Peninsula Energy shares rise after Trump approves budget funding for US strategic uranium reserve

Peninsula Energy Ltd (ASX:PEN) shares are trading about 10% higher intra-day at 12 cents after the US President Donald Trump approved the Omnibus Budget Bill which amongst other priorities funds the establishment of a US National Strategic Uranium Reserve. The approved budget directs the US Department of Energy (DOE) to allocate US$75 million toward the establishment of a program to operate a uranium reserve. Welcome boost for the uranium mining sector The uranium reserve is being established as a manifestation of this administration’s stated priority of preserving existing assets of US nuclear infrastructure. This program provides a welcome boost for the uranium mining sector, and Washington is expected to build on this program over the coming years. It comes on the heels of the 20-year extension and amendment of the Russian Suspension Agreement which strengthens the limitations on the importation of Russian uranium. The budget bill also contains language that provides a Congressional backstop to this important trade agreement, establishing long term protections for American Energy Security. “Supporting and expanding the domestic production of nuclear fuel” Peninsula managing director and chief executive officer Wayne Heli said: “Creation of a uranium reserve is truly a groundbreaking initiative for our industry and our nation. “The reserve program will go a long way toward supporting and expanding the domestic production of nuclear fuel in 2021 and beyond. “We look forward to working with the U.S. DOE to ensure this funding strategically supports established production companies with permitted facilities and infrastructure. “The budget approval, and other recent bipartisan legislative actions recognize the importance of nuclear energy in the generation of baseload, carbon-free electricity.”