U.S. Uranium Industry to Produce 20 Million Pounds by 2012, Part 3
StockInterview: Yes, but doesnt it take five to eleven years to get the production underway?
Jon Indall: I think eleven years is too far out. I think, if the companies can get with it, you can see four or five In Situ Recovery (ISR) operations producing one to two million pounds apiece. And then maybe somebody gets a conventional mine going here again, like IUC is doing. I cant tell you the exact number, but I think youll see increased production, assuming that the price continues to rise or stabilize.
StockInterview: How are the uranium companies going to move that fast?
Jon Indall: I think a lot of it, in my mind, is how well the regulatory community accepts what these guys are trying to do. My impression is – and this is just me talking – that a lot of the communities, where this activity has been undertaken before, are not averse to seeing it again. It means good jobs and that type of thing. A lot of these communities are sort of depressed communities. For example in New Mexico, McKinley County is one of the lowest counties in the state economically. I think the average guy out there would welcome the opportunity to see some high paying jobs.
StockInterview: How well would the regulatory community in New Mexico react?
Jon Indall: I recently met with the New Mexico Mining Minerals Division. Since we passed the New Mexico Mining Act in 1993, no one has permitted a mine in New Mexico. We were talking about how we were going to do this. Obviously its not going to happen tomorrow.
StockInterview: What about senior state officials, such as the Governor of New Mexico?
Jon Indall: I can tell you the New Mexico governor was extremely supportive of the uranium miners when he was in Congress. He introduced legislation supporting our efforts in those days, and some of it he did on his own. Hes got a big state to govern, and I think hes looking for jobs. I think if we can show him that we can do this better than we did in the past, then hell be supportive. Thats my hope.
StockInterview: Will the major oil or mining companies return to the uranium industry?
Jon Indall: I dont anticipate the big oil companies coming in again for some time. BHP Billiton initially said, We have no interest in uranium mining in New Mexico. Then they turned around and bought the biggest property in Australia. Now I understand BHP is looking hard at their New Mexico operations. So you might see some of the big mining companies involved.
StockInterview: Who, then, will build up the domestic uranium industry?
Jon Indall: I think it may be more entrepreneurial, which was the way it started back in the 1950s. The early producers, with the exception of Kerr McGee, were individuals – Charlie Steen, Dick Bokum, and Cotter Ferguson in Wyoming. They were the people who really got this industry up and going, with AEC assistance. I am not sure the oil companies are that critical, but I would like to see utilities get into the mix. I think it all depends on how supply and demand is perceived.
StockInterview: How should the major uranium producers, such as Cameco or BHP, deal with the impact of a potential supply shortage for U.S. utilities?
Jon Indall: BHP and Cameco are aggressively trying to increase their production. They wouldnt be doing that if they didnt think there was a market for it. The U.S. market and the U.S. government are so critical to the health of all suppliers, in my opinion, because our government has done more to help and harm domestic and worldwide production than any other entity. I think foreign producers would be wise to recognize that having a viable U.S. industry, which senators and the congressmen care about, because theyre creating jobs and income in their states, is not a bad thing. I think it keeps DOE honest. To me, if I were sitting up in Canada, this would be something I might be looking at.
StockInterview: What should U.S. utilities be looking at, with regards to the supply picture?
Jon Indall: Youve got the Russians announcing theyre not going to proceed with the HEU agreement after 2013. It is my understanding theyre looking to beef up supply for thems…
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