JohnIrag, Wyoming describes fast track process.
Wyoming Politicians, Regulators Eager to Fast Track ISL Mining Operations
Submitted Monday, March 06, 2006
Submitted by: JamesFinch
StockInterview.com
While other states’ politicians are wondering how to keep their voters employed, Wyoming ’s mining companies are scrambling to find workers for their projects. According to Matt Grant, Assistant Director of the Wyoming Mining Association, “The mining industry has at least 700 job openings right now." He added, “Those are direct jobs. If you include the service industry jobs, for which there is a ratio of three service industry jobs for every direct job, then the real number is closer to 2,800."
Grant explained that an unskilled worker could start tomorrow with an annual salary of $44,000. “A skilled electrician can make up to $100, 000 per year," Grant confided. Living in Wyoming isn’t expensive, and of course, energy costs are somewhat lower. Right now, Campbell County ’s Chamber of Commerce, the Casper Area Development company, and Sweetwater County ’s job recruiters are slugging it out to find laid off auto workers for the increasing number of job openings this state offers. As Wyoming ’s Secretary of State Joe Meyers told StockInterview.com, “If the companies are going to build uranium plants, tell them to bring their own workers. There’s none here."
With a rising spot uranium price, and Wyoming “suddenly" becoming in vogue again, Wyoming politicians are celebrating. Grant re-iterated the oft-quoted uranium oxide (U3O8) figure for Wyoming ’s reserves: 300 million at $50/pound. In the intriguing, and yet confusing, method in which the Energy Information Agency calculates ore body reserves for uranium, the higher the price of uranium, the more the reserves. It doesn’t matter, though, because Wyoming has plenty of uranium.
How Wyoming Politicians Feel About Uranium Mining
State legislator, Dave Edwards, who represents Douglas, the nearest town to Cameco’s Power Resources’ operation at the Smith-Highland ranch, where uranium is ISL mined, remarked on the wild frenzy of staking for uranium claims in Wyoming , “We are already feeling the effects. It’s good for the real estate market." But how does he feel about uranium mining for those who voted him into office? “It does provide high-quality jobs," he responded. “If there were no uranium mining, there would be a big impact." Edwards, a former Navy pilot with more than 1,000 jet landings on aircraft carrier, during the Vietnam War, doesn’t believe all the myths about the dangers of uranium mining, “I’ve not heard any talk from any of my constituents about how dangerous uranium mining is. I think people have common sense. I think people understand what nuclear power really is, and when properly taken care of, there is no need for hysteria. It’s just not going to blow up anybody’s brain or screw up any children. We’re at that point in mining and using uranium."
That’s quite a contrast from those who say “not in my backyard," as was sometimes heard by the less well educated in rural New Mexico, when talking about uranium mining. Edwards spoke frankly about the Smith Ranch uranium operation, “One of the best things in Converse County we have is the ‘in situ’ (ISL) mining uranium operation on the Smith Ranch. It’s done by Power Resources, and they do a very nice job of it." Edwards has, from time to time, toured the Smith Ranch facility to inspect the uranium mining operation and gives Cameco the thumbs up, “The uranium metal never hits the air space. It is enclosed, virtually from the time it comes out of the ground until it is put in a barrel, loaded into a truck and hauled off."
Senator Robert Peck, who represents the Riverton area, and also publishes the Riverton Ranger newspaper, is savvy to the uranium industry. One acquaintance told StockInterview.com that it was Senator Peck’s earlier successes in the uranium business that paid for his house and his nest egg. He believes there is still growth ahead for Wyoming ’s uranium industry. Responding to whether there is any uranium left in Wyoming after the massive extractions of the past 50 years, Peck answered, “There’s lots left." He remarked upon Cameco’s Power Resources subsidiary, “Their largest resource of their many holdings, around Wyoming , is in the Gas Hills. That was the center of uranium production for over a thirty year period. There were three uranium mills there and they still show 50 to 60 million pounds of recoverable uranium in the Gas Hills proven by previous drilling."
How does Peck envision the uranium industry in Wyoming playing out, over the next decade? “I think we are going to see three or four companies that are comfortable with, and knowledgeable about, uranium and nuclear power running the show in the uranium resurgence." He likes Cameco, that’s for sure. “I see Cameco just becoming better and better positioned with uranium mining, and uranium fabrication of fuels. They are in the entire cycle, as well as having big operations in Kazakhstan , where they will be producing a significant amount of uranium there. In the mean time, they think they’ve got the best uranium reserves in Wyoming already with what they picked up during the down period, including the Gas Hills remaining reserves."
Peck also has kind words for Strathmore Minerals (TSX: STM). “Strathmore Minerals has got properties all around the country and the world, too, but they’re not in production yet," Senator Peck said. “They are gathering capital and deciding where to best invest this capital, where it will have the best chance of a successful payoff. They’re getting in from the ground up for uranium production."
