LAKEWOOD, Colo., June 10,
2024 /PRNewswire/ - Energy Fuels Inc. (NYSE
American: UUUU) (TSX: EFR) ("Energy Fuels" or the
"Company"), a leading U.S. producer of uranium, rare earth
elements ("REEs"), and vanadium, is pleased to announce that
it has achieved commercial production of separated
neodymium-praseodymium ("NdPr") at its White Mesa Mill in
Utah (the "Mill").
Critically, the NdPr produced by Energy Fuels' meets the applicable
product specifications of REE metal-makers, who specialize in the
manufacture of REE-based alloys required for the permanent magnets
widely used for electric motors in both battery powered electric
vehicles ("EVs") and dual power hybrids. Further, this
'on-spec' NdPr is now able to be produced by Energy Fuels at the
full design capacity of its new Phase 1 REE separation circuit (850
to 1,000 metric tons ("tonnes") of NdPr per year). The
Company expects to have commercial quantities of separated NdPr
available for shipment by the end of June
2024. Energy Fuels believes this is the first time in
several decades that a U.S. company has produced on-spec separated
REE's from monazite on a commercial scale.
The Company is extracting, refining and separating the NdPr from
monazite produced by The Chemours Company ("Chemours") at
its heavy mineral sand ("HMS") operations in Florida and Georgia. Energy Fuels began piloting REE
separations in 2021, and later performed partial REE separations in
2022 and 2023. The Company used this experience, having compiled
several years of real-time data, to custom design and construct its
new Phase 1 REE separation circuit at the Mill, which is now
operating as designed. The Company would also like to highlight
both the speed at which the circuit has reached full design
capacity, and the fact that it has not experienced complications
with start-up, which are so typical with the commissioning of new
equipment and processes. Energy Fuels also completed construction
of its Phase 1 REE Separation Circuit in Q1-2024 for a total cost
of only about $16 million, which was significantly under the
original budget of $25 million and a
further testament to the capabilities of the Mill and the years of
solvent extraction ("SX") experience and technical expertise
of Mill personnel. Also of note, the addition of REE separation
processes has not hindered the ability or capacity of the Company
to produce uranium at the Mill, and preparations are being made to
commence a uranium ore and alternate feed uranium-bearing
material processing campaign in Q3-2024.
During Q2-2024, the Company expects to produce about 25 to 35
tonnes of on-spec, separated NdPr from the monazite Energy Fuels
has in inventory at this time. From the new circuit, Energy Fuels
also expects to produce a samarium-plus ("Sm+"), "heavy" REE
concentrate, while also recovering the contained uranium from the
monazite feed stocks. The Company expects to utilize this Sm+
concentrate to continue pilot-scale dysprosium ("Dy") and
terbium ("Tb") separation and to design SX circuits at the
Mill able to produce these "heavy" REE products in separated
individual forms at the specifications required for metal and alloy
making. Currently, there is no company in the Western Hemisphere
capable of commercially producing separated, on-spec Dy, Tb, or
other "heavy" REE products. NdPr, Dy, and Tb are known as the
"magnet" REE's, as they are key and necessary ingredients in the
powerful magnets used in the most efficient EVs, dual power hybrid
vehicles, direct-drive wind energy, military and defense
technologies, and other clean energy applications.
Following completion of NdPr production at the Mill in Q2-2004,
the Company expects to begin processing uranium ore and alternate
feed materials from our current stockpiles, resulting in the
expected production of 150,000 to 500,000 pounds of
U3O8 during 2024, with production ramping up
further in 2025. As previously announced, Energy Fuels has also
acquired, or is in the process of acquiring, several HMS projects
to secure monazite, which we believe will be globally
cost-competitive, to supply future REE separation at the Mill. This
includes the Bahia Project in Brazil that the Company acquired in
February 2023, the Donald Project
joint venture that the Company announced on June 3, 2024, and the pending acquisition of Base
Resources and the Toliara Project in Madagascar, which in aggregate have the
potential to make Energy Fuels one of the largest separated REE
producers in the world. The Company expects to receive material
quantities of monazite from these projects commencing as early as
2026. In the meantime, the Company plans to focus operations on an
aggressive campaign of uranium production during the second half of
2024, all of 2025, and thereafter to supply U.S. uranium into the
Company's portfolio of uranium contracts with U.S. nuclear
utilities, in addition to additional spot and contract sales into
uranium market strength.
