Uranium prices have increased vertiginously in the past year. Credit: Dmitry Kalinovsky via Shutterstock.com.

EnCore Energy made its first shipment of uranium from its Rosita Central Processing Plant in south Texas, US, which became operational in November last year.

EnCore restarted operations at the Rosita Plant, which last produced yellowcake in 2008 before it was shut down, due to a sharp increase in the price of nuclear fuel, following renewed interest in nuclear power as an energy source. Furthermore, top uranium producers cutting production over the past year has lead its price to nearly double.

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Rosita, based 60 miles from Corpus Christi, Texas, has a production capacity of 800,000 pounds of triuranium octoxide (U₃O₈) per year. The plant is designed to process uranium feed from multiple satellite operations in south Texas.

EnCore said the first shipment of uranium from the Rosita plant is expected to be delivered to a conversion facility next week. This is the company’s fifth commercial uranium sales contract, with the terms of the contract reflecting the spot price at the time of delivery.

“This contracting will assure continuous revenue to support enCore’s longer-range growth plans along with steady production increases as a key component of enCore’s production strategy,” the company said.

In 2021, enCore signed two long-term supply agreements, one with UG USA and another with a US utility, then announced a fourth sales agreement.

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“To support our production pipeline and development plans, enCore has implemented a uranium sales strategy providing the company with a base level of projected income while preserving significant ability to realise opportunities in the spot market,” enCore added.

Now that the Rosita plant is under way, the company will now look to restart the Alta Mesa Plant, which is expected to commence production in the second quarter of 2024, according to chief executive Paul Goranson.