(Kitco News) - Uranium Energy Corp (NYSE: UEC) announced Tuesday that it has won a $17.85 million award to supply 300,000 pounds of U.S. origin uranium concentrates at $59.50/lb. to the U.S. Department of Energy ("DOE") - National Nuclear Security Administration ("NNSA").
The company said that the award is in response to the NNSA's Request for Proposals ("RFP") to establish its strategic national Uranium Reserve program.
The Uranium Reserve was originally designed as a 10-year, $1.5 billion, plan to help revitalize the domestic uranium and conversion industry.
The award under the RFP is part of the initial $75 million authorized by Congress in 2020 to advance the U.S. Government's goal of supporting America's nuclear fuel supply chain and capabilities, it added.
According to a press release, the delivery will be made by book transfer to NNSA in the first quarter of 2023 with U.S. origin uranium currently held in the accounts of UEC.
President and CEO Amir Adnani stated, "We are honored and delighted to be selected as a domestic producer for this purchase of uranium concentrates by the NNSA and look forward to the further expansion of the Uranium Reserve program in the coming years.
"The U.S. nuclear reactor fleet that provides about 20% of America's electricity production, and over half of its clean energy, imports nearly 60% of its current uranium requirements from Russia, Kazakhstan and Uzbekistan. The U.S. overdependence on these imports creates untenable energy and national security risks that need immediate high-priority attention from industry and the federal government."
UEC indicated it is the largest, diversified North American focused uranium company, advancing the next generation of low-cost, environmentally friendly in-situ recovery mining uranium projects in the United States and high-grade conventional projects in Canada.
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