US Uranium Mining Poised for Resurgence

By Felicity Landon

As geopolitical tensions reshape the global uranium market, the U.S. is ramping up efforts to revive domestic mining and reduce foreign dependence. For breakbulk and project cargo, this shift could open up significant new opportunities tied to the nuclear energy supply chain.

From Issue 3, 2025 of Breakbulk Magazine

(5-minute read)

Uranium mining and processing is poised for a resurgence in the United States, as the Department of Energy pushes for increased nuclear power generation while also reducing dependence on imported uranium.

Geopolitics is a major part of the story. According to the DoE, Russia currently has about 44% of the world’s uranium enrichment capacity and supplies approximately 35% of U.S. imports for nuclear fuel. Although President Biden signed into law a ban on Russian LEU (low enriched uranium) imports in May 2024, waivers can be granted for specified quantities of Russian LEU under certain circumstances, i.e. to avoid disruption to nuclear power plants.

The expansion of domestic commercial LEU enrichment capabilities to support the fuel supply for U.S. nuclear reactors “will promote diversity in the LEU market and provide a reliable supply of commercial nuclear fuel critical to U.S. clean energy and energy security goals,” says the DoE.

In December, it selected six companies from which it can sign contracts to procure LEU, a move designed to incentivize the buildout of new uranium production capacity in the U.S., it said.

Quoting President Trump’s “bold agenda to unleash American energy and AI dominance,” the Office of Nuclear Energy announced in March a US$900m solicitation to support the deployment of small modular reactors to “help grow the supply of affordable and abundant energy for Americans”.

The Trump administration may be turning its back on solar and offshore wind, but it is certainly zeroing in on nuclear, says Gavin Erasmus, global head for the mining sector at DHL Industrial Projects.

A Strategic Move

Erasmus recently relocated from the UK to Phoenix – a move “recognizing the strategic importance of proximity to key mining operations in the Southwest U.S.,” said the company. “This move represents a commitment to invest in the sector as a whole, providing increased coverage and ensuring subject matter experts are closer to our clients’ base in all geographical locations.”

DHL Industrial Projects does not currently service any existing uranium projects but there are some significant developments within the U.S. uranium mining sector where DHL IP is positioned to support, says Erasmus.

“Energy Fuels has reopened three uranium mines in Arizona and Utah – Pinyon Plain, La Sal and Pandora – in response to favorable market conditions. These mines are expected to produce uranium at a run rate of 1.1–1.4 million pounds annually. Additionally, the company plans to commence production at two more facilities in the Southwest U.S. by 2025, potentially increasing its uranium production to over 2 million pounds of U3O8 (yellowcake) by the end of 2025.”

U.S. domestic uranium production peaked in the 1980s before declining due to low prices and competition from international producers, notes Erasmus. “In 2023, U.S. uranium production was approximately 224,331 pounds of U3O8, accounting for a mere 0.4% of the nation’s nuclear fuel requirements. As a result, this was not an area of focus for DHL IP.

“However, the recent global emphasis on reducing carbon emissions has positioned nuclear energy as a viable alternative to fossil fuels. This shift has led to increased demand for uranium, the essential fuel for nuclear reactors. Notably, the expansion of energy-intensive technologies, such as artificial intelligence and cryptocurrency mining, has further heightened electricity consumption, prompting a re-evaluation of nuclear power’s role in meeting these needs.”

The Prohibiting Russian Uranium Imports Act of May 2024 has made the industry far more attractive as a potential project revenue stream to DHL IP, says Erasmus.

However, he says, the U.S. uranium mining industry faces significant logistical and supply chain challenges – including transportation bottlenecks, regulatory hurdles, geopolitical concerns and processing limitations.

“One of the biggest issues is transportation. Uranium ore and its processed form, yellowcake, require specialized handling due to their radioactive nature. Strict federal and state regulations govern the movement of uranium, leading to delays in permitting and shipment approvals.

“Additionally, the U.S. lacks dedicated uranium transport infrastructure, making reliance on existing rail and trucking networks inefficient. Given the long distances between mining sites (primarily in Arizona, Wyoming, Utah and Texas) and processing facilities, transportation costs can be a major obstacle.”

Capacity Constraints

“Another key challenge is the limited number of domestic uranium processing and enrichment facilities,” adds Erasmus. The U.S. currently depends on a handful of conversion plants, including the Metropolis Works facility in Illinois. However, these facilities have struggled with capacity constraints, leading to reliance on foreign sources for further refining. Until domestic enrichment capabilities expand, the US uranium supply chain remains vulnerable to disruptions.”

Permitting for new mines and processing plants is a lengthy process, often taking years due to environmental impact assessments and legal challenges, says Erasmus. “These delays add uncertainty to the supply chain but the challenges provide opportunities for the project experts within the USA DHL Industrial Projects teams.

“Having a dedicated in-house transport engineering team with services that include transport calculations, securement design, motion analysis, stability analysis, lifting studies, structural checks, and technical drawings and plans positions DHL IP to safely move uranium industry cargo. The wider DHL network also allows the USA IP team to safely manage all the requirements for both uranium mining projects and existing uranium operations.”

