Which Countries Could Source Uranium for the New Mexico Enrichment Facility?
By: James Finch | Posted: 24th July 2006
We asked Louisiana Energy Services (LES) President Him Ferland if the uranium could come from Kazakhstan, Niger, Namibia or elsewhere. He couldn't say from where, "Again, it's coming from the U.S. utilities. I'm sure the U.S. utilities will comply with whatever laws or regulations that are out there, about where the source material can come from."
Julian Steyn shed some light on the subject, "The uranium that gets sent to New Mexico's LES plant for enrichment will probably come from many countries around the world, including the US, Canada, Australia, Niger, Uzbekistan, and Kazakhstan. The last named country is fast becoming a major supplier."
Based upon what both are saying, uranium to be enriched could come from anywhere. In fact, on January 27th of this year, John Borshoff, managing director of Australian-based Paladin Resources (TSX: PDN), announced securing a sales contract from an unspecified U.S. utility for the purchase of more than 2 million pounds of U3O8 for delivery between 2007 and 2012. The uranium would come from the company's Langer Heinrich uranium mine in Namibia, which has been scheduled to be opened this September.
Some thirty kilometers away is Rio Tinto's Rossing uranium mine, in which ironically the country of Iran continues to own a minority interest. Could Namibian uranium be heading for the New Mexico's future uranium enrichment facility? As Ferland reminded us, "I don't know at this point." Ferland added, "As far as LES is concerned, it is being delivered by the utilities to our site."
When we asked Uranium Producers of America Executive Director Jon Indall about the LES entry into New Mexico, he told us, "They're welcome in New Mexico, as long as it is U.S. uranium they are enriching." Indall, a highly respected attorney who is based in Santa Fe, is eager to help rebuild the U.S. uranium industry.
We posed his comments to Ferland, who responded, "There is very little uranium mined in the U.S. But, I sure hope that there will be, whether it is mined in Arizona, Colorado, Wyoming, New Mexico, or wherever. If the U.S. wants to be energy independent, and we want nuclear to be a part of that, then we probably need to have some mines re-opened in this country."
Strathmore Minerals President David Miller was quick to respond, "We are through the prefeasibility phase on some of our uranium properties. By the time LES reaches full capacity in 2013, we could be producing more than two million pounds per year." Miller pointed out the speed of the permitting process will mainly determine how quickly his company surpasses the two-million production level.
Other companies, developing properties in New Mexico, Wyoming and Texas, would also contribute between one and two million pounds of uranium in the years leading up to the National Enrichment Facility reaching full capacity.
James Finch contributes to StockInterview.com and other publications. The entire article can be read at StockInterview's website – http://www.stockinterview.com
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James Finch is a contributing editor for StockInterview.com and other publications. http://www.stockinterview.com
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