On August 13, US-based Uranium Energy Corp (UEC) announced resuming uranium production at its Christensen Ranch site in Wyoming. However, UEC was already operational in Mine Unit 10 at Christensen Ranch from a week back. The company expects a surge in uranium levels after a certain period, even though the initial uranium concentrations are good enough. But can the mining giant maintain its decarbonization goals amid the anticipated production spike?
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Disseminated on behalf of Uranium Royalty Corp.
NASDAQ’s Sole Uranium Focused Royalty Company.
The company is Uranium Royalty Corp., trading as (NASDAQ: UROY, TSX: URC), holding a strong portfolio includes strategic acquisitions in uranium interests with royalties, streams, equity in uranium companies, and physical uranium trading. Their strategic approach aims to support cleaner, carbon-free nuclear energy while fostering long-term relationships based on sustainability principles.
Learn about the company’s portfolio of royalty assets and uranium holdings >>
UEC Achieves Key Milestones for Uranium Production Ramp-Up
UEC has prepped up all for the smooth ramp-up of uranium production at its Irigaray Central Processing Plant and Christensen Ranch. Last year, UEC carried out extensive redevelopments at the Christensen Ranch. Subsequently, the uranium recovered from Christensen Ranch will be processed at the Irigaray plant which is located 15 miles northwest of the actual site.
The Irigaray plant, licensed to produce 2.5 million pounds of U3O8 annually, may soon increase its capacity to 4.0 million pounds. However, its regulatory approval is pending.
Another stark feature of this plant is that it’s the hub of UEC’s Wyoming “hub-and-spoke project”, which includes 11 satellite ISL projects, four fully permitted. They expect the first shipment of uranium to be in November or December of this year.
Donna Wichers, Vice President of Wyoming Operations
“The Christensen Ranch ISL Mine has successfully restarted and we are in full growth mode with initial recoveries from Mine Unit 10 to be followed with Mine Units 7 and 8 in the coming months,”
She further explained that UEC has drilled, cased, and completed 55 wellfield patterns to extend Mine Unit 10 but production will start next year. Significantly, additional production growth is underway with delineation drilling and monitoring well planning at Mine Unit 11.
Here’s an image of Christensen Ranch satellite plant exterior
source: UEC
Christensen Ranch Revival: Can UEC Break Free from Russian Uranium Dependence?
Uranium Energy Corp President and CEO Amir Adnani highlighted the increasing demand for regional uranium, supporting U.S. national security needs. With uranium prices rising and Russian imports cut off, UEC has accelerated its production readiness to meet the demand surge for domestic uranium.
From previous media reports, we discovered that UEC acquired the Irigaray plant and associated orebodies, including Christensen Ranch, in 2021. It was made through the purchase of Uranium One Americas Inc. from Russian state-owned Rosatom. The Willow Creek project, which includes both Christensen Ranch and the Irigaray plant, has been on standby mode since 2018. Thus, reviving the site became a necessity.
This acquisition secured key assets, making UEC the largest fully permitted, low-cost ISL resource base among U.S. producers. Since then, the uranium giant has maintained its core infrastructure, including wellfields and the satellite ion exchange plant, to enable a quick restart.
Amir Adnani added,
“I am very proud of the Wyoming team who have executed as planned to achieve the restart of production. This is the moment we have been working towards for over a decade, having acquired and further developed leading US and Canadian assets with an exceptional, deeply experienced operations team. Global uranium market fundamentals are solid, with prospects for extraordinary growth in nuclear power and uranium demand.”
We can infer that UEC’s latest uranium effort directly supports the “Prohibiting Russian Uranium Imports Act.” Once the steady supply begins, it will position America to meet global uranium demand and gain a competitive edge.
READ MORE: Fulcrum Metals and Terra Balcanica Forge Deal to Explore Uranium in Canada
Wyoming’s Uranium Capacity
Going back to April 2022, UEC reported over 69 million pounds of U3O8 in mineral resources across its Wyoming hub-and-spoke uranium ISL project. Notably, it is the largest S-K 1300 Compliant ISR Uranium Resource Base in the United States
The project encompasses several areas, including Irigaray, Christensen Ranch, Moore Ranch, Reno Creek, Ludeman, Allemand-Ross, Barge, and Jab/West Jab. The mining company reported that its Wyoming projects have:
- Total Measured and Indicated resources disclosed in Wyoming projects are 66,198,200 lbs. with 58,460,000 tons with an average portfolio grade of 0.057% eU3O8.
- Total Inferred resources disclosed in Wyoming projects are 15,053,700 lbs. with 10,859,000 tons with an average portfolio grade of 0.069% eU3O8.
data source: Uranium Energy Corp press release
A MESSAGE FROM URANIUM ROYALY CORP.
[Disseminated on behalf of Uranium Royalty Corp.]
NASDAQ’s Sole Uranium Focused Royalty Company
The company is Uranium Royalty Corp., trading as (NASDAQ: UROY, TSX: URC), holding a strong portfolio includes strategic acquisitions in uranium interests with royalties, streams, equity in uranium companies, and physical uranium trading. Their strategic approach aims to support cleaner, carbon-free nuclear energy while fostering long-term relationships based on sustainability principles.
Learn about the company’s portfolio of royalty assets and uranium holdings >>
UEC’s Commitment to Nuclear Energy and Decarbonization
Nuclear energy is crucial for the transition to a low-carbon economy. Thus, UEC is scaling operations to meet rising nuclear energy demand in the U.S. and globally. Most importantly, it aims for net-zero emissions at its ISR facilities in Texas and Wyoming.
As a leading uranium supplier, UEC is well-positioned to support the shift from fossil fuels to clean energy. Its latest objectives include developing a decarbonization strategy for Wyoming and setting emission reduction targets for Scope 1 and 2 emissions. The company also wants to conduct a Scope 3 emissions study for Texas operations.
Looking back, UEC has a robust emission reduction strategy in place for its Texas facilities. Despite a slight increase in emissions due to activity at Burke Hollow, UEC continues to invest in carbon offset programs. It covered 2,712 t CO2e last year and is actively working toward further reducing its carbon footprint.
We discovered from its sustainability report that, UEC has invested in the A-Gas Voluntary Emission Reduction Program in Texas. This project mitigates over 1MMT of GHG emissions annually by preventing harmful hydrofluorocarbons (HFCs) from entering the atmosphere. HFCs cause far more environmental damage than CO2.
- Cut Scope 1 emissions (about 22% during production) with carbon capture, recycling, and electric vehicles.
- Lower Scope 2 emissions (around 78% during production) by using renewable energy and boosting energy efficiency.
source: UEC
Amir Adnani further noted,
“There has been a step-change across the globe with an increasing number of countries adopting plans and programs to restart, extend the life of and or build new nuclear plants in the quest for clean, safe, highly reliable and cost-effective electricity that nuclear power provides.”
The picture is clear, which means UEC’s uranium targets and emission reduction goals will drive a successful transition. All in all, they will also help establish a secure and independent nuclear fuel supply chain in the U.S. in the coming years.