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Ur-Energy adopts cost-cutting measures after Trump says no to uranium quotas

Ur-Energy Inc. implemented cost-cutting measures at its Lost Creek uranium facility in Wyoming, citing the recent decision by U.S. President Donald Trump to not impose quotas for domestic uranium production.

Ur-Energy and Energy Fuels Inc. were proposing quotas requiring 25% of the U.S. uranium market to be sourced domestically. Following an investigation, the Commerce Department recommended Trump to issue a lower-scaled quota system.

But in mid-July, Trump shunned the department's advice and instead ordered a deeper 90-day review by the U.S. Nuclear Fuel Working Group, which was established to evaluate options for the domestic uranium industry.

Ur-Energy said Aug. 6 that it must take immediate action to avoid dilution and the need for financing, while remaining optimistic about the group's review.

It dismissed 10 workers at Lost Creek and reduced staff levels to a minimum, while asking certain other employees to change responsibilities or take on additional duties. The company anticipates annual cost savings of about US$4 million, starting in 2020.

The company recently decreased 2019 production guidance for Lost Creek to between 50,000 pounds and 75,000 pounds of uranium.