Uranium Energy Corp Finalizes $175M Acquisition of Key Wyoming Uranium Assets

Uranium Energy Corp (UEC), a Texas-based energy company, has finalized the $175.4 million purchase of Rio Tinto’s uranium assets in Wyoming, including the Sweetwater County processing plant, Cowboy State Daily reports.

The acquisition positions UEC as the largest uranium producer in the United States, significantly expanding its production capacity and mining rights across the state.

With this acquisition, UEC’s total production capacity reaches 12.1 million pounds of uranium annually, including 8.1 million pounds from Wyoming. The purchase also includes one of the nation’s few licensed uranium processing mills, giving UEC a significant operational advantage as it aims to support a growing global demand for uranium, driven in part by the rise of artificial intelligence (AI) technologies and increasing interest in nuclear energy.

UEC’s purchase from Rio Tinto includes a range of critical uranium production assets, exploration rights, and infrastructure, all of which strengthen its position in the U.S. nuclear energy supply chain.

1. Sweetwater County Processing Plant:
   • Located 40 miles northwest of Rawlins and 75 miles northeast of Rock Springs, this facility is one of only a few licensed uranium processing mills in the country.
   • The plant has a production capacity of 3,000 tons of uranium per day and is licensed to produce up to 4.1 million pounds of uranium oxide annually.
   • The facility is equipped to handle uranium from both in-situ recovery (ISR) and conventional mining operations.
2. Mining Rights and Land Holdings:
   • Red Desert Uranium Project: Spanning 20,005 acres in Wyoming’s Great Divide Basin, this site includes 17,750 acres of unpatented mining claims, 1,975 acres of patented land, and 1,280 acres of state uranium leases. Early exploration indicates potential uranium deposits of 42 million pounds of uranium oxide, with additional opportunities for further resource development.
   • Green Mountain Project: Located 22 miles north of the Sweetwater plant, this project includes 32,040 acres of exploration and mining rights, with deposits totaling an estimated 133 million pounds of uranium oxide. The project site comprises 29,400 acres of unpatented mining claims, 640 acres of patented land, and 2,000 acres of state uranium leases.
3. Strategic Advantages:
   • The Sweetwater mill’s pre-licensed status enables UEC to accelerate its production timeline.
   • The plant’s flexibility to process uranium from both in-situ recovery and conventional mining methods offers operational versatility and efficiency.
   • With these assets, UEC strengthens its position to support the growing uranium demands of nuclear power projects like TerraPower’s Natrium reactor in Kemmerer, Wyoming, as well as other potential buyers linked to the rise of AI-powered data centers.

UEC’s purchase could support the supply chain for TerraPower’s $4 billion Natrium power plant being developed in Kemmerer, Wyoming. TerraPower, which is backed by Microsoft co-founder Bill Gates, aims to convert a former coal-powered facility into a modern nuclear power plant.

UEC already has a memorandum of understanding with TerraPower to supply uranium for the facility, further solidifying the connection between Wyoming’s uranium industry and the development of cutting-edge nuclear power technology.

The Natrium project is expected to provide jobs for workers from Kemmerer’s closing coal-powered plant, offering employment opportunities with pay comparable to or higher than those in the coal industry. UEC’s ability to supply uranium from a local source could play a critical role in ensuring the project’s success.

With the acquisition of Rio Tinto’s Wyoming assets, UEC is now better positioned to meet the surging global demand for uranium. Interest in nuclear energy has been rising due to its potential to support clean energy transitions and its use in next-generation data centers.

Companies like Google, Microsoft, Amazon, and Meta have announced initiatives to integrate nuclear energy into their power supply strategies for AI-driven data centers, which require substantial energy inputs. The potential for modular nuclear reactors, such as those being developed by TerraPower and BWX Technologies, to power data centers could significantly increase demand for uranium.

According to UEC’s Vice President of US Operations Brent Berg, AI-driven demand is a major factor in the company’s strategy.

“All the big tech companies continue to dominate the news flow for nuclear,” Berg said.

He noted how companies like Amazon, Google, and Meta are signing contracts for small modular nuclear reactors (SMRs) to power their future data centers.

Uranium Mining Methods
UEC employs two main methods to extract uranium from the ground:

1. In-Situ Recovery (ISR): Similar to drilling for oil, ISR involves injecting a solution underground to dissolve uranium deposits, which are then brought to the surface and processed into yellow cake (a uranium concentrate).
2. Conventional Mining: Traditional mining methods, which extract solid rock material for processing. The Sweetwater processing plant can handle both in-situ and conventional uranium material, giving UEC flexibility to adapt to market conditions and available resources.

Before the Rio Tinto acquisition, UEC had a strong presence in Wyoming’s uranium industry. It owned about 20 uranium production sites in the state, including the Christensen Ranch and the Irigaray central processing plant for in-situ recovery in the Powder River Basin. This acquisition adds to its growing portfolio, further establishing UEC as a leading player in Wyoming’s uranium production.

The renewed interest in nuclear energy is part of a broader push for carbon-free energy. Wyoming, with its abundant uranium reserves, is poised to play a leading role in this energy transition.

The US government’s support for domestic uranium production aligns with UEC’s expansion strategy. By purchasing Rio Tinto’s Wyoming assets, UEC not only increases its production capacity but also reinforces its position as a key domestic supplier of uranium — a resource crucial for the US nuclear energy supply chain.

The acquisition also positions Wyoming as a major hub for uranium production and innovation in nuclear energy, building on its status as a top coal producer. As new nuclear power projects and AI-driven data centers demand more energy, Wyoming’s uranium production capacity will become increasingly essential.