MARK S. CHALMERS, PRESIDENT
AND CEO OF ENERGY FUELS STATED:
"We have achieved a significant milestone for the Energy Fuels,
for Utah, and for the United States: the commercial production
of separated rare earths that meet applicable product
specifications, while simultaneously ramping up domestic uranium
production aggressively. I wish to congratulate the entire team at
the White Mesa Mill for bringing commercial rare earth separation
capabilities and expertise back to the
United States, and for achieving this major accomplishment
ahead of schedule and under budget. With this announcement, Energy
Fuels can confirm the return of separated rare earth production
from monazite back to the United
States after a multi-decade absence, in addition to the
return of technological know-how and expertise in this extremely
important field that is critical to national and economic
security.
"Due to the overwhelming success of Energy Fuels' Phase 1 REE
separation project, Energy Fuels can now continue to advance its
rare earth initiatives with an extremely high degree of confidence.
This includes a potential expansion of standalone rare earth
separation capabilities at the Mill to 4,000 to 6,000 tonnes of
NdPr per year, along with 150 to 225 tonnes of Dy, and 50 to 75
tonnes of Tb, through development of our planned Phase 2 and Phase
3 REE separation circuits. While our recently commissioned Phase 1
Separation circuit is globally significant and would rank the
Company as one of the leading producers of separated REEs in the
world outside of China, our
planned Phase 2 and Phase 3 Separation Circuits would truly be
world-class. In addition, we are building a world-class portfolio
of heavy mineral sand assets to control our supply of low-cost
monazite. We are also ramping-up pilot testing on 'heavy' rare
earth separation, with a focus on Dy and Tb. Due to knowledge
gained from NdPr, we are confident we will be able to produce
on-spec Dy, Tb, and any other separated rare earth products and to
design, engineer, permit, construct and commission our Phase 2 and
Phase 3 REE separation circuits within budget and time-frame
expectations. Our capital investments in the planned Phase 2 and
Phase 3 REE separation circuits will be conditional on receipt of
suitable customer and/or government backing in the form of supply
agreements, offtake agreements and/or financial support. We believe
we are in an enviable position to secure this support, based on our
proven rare earth processing, refining and separation capabilities
and the world-class monazite supply chain we have secured and are
securing. I am very pleased that all things are coming together and
that we are emerging as a leading U.S. rare earth producer, in
addition to advancing our position as a U.S-leading producer of
uranium and vanadium.
"Once we conclude this run of separated NdPr, we plan to focus
on the processing of our substantial stockpiled uranium ore and
alternate feed material inventories at the Mill and the continued
ramp-up of our uranium mining, production and sales. At the same
time, we plan to design and permit a world-class expansion of REE
separation at the Mill -- which is only about four to six times
greater than what we have already achieved. Importantly, we will
also continue to market our REE products to customers and evaluate
government funding collaborations."
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based uranium and critical
minerals company. The Company, as a leading producer of uranium in
the United States, mines uranium
and produces natural uranium concentrates that are sold to major
nuclear utilities for the production of carbon-free nuclear energy.
Energy Fuels recently began production of advanced REE materials,
including mixed REE carbonate in 2021, and commenced production of
commercial quantities of separated REEs in 2024. Energy Fuels also
produces vanadium from certain of its projects, as market
conditions warrant, and is evaluating the recovery of radionuclides
needed for emerging cancer treatments. Its corporate offices are in
Lakewood, Colorado, near
Denver, and substantially all its
assets and employees are in the United
States. Energy Fuels holds two of America's key uranium
production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery
("ISR") Project in Wyoming.
The White Mesa Mill is the only conventional uranium mill operating
in the US today, has a licensed capacity of over 8 million pounds
of U3O8 per year, and has the ability to
produce vanadium when market conditions warrant, as well as REE
products, from various uranium-bearing ores. The Nichols Ranch ISR
Project is on standby and has a licensed capacity of 2 million
pounds of U3O8 per year. The Company recently
acquired the Bahia Project in Brazil and entered into a joint venture
agreement to develop the Donald Project in Australia, each of which is believed to have
significant quantities of titanium (ilmenite and rutile), zirconium
(zircon) and REE (monazite) minerals. In addition to the above
production facilities, Energy Fuels also has one of the largest NI
43-101 compliant uranium resource portfolios in the US and several
uranium and uranium/vanadium mining projects in production,
on standby and in various stages of permitting and development. The
primary trading market for Energy Fuels' common shares is the NYSE
American under the trading symbol "UUUU," and the Company's common
shares are also listed on the Toronto Stock Exchange under the
trading symbol "EFR." Energy Fuels' website is
www.energyfuels.com.
