CASPER (WNE) — Ur-Energy Inc. on Thursday announced it has started uranium mining at its Shirley Basin site in Carbon County, expanding U.S. production of the fuel used for nuclear energy.

The company is now collecting uranium from its first mining area after finishing construction and getting the necessary permits, officials said in a news release. Production is expected to grow as more parts of the operation begin running. 

The uranium will be shipped later this summer to the company’s Lost Creek facility for final processing, pending final approval from regulators.

The Shirley Basin site is approved to produce up to 2 million pounds of uranium per year. The area is estimated to hold about 9.1 million pounds of uranium resources and is expected to operate for roughly nine years.

Company leaders said the start of production marks an important step as Ur-Energy brings its second mining operation into service, according to the news release.

“Launching initial operations marks a pivotal achievement in Ur-Energy’s growth strategy and plan to expand U.S. uranium production capacity. Two years ago, we committed to building out this project,” the company’s president and CEO, Matt Gili, said in the news release. “Today, we have successfully brought a historically significant uranium district back to life, demonstrating disciplined execution of our strategy.

“It is particularly meaningful as it supports the growing need for secure, domestic uranium supply and underscores our ability to move permitted projects toward production while strengthening our role in the U.S. nuclear fuel cycle,” Gili said.