Energy Fuels, Navajo OK uranium ore transport

Energy Fuels' Pinyon Plain mine in Arizona. Credit: Energy Fuels

Energy Fuels (TSX: EFR; NYSE: UUUU), one of America’s largest uranium producers, has reached an agreement with the Navajo Nation to resume radioactive ore transport across the Indigenous community’s lands.

Ore trucked from Energy Fuels’ Pinyon Plain mine in northern Arizona to the company’s White Mesa Mill in southern Utah is now expected to resume next month, the Denver-based company said in a statement. Energy Fuels will also help the Navajo Nation in the cleanup of abandoned uranium mines resulting from old U.S. government programs.

“This agreement is a positive development,” Toronto-based Red Cloud Securities said in a note on Thursday. “Although Energy Fuels has been transporting radioactive material safely since 2007, these additional steps should help build trust with local communities.”

The deal ends a dispute that flared up last year when Energy Fuels started sending ore from the mine to its Utah mill. Negotiations over the accord began in August after the company voluntarily halted shipments.

“The Navajo Nation has suffered longstanding impacts from uranium mining conducted during the Cold War era, resulting in numerous abandoned mine and mill sites on their lands,” Energy Fuels’ president and CEO Mark Chalmers said in the release. “This has understandably caused mistrust toward the U.S. government and energy companies.”

Exceeds rules

The deal contains additional protections and accommodations over and above current U.S. Department of Transportation requirements.

Measures include limiting transportation to specified routes and hours of the day; not transporting ore on days involving celebrations or public events in respect of the Navajo Nation’s culture and traditions; and clearly spelled out emergency response procedures, notice and reporting requirements.

Pinyon Plain, the highest-grade conventional mine in the U.S., forms a key part of Energy Fuels’ uranium production plans, SCP Research analyst Justin Chan said in a note to clients. He called the deal a “win-win” for Energy Fuels, saying that a mutual agreement was “best for long-term stability.”

Energy Fuels has also agreed to accept and carry, at no cost to the Nation, up to 10,000 tons of uranium-bearing cleanup materials from abandoned uranium mines on Navajo lands. The materials constitute a “relic” of old U.S. government uranium programs that began in the 1940s and did not involve Energy Fuels, the company said.

Navajo inspections

“We have a settlement agreement that will allow the Navajo Nation to monitor and inspect the haul trucks and that provides financial compensation for the expenses to improve safety and protect the environment,” Stephen B. Etsitty, executive director of the Navajo Nation Environmental Protection Agency, said in the same release.

“The Navajo Nation appreciates the support from Arizona Governor Katie Hobbs who facilitated the pause in transport activities which helped the Navajo Nation and Energy Fuels conduct the negotiations.”

The deal “marks an important step forward for our communities and shows what is possible through collaboration, partnership, and a shared commitment to public safety,” Hobbs said. “This agreement isn’t just about resolving a conflict; it’s a commitment to protecting future generations, respecting Tribal sovereignty and ensuring that all voices are heard and valued.”

Denver-based Energy Fuels will process the ore from Pinyon Plain at the White Mesa Mill into natural uranium concentrates, which are used in the production of nuclear energy. The mining and milling of “natural uranium” represent the first steps in the nuclear fuel cycle for producing zero-emission energy to the U.S. electric grid.

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