Cautionary Note Regarding Forward-Looking
Statements: This news release contains certain "Forward
Looking Information" and "Forward Looking Statements" within the
meaning of applicable United
States and Canadian securities legislation, which may
include, but are not limited to, statements with respect to: any
expectation that the Company will maintain its position as a
leading U.S.-based uranium and critical minerals company or as the
leading producer of uranium in the U.S.; any expectation as to
production levels or timing or duration of production from the
Bahia Project, the Donald Project, the Toliara Project or any of
the Company's other mines or projects; any expectation as to costs
of production at the Bahia Project, the Donald Project, the Toliara
Project or any of the Company's other mines or projects, or that
the Company will secure monazite at globally competitive costs; any
expectation that the Company may be successful in entering the REE
metal, alloy, and/or magnet-making space; any expectation that the
addition of REE production will not diminish in any way the
Company's U.S. leading uranium production capabilities; any
expectation that any ore reserves estimated to date will accurately
reflect actual reserves or resources; any expectation that the
Company will be successful in advancing its REE initiatives or that
it will be successful in installing REE production capacity at the
Mill and the timing of installation of any such production
capacity; any expectation that the Company's REE and other products
will and will continue to meet commercial specifications; any
expectation as to when the Company will have commercial quantities
of separated NdPr available for shipment; any expectation that the
Company's planned Phase 2 and Phase 3 separation circuits will be
developed and if developed would be world-class; any expectation
that the Company's planned Phase 2 and Phase 3 separation circuits
if developed, would be developed within budget and time-frame
expectations; any expectation as to the success of the Company's
permitting programs; any expectation that the Company's
proposed acquisition of Base Resources and the Toliara project will
be completed or if completed, completed on the terms and time
proposed; any expectation that the Company will be able to secure
commitments for satisfactory offtake and/or sales agreements for
REEs produced from monazite at the Mill; any expectation that
Energy Fuels will be successful in obtaining suitable supply
agreements, offtake agreements and/or financial support from
customers and/or governments, to justify development of the planned
Phase 2 and Phase 3 separation circuits, or at all; any expectation
that the Company is emerging as a leading U.S. rare earth producer,
in addition to advancing its position as a U.S-leading producer of
uranium and vanadium; any expectation that the Bahia Project
and Donald Project will be developed and proceed to production; and
any expectation that the Company will be successful in acquiring
Base Resources or that the Toliara Project will be developed and
proceed to production. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"plans," "expects," "does not expect," "is expected," "is likely,"
"budgets," "scheduled," "estimates," "forecasts," "intends,"
"anticipates," "does not anticipate," or "believes," or variations
of such words and phrases, or state that certain actions, events or
results "may," "could," "would," "might" or "will be taken,"
"occur," "be achieved" or "have the potential to." All statements,
other than statements of historical fact, herein are considered to
be forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements express or implied by the
forward-looking statements. Factors that could cause actual results
to differ materially from those anticipated in these
forward-looking statements include risks associated with:
commodity prices and price fluctuations; engineering, construction,
processing and mining difficulties, upsets and delays; permitting
and licensing requirements and delays; changes to regulatory
requirements; legal challenges; the availability of feed sources
for the Mill; competition from other producers; public opinion;
government and political actions; the failure of the Company to
provide or obtain the necessary financing required to develop the
Bahia Project, the Donald Project, the Toliara project or any of
the Company's other projects or initiatives; available supplies of
monazite; the ability of the Mill to produce rare earth carbonate,
rare earth elements or other rare earth element products to meet
commercial specifications on a commercial scale at acceptable costs
or at all; market factors, including future demand for uranium,
rare earth elements and heavy mineral sands; the ability of the
Mill to be able to separate radium or other radioisotopes for
cancer treatments at reasonable costs or at all; market prices and
demand for medical isotopes; and the other factors described under
the caption "Risk Factors" in the Company's most recently filed
Annual Report on Form 10-K, which is available for review on EDGAR
at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the
Company's website at www.energyfuels.com. Forward-looking
statements contained herein are made as of the date of this news
release, and the Company disclaims, other than as required by law,
any obligation to update any forward-looking statements whether as
a result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or
otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements. The Company assumes no
obligation to update the information in this communication, except
as otherwise required by law.
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SOURCE Energy Fuels Inc.