Biden Gets Scrutinized For Excessive Reliance On Russian Uranium – Sienna Resources (OTCMKTS: SNNAF) Could Present An Alternative
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February 21, 2024 08:25 AM Eastern Standard Time
By Faith Ashmore, Benzinga
Nuclear power has been a point of contention for politicians and countries since the start of the Cold War. With the impending U.S. election and tensions high across the Atlantic, the question of uranium imports is once again on the American public's mind. In 2022, the U.S. imported 27% of its uranium from Canada, 25% from Kazakhstan, 12% from Russia, and the remaining from 36% other countries combined. Kazakhstan is the world’s largest exporter of uranium; however, Kazakhstan’s lead uranium producer Kazatomprom (OTCMKTS: NATKY) announced recently that it may have to cut production in 2024 due to difficulties with sulphuric acid availability.
Amid supply chain disruptions from Kazakhstan, Americans have become increasingly wary about importing uranium from Russia. While distrust of Russia has long preceded the Russian-Ukrainian war, the conflict has resulted in many major economies instituting economic sanctions on Russia. The purchase of enriched uranium is one of the most significant cash flows from the U.S. to Russia. Approximately 64% of Americans believe that Russia’s power and influence are a major threat to their country.
Biden has faced scrutiny for continuing the policy of importing uranium from Russia. In December, the House of Representatives passed a ban on imports of Russian uranium to add pressure on Moscow for the Russia-Ukraine conflict. In January, the Department of Energy announced plans to help build domestic uranium supply and to look to more local suppliers for the nuclear industry.
As the election approaches, ties with Russia are likely to be a topic of conversation. “It’s inexplicable that over a year after Russia invaded Ukraine, the Biden administration does not appear to have a plan to end this dependence,” shared James Krellenstein, the director of GHS Climate, a clean energy consulting firm that recently issued a white paper on the subject. As the U.S. works to ramp up domestic production, it may turn to its northern ally as a key importer of uranium.
Canada is the second largest producer of uranium in the world, accounting for approximately 13% of global production in 2019. Most of Canada's uranium production comes from mines in northern Saskatchewan. Sienna Resources (OTCMKTS: SNNAF), a company focused on exploring and developing mineral resources, has recently expanded its portfolio in the Athabasca Basin of Saskatchewan, adding the "Uranium Town Project" and the "Dragon Uranium Project" to its assets.
The Athabasca Basin region is renowned for its rich uranium deposits, and Sienna's acquisitions provide a sizeable land area spanning over 21,000 acres. The World Nuclear Association has claimed that the highest-grade uranium mine in the world is in the Athabasca Basin of Saskatchewan, adding to the potential of Sienna’s newfound projects. The Uranium Town Project covers an area of 10,357 acres adjoining Denison Mines Corporation’s (NYSE: DNN) operations in the region, while the Dragon Uranium Project spans an impressive 10,845 acres bordering Cameco Corporation (NYSE: CCJ) – the world's largest producer of uranium.
As the U.S. establishment faces continued scrutiny from allies and constituents about economic ties with Russia, importing uranium from Canada may present a better alternative. Companies like Sienna could be instrumental in shifting strategic imports away from Russia.
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