% of their uranium from Russia in 2022, the ban has the potential to disrupt much-needed supply.

Wyoming, known for its premier uranium and mining jurisdiction, is poised to fill the gap left by the prohibition on Russian imports. Senator John Barrasso, a Republican on the Senate Energy Committee, suggested that uranium from Wyoming, which boasts the largest known uranium ore reserves in the US, could substitute for Russian imports and support American uranium production and the nuclear fuel supply chain.

Importantly, Wyoming’s uranium deposits are conducive to In Situ Recovery (ISR) mining, a low-cost method with minimal surface impact, which has been commercially practiced in the state since the mid-1980s.

In light of Wyoming’s potential to meet the supply needs created by the ban on Russian imports, several ASX-listed companies with uranium projects in the state stand to benefit. Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF), for example, is advancing its Lance Project in Wyoming, one of the largest uranium projects in the US. The company is transitioning to a low-cost and environmentally friendly ISR operation to position itself as a key player in the US uranium market.

Similarly, GTI Energy Ltd (ASX:GTR, OTC:GTRIF), another ASX-listed Wyoming uranium company, is focused on exploring, defining, and developing economic ISR uranium resources in the state. The company’s activities include a drilling program at the Lo Herma Project to extend and upgrade mineral resources, as well as planned drilling at the Green Mountain project to validate historical data and mineralized regions.

While the US ban on Russian uranium imports is a short-term measure, it underscores the growing importance of diversified commodity supply chains. This shift away from reliance on Russian uranium presents an opportunity for uranium companies in stable jurisdictions like Australia.

Alligator Energy Ltd (ASX:AGE, OTC:ALGEF), for instance, is developing the Samphire Uranium Project in South Australia, showcasing a sizable uranium resource with potential for expansion. The company’s strong environmental, social, and governance (ESG) credentials, along with its development plans, position it favorably in the competitive uranium market.

Overall, the US Senate’s decision to ban Russian uranium imports has significant implications for the global uranium industry, with companies in jurisdictions like Wyoming and Australia poised to capitalize on the changing supply landscape.