Westwater Resources

Last updated
Westwater Resources, Inc.
Company type Public limited company
Nasdaq:  WWR
IndustryIndustrial Metals & Minerals
Founded1977 [1]
Headquarters Centennial, Colorado
Area served
U.S.
Key people
  • Frank Bakker
    (President & CEO)
  • Steven Cates
    (Vice President & CFO)
  • John Lawrence
    (General Counsel)
  • Cevat Er
    (CTO)
  • Terence J. Cryan
    (Chairman of the Board)
  • Jon Jacobs
    (Chief Commercial Officer)
  • Tracy D. Pagliara
    (Director)
  • Karli Anderson
    (Director)
  • Deborah A. Peacock
    (Director)
Website www.westwaterresources.net

Westwater Resources, Inc. (WWR), is an explorer and developer of US-based mineral resources essential to clean energy production. The company has operated some uranium facilities in the past, however they have recently been exploring graphite and vanadium. Vanadium is a critical mineral which currently sees little to no production in the US, and graphite is anticipated to see a rise in demand for batteries due to accelerating electric vehicle production. [2] Westwater is now focused on developing an advanced battery graphite business in the state of Alabama. [3]

Contents

Company history

In 1977, the company was founded in Southern Texas solely operating in uranium. [4]

In 2003, the company proposed to mine in traditional Navajo territory. [5] In 2012, the EPA was considering a permit for the Church Rock mine, [6] which had a large uranium spill contaminating the Puerco River and washing downstream to the Navajo Nation in 1979 when it was owned by the United Nuclear Corporation. [7] An online petition received over 15,000 supporters standing against the re-permitting of the Church Rock mine. [8] On April 8, 2016, the company sold its subsidiary, Hydro Resources, Inc. (which holds the Church Rock and Crownpoint uranium properties in New Mexico) to Laramide Resources, Ltd. [9]

In August 2012, the company merged with Neutron Energy, Inc. [10]

In August 2017, the company changed its name from Uranium Resources to Westwater Resources, Inc. [11] The company previously traded under the ticker symbol URRE.

Westwater Resources acquired Alabama Graphite Corp. in April 2018. [12]

Uranium

The company sold its uranium assets located in New Mexico and Texas to enCore Energy Corp. of Vancouver, British Columbia, Canada, a Toronto Venture Exchange-listed company (TSXV:EU). Total consideration accruing to Westwater from the deal is $1.8 million in enCore shares (2,571,598 shares), representing a 1.5% ownership of enCore, and two royalties from future production from the New Mexico uranium properties. enCore also assumed the asset retirement obligation on all remaining uranium reclamation activities associated with the assets in the amount of approximately $6.0 million. The company has since sold its shares in enCore Energy Corp.

Since 2007, Westwater Resources had invested in exploration and development of its uranium projects in Turkey, namely in Temrezli and Sefaatli. The government of Turkey maintains that all permits granted to the company for Uranium exploration were "issued by mistake." Experts have estimated that the Temrezli mine alone would generate revenues of up to $644 million over its life, resulting in a net ROI of $267 million. [13] However, after repeated attempts to make contact with the Turkish government, the company filed a request for arbitration with the International Centre for Settlement of Investment Disputes (ICSID) as a result of Turkey's unlawful actions. [14] Their request was registered and a three-member ICSID panel was formed. [15] On March 3, 2023, the arbitral tribunal issued its final award in the proceeding, requiring Turkey to pay Westwater $1.3 million in damages, reimburse Westwater for its fees and expenses (approximately $3.7 million), and to pay interest as well. [16] On April 14, 2023, Westwater filed a Notice of rectification which seeks to correct an error in the tribunal's calculation, which if granted would increase the award from $1.3 million to $2.8 million. The Republic of Turkey filed a rejoinder on June 14, 2023. [17]

