Energy Fuels Inc. has released a bankable feasibility study for its planned Phase 2 rare earth element processing circuit expansion at the White Mesa Mill in Utah, confirming strong project economics and the potential to supply a significant portion of U.S. rare earth demand. The study outlines an estimated initial capital cost of $410 million for the Phase 2 Circuit on a standalone basis, with an after-tax net present value of $1.9 billion at an 8% discount rate and an internal rate of return of 33%.
The economic picture becomes even more substantial when considering the company's broader portfolio. When paired with the Vara Mada heavy mineral sands project in Madagascar, the combined net present value rises to $3.7 billion. This integrated approach positions Energy Fuels to create a comprehensive rare earth supply chain from mine to separated oxides.
Upon commissioning, the Phase 2 Circuit is expected to expand neodymium-praseodymium oxide production capacity to more than 6,000 tonnes per year. This expansion would position the White Mesa Mill among the world's largest and lowest-cost producers of both light and heavy rare earth oxides. The company anticipates receiving regulatory approval by mid-2027, with construction and commissioning targeted for completion by the first quarter of 2029.
The implications of this expansion are significant for multiple sectors. Rare earth elements are critical components in numerous modern technologies, including electric vehicles, wind turbines, consumer electronics, and defense systems. Currently, the United States relies heavily on imports for these materials, particularly from China. The White Mesa Mill expansion represents a substantial step toward establishing domestic production capacity for these strategically important materials.
Energy Fuels' existing infrastructure provides a significant advantage for this expansion. The White Mesa Mill is the only fully licensed and operating conventional uranium processing facility in the United States, and the company has been the leading U.S. producer of natural uranium concentrate for several years. This existing operational expertise and regulatory compliance framework should facilitate the rare earth expansion process.
The company's broader strategy includes developing additional heavy mineral sands projects beyond Vara Mada, including the Bahia Project in Brazil and the Donald Project in Australia through a joint venture with Astron Corporation Limited. These projects could provide additional feedstock for the White Mesa Mill's processing capabilities. Energy Fuels is also evaluating potential recovery of medical isotopes from existing uranium process streams for emerging cancer treatments.
For investors and industry observers, the detailed study results are available in the company's newsroom at http://ibn.fm/UUUU. The announcement was disseminated through BillionDollarClub, a specialized communications platform within IBN's Dynamic Brand Portfolio. The full press release containing additional details about the feasibility study can be accessed at https://ibn.fm/32xlV.
The Phase 2 expansion at White Mesa Mill represents a strategic investment in U.S. critical materials infrastructure at a time when supply chain security for rare earth elements has become a national priority. With competitive production costs and substantial projected returns, the project could significantly alter the global rare earth landscape while supporting domestic manufacturing and clean energy initiatives.
