GTI Energy Ltd (ASX:GTR, OTC:GTRIF) has welcomed the signing into law this week by US President Joe Biden of legislation banning the import of Russian-enriched uranium.
In addition to preventing US utilities from buying Russian nuclear fuel products and services (including uranium), signing of the bill also importantly unlocks US$2.7 billion in federal funding which is in place to support of the domestic nuclear fuel cycle.
With its focus on defining and developing economic ISR uranium resources in the US – GTI Energy is part of the US domestic uranium mining revival.
“Significant development”
The company, which has uranium projects in Wyoming and Utah, said: "We believe that this is a very significant development for the US uranium sector and is a disruptor to the global nuclear fuels market.
"Knock-on effects of the ban could include further tightening of supply and increases in price across the nuclear fuel supply chain, including U3O8 spot and term prices. This in turn may lead to improved sentiment for uranium equities."
Part of this US$2.7 billion in funding will fund the Nuclear Fuel Security Act (NFSA), which will reactivate the US Strategic Uranium Reserve.
GTI Energy said this initial 10-year program now had new “life” and should support US domestic producers via purchases of domestically produced uranium for years to come.