U.S. government agency said Uranium One and ARMZ lack the license to export nuclear fuel and material from the mines in the U.S.

In June 2009, the Russian uranium mining company ARMZ Uranium Holding Co., a part of Rosatom, acquired 16.6 percent of shares in Uranium One in exchange for 50 percent in Karatau uranium mining project.  ARMZ will eventually get the controlling stake in Uranium One.

Drilling Activities at Moore Ranch

According to the U.S. Nuclear Regulatory Commission, Uranium One will not be permitted to export uranium from deposits within the United States after the company comes under the control of Atomredmetzoloto. The Nuclear Regulatory Commission explained that both Uranium One and Atomredmetzoloto do not have the licenses required to ship uranium mined in America outside of the U.S. At the same time, the Nuclear Regulatory Commission approved Atomredmetzoloto’s plans to increase its stake in Uranium One from roughly 23 percent to over 50 percent.

The swap transaction presents definite ramifications for Uranium One’s license to carry on production activities at the Irigaray and Christensen Ranch uranium leaching facility in Wyoming. The deal with the Russian nuclear company also affects the grant of license the Nuclear Regulatory Commission made on September 30 to allow Uranium One to initiate its More Ranch in situ leach recovery project in Campbell County, Wyoming. Among other licenses affected is a materials license of Uranium One that provides the authorization to use tritium sealed sources for well logging. Uranium One’s two other recovery license applications for the Jab and Antelope and the Ludeman projects are under review of the Nuclear Regulatory Commission. Uranium One operates in the United States by way of subsidiary companies, Uranium One USA and Uranium One Americas.

In October of 2010, several members of the U.S. House of Representatives voiced their opposition to Uranium One’s deal with Atomredmetzoloto. Of particular concern was Russia’s work with Iran in building the nuclear power facility at Busher. The congressmen expressed fear that if the deal was concluded, American uranium could either directly or indirectly contribute to the advancement of the Iranian nuclear program. With the decision of the Nuclear Regulatory Commission to allow the asset swap to go forward there is now nothing standing in the way of the transaction.