Graphite

In early to mid 2018, Westwater Resources completed the acquisition of Alabama Graphite. Part of that acquisition included the Coosa Graphite Project, held under a long-term lease. It lies about 25 miles southwest of Sylacauga, Alabama and covers 41,900 acres of land at the southern end of the Appalachian Mountains. [18] Westwater anticipates a full scale mining rate of 577,000 short tons per year, at an average grade of 3.2% graphite. Westwater plans to use bulldozers, excavators, loading equipment, and 45-ton haul trucks to bring the material to the processing plant, by which point they will have replaced the outsourced graphite supply with their own. Once at the processing plant, the metallurgical process of flotation processing will be employed to remove impurities, without damaging the graphite flakes. From there, the graphite will go through multiple rod and ball mill grinders as well as additional flotation units. [19]

As for turning the natural flake graphite into a battery-ready product, Westwater Resources has turned to Dorfner Anzaplan (based in Hirschau, Germany) to define the method, equipment, and operating parameters for graphite purification to the 99.95% threshold. [20]

One potentially lucrative aspect of the Coosa Graphite project is that graphite has been declared a critical strategic mineral by the Department of Defense contractors. Whenever possible, the US military is legally required to use US sourced materials. Therefore, the company has a strong chance of attracting those contractors as customers. [21]

In 2022 the company broke ground at the Kellyton Graphite Processing Facility in Coosa County, Alabama. [22]

In March 2023 they reported equipment being delivered to the Kellyton, Alabama facility. [23]

In 2023 Westwater signed an agreement with SK On to "study and develop over the next three years eco-friendly and high-performance anode materials specialized for SK On batteries". [24]

In 2024 Westwater signed its first offtake agreement with SK On to source a total of 34,000 tons of natural graphite anode products processed at Westwater's Kellyton Graphite Plant for its battery manufacturing facilities in the U.S. [25]

Vanadium

The Coosa Graphite project contains widespread and strong vanadium mineralization in very close association with strong flake graphite deposits, both of which have been listed by the US Geological Survey as Critical Minerals. [26] Vanadium is primarily used as an alloying agent for iron and steel. Currently three countries: China, Russia, and South Africa account for 96% of all Vanadium production. [27] Vanadium is primarily found at the Coosa Graphite Project in the form of Roscoelite, [28] a greenish mineral in the mica group.

Related Research Articles

<span class="mw-page-title-main">Graphite</span> Allotrope of carbon, mineral, substance

Graphite is a crystalline allotrope (form) of the element carbon. It consists of many stacked layers of graphene, typically in the excess of hundreds of layers. Graphite occurs naturally and is the most stable form of carbon under standard conditions. Synthetic and natural graphite are consumed on a large scale for uses in many critical industries including refractories (50%), lithium-ion batteries (18%), foundries (10%), lubricants (5%), among others (17%). Under extremely high pressures and extremely high temperatures it converts to diamond. Graphite's low cost, thermal and chemical inertness and characteristic conductivity of heat and electricity finds numerous applications in high energy and high temperature processes.

<span class="mw-page-title-main">Vanadium</span> Chemical element with atomic number 23 (V)

Vanadium is a chemical element; it has symbol V and atomic number 23. It is a hard, silvery-grey, malleable transition metal. The elemental metal is rarely found in nature, but once isolated artificially, the formation of an oxide layer (passivation) somewhat stabilizes the free metal against further oxidation.

<span class="mw-page-title-main">Uranium mining</span> Process of extraction of uranium ore from the ground

Uranium mining is the process of extraction of uranium ore from the ground. Over 50,000 tons of uranium were produced in 2019. Kazakhstan, Canada, and Australia were the top three uranium producers, respectively, and together account for 68% of world production. Other countries producing more than 1,000 tons per year included Namibia, Niger, Russia, Uzbekistan and China. Nearly all of the world's mined uranium is used to power nuclear power plants. Historically uranium was also used in applications such as uranium glass or ferrouranium but those applications have declined due to the radioactivity and toxicity of uranium and are nowadays mostly supplied with a plentiful cheap supply of depleted uranium which is also used in uranium ammunition. In addition to being cheaper, depleted uranium is also less radioactive due to a lower content of short-lived 234
U
and 235
U
than natural uranium.

<span class="mw-page-title-main">Uranium mining in the United States</span> Uranium mining industry in U.S.

