Canada’s uranium miners, confident that only they can meet US demand for the element after Russian supply curbs, have accelerated output and forward contracts to supply US energy companies, but they are now worried about possible tariffs from US President-elect Donald Trump.
Shares of uranium companies rallied in Toronto and New York over the last two weeks on news that Russia was planning to restrict the sale of enriched uranium to the US. This week, Trump threatened to slap a 25% tariff on all goods from Canada and Mexico. This could inflate prices of the radioactive material unless uranium receives exemptions.
Canada is the world’s No. 2 producer of uranium after Russia. About 85% of its production is exported. Companies say the commodity is in acute shortage. Vancouver-based uranium exploration company NexGen Energy is still at least four years away from producing in Canada.
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