Wyoming could become a relatively steady uranium producer, but it won’t be the good old days. “We’re not going to be up to where we were at the peak, when we produced 150 million pounds," Senator Peck admitted. “We’re going to be up to 4 million pounds per year, which is going to make a solid, but significantly smaller industry. I don’t think we’re going to see the days when we used to have the greatest collection of Caterpillar scrapers in the world, out here moving millions of yards of dirt in the Gas Hills to go down 300 or 400 feet, to get to the roll fronts."
Senator Peck is very clear about his views on nuclear power, “I think the future of the nuclear industry is very bright. I see the utilities are gaining courage. We’re going to see the next generation nuclear power stations stepping forward and getting permitted right alongside existing power plants, where people are used to them and comfortable with them." And what is his take on the spot uranium price? “We’re seeing the emerging nations like India , China , Korea , and others looking to nuclear for a significant portion of their energy needs," he said. Senator Peck’s uranium price forecast? “As the price keeps rising, we’ll see $40 to $45/pound uranium."
Wyoming’s Fast Track Permitting Process
The first stop, after a junior uranium company assembles its claims package and begins getting down to serious business, is Wyoming ’s Department of Environmental Quality (DEQ). That’s what John Corra of Wyoming ’s director of that state agency told StockInterview.com it should be, “Come see us early. We think we can help people a lot. The permitting process can be frustrating as all get out. Communicating with the DEQ early and often will help us help them." Those were the advices rendered by both John Corra, and Wyoming ’s Administrator of the Land Quality Division, Rick Chancellor. Both clearly announced they were eager to work with every uranium development company desiring to put an ISL operation into place in Wyoming .
We mentioned that companies, such as UR-Energy (TSX: URE), Energy Metals (TSX: EMC) and Uranerz Energy (OTC BB: URNZ), were hoping to have an ISL permit between 2008 and 2010. “For those companies who say they may have a permit by 2008, it behooves them to come and talk to us before they start gathering the baseline to make sure they got it right," Chancellor cautioned. “Otherwise, they may waste the whole year gathering baseline and find out they didn’t sample for the right stuff." Chancellor explained a company needs to have full disclosure of about a year of baseline data. “You want to know the quality of the water inside and outside the ore zone so that water can be properly classified," Chancellor said. “We’re looking for all the constituents, the physical properties, chemical properties, whatever metals are in there."
Chancellor, who has served in Wyoming ’s DEQ for the past 25 years, outlined the baseline study process, “We classify the groundwater, based upon the baseline studies. We have regulations on how that is done. They have to restore that water to reach that class of use that was pre-mining." But he also warned all uranium companies, “They should make sure their plan for baseline gathering meets our requirements. We stress they can save a lot of time by coming in and letting us know what their operation is about. So when someone comes in, we already have an idea of what they are planning to do."
How long does it take before the frustrating process of permitting comes to closure? Chancellor responded, “It takes about a year to go through that part of the permitting process. It depends upon how responsive a company is to our request for information. Sometimes, they may take 3 months to respond back to our comments. That just drags out." He quickly added, “The permitting process could be faster at the Powder River Basin , or in areas where there has been ISL mining." John Corra agreed, chiming in, “Anywhere where there has been existing activity, or existing exploration, and there’s a fair amount of data for us to make our decisions, then it will go faster."
Does Wyoming ’s DEQ move fast? “We may respond in 45 days because of our in-box stack. It may only take 3 days to review it, but it may take 42 days to work down to it. It depends upon the work load at the time, but we try to get back to them within 45 days, 60 days at the most." Corra helpfully offered, “If some operation has an issue, and a tight timeline, we will always sit down and talk to them to understand what that is. We’ll try to work with them. Otherwise, it is first come, first served. That’s the only fair way." He added, “The DEQ is always trying to find a way to make things happen, to enable things without sacrificing the environment. And we’ll try to help."
What additional advice does John Corra have for the growing number of uranium companies, hoping to develop an ISL operation in Wyoming ? “The other thing we encourage them to do is get ahold of local governments: the county and the municipalities in the area," he counseled. “Just make contact with those entities. Do the on-the-ground stuff and be a good neighbor. If you can be a good neighbor, your life is going to be a lot easier." Corra explained how recently one overly ambitious uranium exploration company had begun staking a sub-division near Douglas , Wyoming , without having the mineral rights. That had been causing a laugh around Cheyenne in the latter half of February. Secretary of State Joe Meyer, whose office had investigated the incident said, “It was a good thing they left and don’t plan to return." Corra repeated his advice, “It is important for these companies to make sure they know what else is going on in the area where they are proposing to put their operations."
Having spent his life working in the minerals industry, and only recently having joined the DEQ, John Corra stressed, “We have some of the cleanest air and cleanest water in the nation. We intend to keep it that way." But his voice mellowed, saying, “As an agency, we have some pretty stringent requirements. It is doable, but it’s pretty serious business. It’s a tough, but doable process. We don’t want to scare anybody off."
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