DHL IP sees two clear strands of opportunity. At current sites, or those being stepped up, the work is not so much inbound project and logistics based but more about re-supply and handling outbound bulk cargo. For potential new sites, normal mining equipment would be required – pumps, crushers, processing equipment, conveyors and so on. “The processing differs for the commodity but overall, the concept for mining does not,” says Erasmus.

Blue Water Shipping is working with several uranium miners in the development and execution of logistics for greenfield projects and operational mines across Australia and Africa. As a global logistics services provider, the company specializes in shipping and transport requirements for mining and engineering companies and suppliers.

Stephen Westfield, the company’s global head of mining, is also keeping an eye on developments in the U.S. He says: “The administration signed executive orders that could shift the course of U.S. mining. The move, which is framed around national security, introduced fast-tracking of mining project measures for permitting and government funding.”

Blue Water Shipping is currently executing and bidding for mining capital projects in the U.S. across Nevada and Arizona, which are mostly for gold mining, Westfield says.

“The world’s top four exporters of uranium are Kazakhstan, Australia, Namibia and Canada. The main driver of production besides tonnage and grade is the price, which has had a wide-ranging cyclical history. After a doldrum period lasting many years, it soared to $148 (per pound) in 2007 and collapsed only to rise again, then flop. It is now in a bearish place at $65.”

Logistics Challenges

The logistics challenges around uranium mining are significant and complex – both in supplying construction materials to build mines and shipping the export product, says Westfield.

For example: “Logistics dynamics change between project planning, final investment decision and execution, which are driven by the uranium price and project financing. The shipping of yellowcake is inherently challenging with very onerous permitting and administrative processes. It is also expensive. For the cost ex- Africa, it is not uncommon to see US$20,000 ocean freight per container of uranium, compared to a general cargo rate of $1,500.”

Underlying it all is demand, which is based on movements in nuclear power. The World Nuclear Association reports that 65 new reactors are being built worldwide, with another 90 planned. “The expected expansion of nuclear power around the world indicates higher prices once utilities start opening their orderbooks to restock their depleted inventories. This demand will ultimately drive new projects and the associated logistics activities, so we are long uranium,” says Westfield.

Among the six companies selected by the DoE to supply LEU is Laser Isotope Separating Technologies, Inc. (LIST). The company is collaborating with sister company NANO Nuclear Energy (NNE) to advance LIST’s patented enrichment technology and for LIST ultimately to provide NNE with enriched uranium hexafluoride for processing into fuel forms for its reactors in development and for future sale to third parties.

NNE is focused on portable and other microreactor technologies, nuclear fuel fabrication and transportation, nuclear applications for space, and nuclear industry consulting services. It lays claim to being the first portable nuclear microreactor company to be listed publicly in the U.S.

Its products in development include the Kronos MMR Energy System, a stationary high-temperature gas-cooled reactor; the Zeus solid core battery reactor; and the Odin low-pressure coolant reactor.

Flooding the Market

Nuclear physicist James Walker, CEO of NNE, says: “The fuel supply chain in the U.S. has atrophied to a point where it could not supply the fuel necessary to go into any advanced reactor systems. So, we carried out an investigation into how we derisk our company. Nano was a founding member of [the DOE] HALEU [High-Assay Low-Enriched Uranium] Consortium set up in 2022 to address deficits in the infrastructure.

“Because Russia had flooded the market with cheap uranium, this put the price down so far that mining investment stopped. When the uranium price crashed, it was no longer economical to develop these mines – they were shut down and/ or put on care and maintenance.”

Now prices have picked up, so does the economics of working the mines. However, says Walker: “It might take a number of years to develop a mine, as you need to do the drilling and mine planning. From a greenfield property even with demonstrated uranium at site, it could be a five-year lead time before producing any uranium to the market.

“Also, it’s not only bringing the mine online – it’s the specialist rail and road transport. You need to move yellowcake to conversion; conversion to enrichment; enrichment to deconversion. It’s one thing to build up an industry, it’s another to have a functioning industry.”

NNE is in negotiation with transport companies with a view to making acquisitions. “To build [a transport fleet] from scratch would be very difficult. It is almost certain we will buy into or acquire an existing company.”

Walker predicts a spike in demand for uranium that will push up prices and, therefore, production. “Current production is way under what’s needed to supply reactors.”

Gavin Erasmus says that from the regulatory point of view, many people are waiting to understand what the Trump administration is going to do. “There is a lot of talk about easing some of the regulations, making it easier for domestic miners to get permits and fast-tracking permitting processes.

“But everyone is expecting the next four years to be significantly better from the mining point of view than the previous four years. Under President Trump, all indications are that he wants to make it easier to get mines permitted and under way."

The move away from oil and gas towards nuclear and other low-carbon energy sources will be a key talking point in a panel session at Breakbulk Europe 2025. “Energy Opportunities for Project Cargo” will take place on the main stage of Rotterdam Ahoy on Tuesday, 13 May at 1:30pm-2:10pm.

TOP PHOTO: Omega Morgan workers oversee operations at a U.S. mine. CREDIT: Omega Morgan