From the Desk of Amir Adnani: www.uec.com
The Russian National Parliament (Duma) has introduced a draft law in the response to US sanctions that is likely to impact the uranium and titanium markets. Ivan Melnikov, first deputy speaker of the Duma, said on Friday that the draft law calls for stopping international cooperation in the nuclear and aircraft industries, not only with the US, but also in “other foreign states” who support US sanctions against Russia and “those who support Washington’s position on Syria.”
If the draft law is approved by the Kremlin (it could be considered and potentially adopted during the next Duma session next week), the US utility industry may be in for a major supply shock as a result of their over-dependence on uranium coming from countries under the Russian sphere of influence. The US generates about 20% of its electricity from nuclear power, and imports about 40% of its uranium requirements from Russia, Kazakhstan, and Uzbekistan. The titanium market is also likely to be affected if the law comes to pass with a halt of titanium exports to the US and other countries aligned with US interests.
The titanium market has already seen a significant upward movement of prices across the mineral sands space as a result of firm demand and systemic supply constraints. Many existing titanium orebodies are reaching maturity and feedstock suppliers are continuing to experience lower grade and dwindling supply. In addition to the possible supply shock of Russia halting titanium exports to the US and other countries supporting US positions, Rio Tinto shut down its Richards Bay mineral sands operation in South Africa in late March in a labor dispute. Richards Bay produces about 25% of global titanium feedstock.
We’ll keep you posted in the coming weeks on uranium and titanium as news develops. Let me know if you have any questions on the latest with UEC’s US ISR projects and our plans in 2018 and/or our Alto Parana titanium deposit.
URANIUM ENERGY CORP
NYSE AMERICAN: UEC | www.uraniumenergy.com