U.S. court decision on uranium benefits Canadian producers

The U.S. Supreme Court has ruled that the department of energy in that country is not required by law to restrict the enrichment of foreign uranium if such a restriction would not “assure the maintenance of a viable domestic uranium industry.” The decision, good news for uranium exporters such as Canada and Australia, comes on the heels of an agreement-in-principle reached between U.S. producers and Washington on the creation of an acquisition fund for domestic uranium and removal of any embargo on the use of imported uranium within the U.S.

A $1.75 billion fund would be set up to purchase only domestic uranium and provide for mill tailings reclamation. Utilities, producers and the U.S. government would contribute to the fund.

The Supreme Court ruling reverses a decision by an appeals court which ruled that the department of energy must restrict such enrichment to protect the U.S. industry. The troubled U.S. uranium industry has not been considered viable by the government since 1983.

Uranium is “enriched” in the U.S. to provide a better concentration of fissionable material for use as a nuclear fuel. The Candu heavy- water reactors used in Canada do not require enriched fuel for operation.