Uranium mining in the United States produced 224,331 pounds (101.8 tonnes) of U3O8 in 2023, 15% of the 2018 production of 1,447,945 pounds (656.8 tonnes) of U3O8. The 2023 production represents 0.4% of the uranium fuel requirements of the US's nuclear power reactors for the year. Production came from five in-situ leaching plants, four in Wyoming (Nichols Ranch ISR Project, Lance Project, Lost Creek Project, and Smith Ranch-Highland Operation) and one in Nebraska (Crowe Butte Operation); and from the White Mesa conventional mill in Utah.

<span class="mw-page-title-main">Uranium mining in Colorado</span>

Uranium mining in Colorado, United States, goes back to 1872, when pitchblende ore was taken from gold mines near Central City, Colorado. The Colorado uranium industry has seen booms and busts, but continues to this day. Not counting byproduct uranium from phosphate, Colorado is considered to have the third largest uranium reserves of any US state, behind Wyoming and New Mexico.

<span class="mw-page-title-main">Uranium mining in Utah</span>

Uranium mining in Utah, a state of the United States, has a history going back more than 100 years. Uranium mining started as a byproduct of vanadium mining about 1900, became a byproduct of radium mining about 1910, then back to a byproduct of vanadium when the radium price fell in the 1920s. Utah saw a uranium boom in the late 1940s and early 1950s, but uranium mining declined in the 1980s. Since 2001 there has been a revival of interest in uranium mining, as a result of higher uranium prices.

<span class="mw-page-title-main">Uranium mining in Arizona</span>

Uranium mining in Arizona has taken place since 1918. Prior to the uranium boom of the late 1940s, uranium in Arizona was a byproduct of vanadium mining of the mineral carnotite.

Uranium mining in New Mexico was a significant industry from the early 1950s until the early 1980s. Although New Mexico has the second largest identified uranium ore reserves of any state in the United States, no uranium ore has been mined in New Mexico since 1998.

<span class="mw-page-title-main">Mining industry of Nigeria</span>

The mining of minerals in Nigeria accounts for only 0.3% of its gross domestic product, due to the influence of its vast oil resources. The domestic mining industry is underdeveloped, leading to Nigeria having to import minerals that it could produce domestically, such as salt or iron ore. The rights to ownership of mineral resources is held by the Federal Government of Nigeria, which grants titles to organizations to explore, mine, and sell mineral resources. Organized mining began in 1903, when the Mineral Survey of the Northern Protectorates was created by the British colonial government. A year later, the Mineral Survey of the Southern Protectorates was founded. By the 1940s, Nigeria was a major producer of tin, columbite, and coal. The discovery of oil in 1956 hurt the mineral extraction industries, as government and industry both began to focus on this new resource. The Nigerian Civil War in the late 1960s led many expatriate mining experts to leave the country. Mining regulation is handled by the Ministry of Solid Minerals Development, who are tasked with the responsibility of overseeing the management of all mineral resources in Nigeria. Mining law is codified in the Federal Minerals and Mining Act of 1999. Historically, Nigeria's mining industry was monopolized by state-owned public corporations. This led to a decline in productivity in almost all mineral industries. The Obasanjo administration began a process of selling off government-owned corporations to private investors in 1999. The Nigerian Mining Industry has picked up since the "Economic Diversification Agenda", from Oil & Gas, to Agriculture, Mining, etc., began in the country.

The mineral industry of Russia is one of the world's leading mineral industries and accounts for a large percentage of the Commonwealth of Independent States' production of a range of mineral products, including metals, industrial minerals, and mineral fuels. In 2005, Russia ranked among the leading world producers or was a significant producer of a vast range of mineral commodities, including aluminum, arsenic, cement, copper, magnesium compounds and metals, nitrogen, palladium, silicon, nickel and vanadium.

<span class="mw-page-title-main">Mining in Namibia</span>

Mining is the biggest contributor to Namibia's economy in terms of revenue. It accounts for 25% of the country's income. Its contribution to the gross domestic product is also very important and makes it one of the largest economic sectors of the country. Namibia produces diamonds, uranium, copper, magnesium, zinc, silver, gold, lead, semi-precious stones and industrial minerals. The majority of revenue comes from diamond mining. In 2014, Namibia was the fourth-largest exporter of non-fuel minerals in Africa.

