Denver-based Energy Fuels Inc (NYSEAMERICAN: UUUU) signed a critical agreement with the Navajo Nation this week. It establishes a set of rules and guidelines for the company’s transportation of uranium ore through Indigenous lands.
The development follows conflict arising between the company and the Native American tribe last year when Energy Fuels was caught transporting radioactive ore from the Pinyon Plain Mine in Arizona to its White Mesa mill in Utah without authorization. Navajo Police attempted to stop the trucks, but they had already crossed the state line into Utah before they could do so.
This occurred at the end of July, causing outrage and protests.
The following month, Arizona Governor Katie Hobbs demanded that Energy Fuels cease its uranium transport until negotiations were completed. And now, following months of heated discussions and animosity, a compromise has been reached.
“I’m proud to have brought Energy Fuels and Navajo Nation to the table so they could come to an agreement that addresses the Nation’s long-standing concerns and includes enhanced emergency response plans,” Hobbs said in a statement on Wednesday.
Energy Fuels will now be expected to transport its material on specific routes, at certain times of the day, and will be prohibited from doing so on days when Navajo cultural events are ongoing. Drivers will be required to have additional qualifications, training, obtain a Navajo Nation-specific transport license and abide by more stringent inspection procedures.
Furthermore, the company will be expected to employ state-of-the-art cover systems on its trucks to prevent any contaminated dust from escaping.
Ore transportation is expected to resume next month.
Energy Fuels entered into a landmark agreement with the Navajo Nation today following months of productive, good-faith dialogue.
Hear from our CEO, Mark Chalmers, about how this historic agreement between Energy Fuels and the Navajo Nation is a win-win for all stakeholders.… pic.twitter.com/gnIpAfsfC8
— Energy Fuels Inc. (@Energy_Fuels) January 30, 2025
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Energy Fuels helps Navajo Nation cleanup abandoned mines
As part of the agreement and in an act of good will to the Indigenous group, Energy Fuels will be assisting with the cleanup of Cold War era uranium mines on Navajo lands.
The company will transport up to 10,000 tons of contaminated uranium-bearing materials from these abandoned sites to proper storage locations at no expense.
Energy Fuels currently has a strong financial position, with a cash balance exceeding US$183 million and no debt. The mining company expects to produce over 1 million pounds of uranium this year and aims to increase that number two-fold in 2026. Rare earth elements are a key focus for Energy Fuels too.
The Navajo Nation is the largest Indigenous group in the United States with over 300,000 members. They primarily reside in Arizona, New Mexico and Utah.
Health issues attributable to uranium mining on their lands in past decades are an ongoing concern for the tribe.
rowan@mugglehead.com
