Westwater Resources Inc (NASDAQ:WWR) expressed happiness after the US Environmental Protection Agency (EPA) withdrew a rule change that it proposed last year for the restoration of groundwater. According to the energy materials development company, the rule did not allow new protection for the environment but only wanted to raise costs for the uranium industry.
Affirmation from Environmental Protection Agency looks promising
The company at present is busy completing the reclamation process at two of its sites. The withdrawal of rule change by the Environmental Protection Agency at this juncture seems to be working in favor of Westwater. It indicates that the ongoing work of the company that involves reclaiming operations in the future will not be in any way affected by such poorly designed rules.
These do not offer any positive impact on the quality of groundwater and only lead to the hike in restoration costs. The company remains committed to its principle of keeping the environment and public at the place of operations safe and complying with the effective and sensible rules.
On October 19, 2018, EPA stated that its existing rules for the groundwater restoration were adequate for protecting public health and keeping them safe from the non-radiological and radiological hazards associated with the ore processing of thorium and uranium.
In his statement, the acting administrator of EPA said, “The Nuclear Regulatory Commission has regulated in-situ uranium recovery for nearly 40 years. The agency has never found an instance of groundwater contamination that would be addressed by this rule.” He declared that the proposed rule change as punishing and unnecessary on uranium producers.
The President of the National Mining Association, Hal Quinn stated that the rule did not articulate a risk justifying the rulemaking. He further added that the rule ignored the need for underestimated compliance costs, realistic cost-benefit analysis, and its impact on small businesses.
Rise in share prices of Westwater
According to the latest stock market report the share prices of Westwater spiked by 4.8% with the stock trading at $0.24. During the midday trading around 142,554 shares exchanged hands. The firm that is rejoicing after the removal of a proposed rule change by the Environmental Protection Agency currently has a market cap of $10.11 million.