<span class="mw-page-title-main">Mining industry of the Central African Republic</span>

The Central African Republic's mineral resource endowment includes copper, diamond, gold, graphite, ilmenite, iron ore, kaolin, kyanite, lignite, limestone, manganese, monazite, quartz, rutile, salt, tin, and uranium. Of these commodities, only diamond and gold were produced in 2006 - subsistence farming was the mainstay of the economy.

The world's largest producer of uranium is Kazakhstan, which in 2019 produced 43% of the world's mining output. Canada was the next largest producer with a 13% share, followed by Australia with 12%. Uranium has been mined in every continent except Antarctica.

Mining in North Korea is important to the country's economy. North Korea is naturally abundant in metals such as magnesite, zinc, tungsten, and iron; with magnesite resources of 6 billion tonnes, particularly in the North and South Hamgyong Provinces, as well as the Chagang Province. However, often these cannot be mined due to the acute shortage of electricity in the country, as well as the lack of proper tools to mine these materials and an antiquated industrial base. Coal, iron ore, limestone, and magnesite deposits are larger than other mineral commodities. Mining joint ventures have occurred with other countries include China, Canada, Egypt, and South Korea.

The Molo mine is one of the largest graphite mines in Madagascar. The mine is located in Atsimo-Andrefana, near the town of Fotadrevo. The deposit was discovered in 2011, following explorations of the nearby Green Giant mine. The mine has reserves amounting to 120 million tonnes of ore grading 8% graphite metal. The mine is owned by NextSource Materials Inc, which obtained a 40-year mining license from the Madagascar government in 2019. The mine is being financed by Vision Blue Resources Limited, a battery materials investment company founded by Mick Davis. The mine has agreements to supply graphite to ThyssenKrupp, and intends to build a graphite battery anodes to sell to Tesla. As of 2021, the necessary equipment for the mine is in the process of being assembled and delivered.

The Green Giant mine is one of the largest vanadium mines in Madagascar. The mine is located in Betioky Sud in Atsimo-Atsinanana. The mine has reserves amounting to 59.2 million tonnes of ore grading 0.68% vanadium. In August of 2007, the Canadian company Uranium Star Corp announced an agreement where it would buy a 75% ownership stake in the mine from Madagascar Minerals and Resources Sarl, and then bought full ownership in 2009. An aerial survey was conducted in 2007 and samples were drilled in 2008. Uranium Star Corp rebranded as Energizer Resources Inc in December 2009, and then as NextSource Materials Inc in April 2017. The mine is 11 kilometers from the Molo mine, which is also owned by NextSource.

<span class="mw-page-title-main">Mining industry of Guinea</span>

The mining industry of Guinea was developed during colonial rule. The minerals extracted consisted of iron, gold, diamond, and bauxite. Guinea ranks first in the world in bauxite reserves and 6th in the extraction of high-grade bauxite, the aluminium ore. The mining industry and exports of mining products accounted for 17% of Guinea's gross domestic product (GDP) in 2010. Mining accounts for over 50% of its exports. The country accounts for 94% of Africa's mining production of bauxite. The large mineral reserve, which has mostly remained untapped, is of immense interest for international firms.

In 2015, 27.6 million metric tons of marketable phosphate rock, or phosphorite, was mined in the United States, making the US the world's third-largest producer, after China and Morocco. The phosphate mining industry employed 2,200 people. The value of phosphate rock mined was US$2.2 billion.

<span class="mw-page-title-main">Paramontroseite</span>

Paramontroseite (V4+O2) is a relatively rare orthorhombic vanadium oxide mineral in the Ramsdellite Group. Synthetic paramontroseite may have applications in medicine, batteries and electronics.

<span class="mw-page-title-main">Alamos Gold</span> Canadian gold mining company

Alamos Gold Inc. ("Alamos") is a Canadian multinational gold producer, headquartered in Toronto, Canada. Alamos operates three mines across North America, and has six further projects in development.

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