Why the US?

Nuclear power and uranium are critical and expanding elements of the US electricity markets.  With 103 operational nuclear power reactors, the US accounts for over 25% of the world’s nuclear power generation capacity, supplying 20 per cent of the country’s power needs.  A further 23 plants are either under construction or are proposed.  Moreover, the Energy Policy Act 2005 has specific policies and incentives to expand the nuclear industry.

The Global Nuclear Energy Partnership, announced in the US in February 2006, explicitly states one of its goals is to reduce US dependence on imported fossil fuels.  These factors have lead to a resurgence in uranium exploration and production in the US, and Wyoming is one of the major focuses of this effort.

According to the US Energy Information Administration in 2006, US uranium concentrate production totalled 4.1 million pounds.  This is 53 per cent higher than the previous year and is the highest production level since 1999, but this only accounts for 8% of projected uranium demand in the US for 2007 (based on data from World Nuclear Association).

Wyoming

Wyoming is the largest net energy producing state in the US, being the largest producer of uranium and coal, and a major producer of gas and crude oil.  It has a long history of uranium mining.  Wyoming mines have produced 193 million pounds (87,500 tonnes) of U3O8.

The Federal United States and Wyoming State governments are supportive of nuclear power as an energy source and domestic uranium mining to fuel that industry.

Why Europe?

Nuclear power already contributes significantly to European Union energy security and CO2 emission reductions.  The European Commission’s strategic energy review has suggested a unilateral cut in greenhouse gas emissions by 20 per cent.  Achieving these targets has major implications for nuclear power across Europe.

There is already a general expansion in nuclear generating capacity with close to 200 reactors either operational or planned.  With this capacity comes demand for uranium supplies.  Many of the historic sources of uranium in the region are closed, leading to a dependence on supplies from countries outside Europe.

Hungary

Hungary has four nuclear reactors, which generate more than one third of the country’s electricity.  The Government has supported the development of this capacity to balance the country’s historic reliance on lignite burning power stations and the increasing importance of gas and has recently indicated it is considering further expansion of its nuclear capacity.

Although Hungary has historically had its own uranium reserves, these have either been decommissioned or are under care and maintenance.  The majority of Hungary’s uranium is supplied from Russia, with some potential use of fuels from the United Kingdom. 

South America

The region of South America where the WildHorse project is located has a history of operating uranium mines in Brazil and Argentina, and a nuclear power industry that is set to expand rapidly.

Nuclear Non-Proliferation Treaty

The US and Hungary are both signatories to the Nuclear Non-Proliferation Treaty (NPT). The NPT is an international treaty to limit the spread of nuclear weapons and has three pillars – non-proliferation, disarmament and the right to peacefully use nuclear technology. Signatories to the NPT have clear obligations about how they use and export uranium.