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(Kitco News) - According to the U.S. Energy Information Administration (EIA), the domestic uranium mines produced 194,000 pounds of uranium concentrate (U3O8) in 2022, a significant increase from the 21,000 pounds produced in 2021 as production resumed at White Mesa Mill in Utah.

According to the report, uranium concentrate (U3O8) production in the United States increased in 2022 partly as a result of higher uranium prices.

However, EIA said U.S. U3O8 production remained near “historic lows” despite operations resuming at the White Mesa Mill, the United States’ only operating conventional uranium mill.

The uranium material used in U.S. nuclear power reactors is largely imported because it is more abundant and cheaper to produce in other countries, the report found. In 2022, 95% of the uranium purchased by U.S. nuclear power plant operators originated in other countries.

“Canada, which has large, high-quality uranium reserves, was the largest source of uranium purchased by U.S. nuclear power plants in 2022 at 27%. Kazakhstan was the second-largest source at 25%, followed by Russia at 12%,” the analysts said.

Importantly, EIA noted that the U.S. Department of Energy has announced its aim to increase domestic uranium production to reduce reliance on uranium imports.

In 2020, Congress established a strategic uranium reserve, a stockpile of domestically produced uranium that serves as backup supply for U.S. nuclear power plants and incentivizes domestic uranium production.

Moreover, at the end of 2022, the U.S. Department of Energy awarded the first U3O8 supply contracts for the reserve, including one to White Mesa’s operator, Energy Fuels.