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 competitive costs. The study outlines an estimated $410 million initial capital cost, with an after-tax net present value of $1.9 billion at an 8% discount rate and a 33% internal rate of return for the Phase 2 Circuit on a standalone basis. When paired with the company's Vara Mada project, the combined net present value rises to $3.7 billion.
The Phase 2 Circuit is expected to expand neodymium-praseodymium oxide production capacity to more than 6,000 tonnes per year upon commissioning, positioning the White Mesa Mill among the world's largest and lowest-cost producers of both light and heavy rare earth oxides. Regulatory approval for the expansion is anticipated by mid-2027, with construction and commissioning targeted for completion by the first quarter of 2029. The full press release detailing these findings is available at https://ibn.fm/32xlV.
This expansion represents a significant development in U.S. efforts to secure domestic supply chains for critical materials essential to modern technologies. Rare earth elements are crucial components in numerous applications including electric vehicles, wind turbines, consumer electronics, and defense systems. Currently, the United States relies heavily on imports for these materials, creating strategic vulnerabilities in national security and economic competitiveness.
The White Mesa Mill expansion addresses this vulnerability by potentially supplying a significant share of U.S. rare earth demand from domestic sources. As the only fully licensed and operating conventional uranium processing facility in the United States, the White Mesa Mill provides existing infrastructure that can be leveraged for rare earth processing, offering advantages in permitting, operational experience, and community relations.
The project's strong financial metrics, including the 33% internal rate of return and $1.9 billion net present value, demonstrate commercial viability that could attract investment and accelerate development timelines. The combination of the White Mesa expansion with the Vara Mada project in Madagascar creates a diversified supply chain that spans multiple continents while maintaining significant U.S.-based processing capacity.
For investors and stakeholders, the latest news and updates relating to Energy Fuels are available in the company's newsroom at http://ibn.fm/UUUU. The successful implementation of this expansion would position Energy Fuels as a major player in the global rare earth market while strengthening U.S. manufacturing capabilities across multiple high-tech industries. The project timeline targeting 2029 commissioning aligns with growing demand projections for rare earth elements driven by global transitions to clean energy and advanced technologies.
