Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) announced the results of a new Bankable Feasibility Study for its planned Phase 2 rare earth element (REE) processing circuit expansion at its 100%-owned White Mesa Mill in Utah. The study confirms strong economics, competitive costs, and the potential to supply a significant share of U.S. rare earth demand, marking a critical step toward reducing dependence on foreign supply chains for these strategic materials.
The study outlines an estimated $410 million initial capital cost, with an after-tax net present value (NPV) of $1.9 billion at an 8% discount rate and a 33% internal rate of return (IRR) for the Phase 2 Circuit on a standalone basis. When combined with the Vara Mada project in Madagascar, the combined NPV rises to $3.7 billion, highlighting the synergistic value of Energy Fuels' integrated strategy. Upon commissioning, the Phase 2 Circuit is expected to expand neodymium-praseodymium (NdPr) oxide production capacity to more than 6,000 tonnes per year, positioning the Mill among the world's largest and lowest-cost producers of both light and heavy rare earth oxides.
Regulatory approval is anticipated by mid-2027, with construction and commissioning targeted by the first quarter of 2029. The White Mesa Mill is already the only fully licensed and operating conventional uranium processing facility in the United States, and this expansion leverages existing infrastructure to create a domestic source of critical rare earth materials. The implications are significant for U.S. national security and clean energy goals, as rare earth elements are essential for permanent magnets used in electric vehicles, wind turbines, and defense systems. Currently, China dominates global rare earth processing, and the White Mesa expansion could help diversify supply chains.
Energy Fuels has been the leading U.S. producer of natural uranium concentrate for the past several years, and this expansion underscores its transition into a broader critical materials company. The company also owns the Vara Mada heavy mineral sands project in Madagascar, the Bahia Project in Brazil, and has a right to earn up to a 49% interest in the Donald Project in Australia through a joint venture with Astron Corporation Limited. These assets provide a diversified supply of feedstocks for the White Mesa Mill.
The full press release with detailed study results is available at https://ibn.fm/32xlV. For the latest news and updates relating to UUUU, visit the company’s newsroom at http://ibn.fm/UUUU.
