The US used to be the world's powerhouse when it came to uranium production. From 1953 until the early 1980s the country dominated global production, by far, but then lower uranium prices resulted in mining shutdowns.
Overall, the uranium deposits in the US are lower grade and more expensive to mine. This resulted in the country losing a big chunk of its market share to other countries including Australia and China when lower uranium prices pinched margins. Furthermore, a few environmental issues resulted in some uranium mining bans. Now, however; local governments and uranium companies are pushing to be allowed to increase their uranium exploration, even in regions where bans are in place.
Officials in Arizona and Utah are urging the Trump administration to consider rolling back the Obama-era environmental protections that ban new uranium mining near the Grand Canyon, saying that they stifle economic growth. But, supporters of the ban say new mining could result in uranium-contaminated water flowing into the canyon.
Another example, in early May, the Environmental Protection Agency hosted public hearings to discuss two permit applications from Powertech USA for uranium mining in the Dakotas. The company wants to extract uranium from portions of the Inyan Kara aquifers.
Uranium mining and nuclear power are two controversial topics. Right now, uranium market participants have a unanimous opinion that we will soon enter a period of rapidly growing nuclear power demand. This will mean that uranium demand will also skyrocket. While uranium prices are currently depressed due to a market oversupply, as new nuclear power plants open up these stockpiles will be used up. Further out, the closure of aging mines will reduce supply and new supply will be needed to meet demand.
In order to capitalize on this pending rally, now is the time to start exploring. But, the US is not the only country where uranium exploration is increasing; therefore, there are no guarantees that the country will once again dominate the uranium supply chain.