U.S. Uranium Industry to Produce 20 Million Pounds by 2012, Part 3

StockInterview: Yes, but doesn't it take five tobiggest property in Australia. Now I understand BHP is
eleven years to get the production underway?looking hard at their New Mexico operations. So you
Jon Indall: I think eleven years is too far out. I think,might see some of the big mining companies involved.
if the companies can get with it, you can see four orStockInterview: Who, then, will build up the domestic
five In Situ Recovery (ISR) operations producing oneuranium industry?
to two million pounds apiece. And then maybeJon Indall: I think it may be more entrepreneurial,
somebody gets a conventional mine going here again,which was the way it started back in the 1950s. The
like IUC is doing. I can't tell you the exact number,early producers, with the exception of Kerr McGee,
but I think you'll see increased production, assumingwere individuals - Charlie Steen, Dick Bokum, and
that the price continues to rise or stabilize.Cotter Ferguson in Wyoming. They were the people
StockInterview: How are the uranium companieswho really got this industry up and going, with AEC
going to move that fast?assistance. I am not sure the oil companies are that
Jon Indall: I think a lot of it, in my mind, is how wellcritical, but I would like to see utilities get into the
the regulatory community accepts what these guysmix. I think it all depends on how supply and demand
are trying to do. My impression is - and this is just meis perceived.
talking - that a lot of the communities, where thisStockInterview: How should the major uranium
activity has been undertaken before, are not averseproducers, such as Cameco or BHP, deal with the
to seeing it again. It means good jobs and that typeimpact of a potential supply shortage for U.S. utilities?
of thing. A lot of these communities are sort ofJon Indall: BHP and Cameco are aggressively trying to
depressed communities. For example in New Mexico,increase their production. They wouldn't be doing that
McKinley County is one of the lowest counties in theif they didn't think there was a market for it. The U.S.
state economically. I think the average guy out theremarket and the U.S. government are so critical to the
would welcome the opportunity to see some highhealth of all suppliers, in my opinion, because our
paying jobs.government has done more to help and harm
StockInterview: How well would the regulatorydomestic and worldwide production than any other
community in New Mexico react?entity. I think foreign producers would be wise to
Jon Indall: I recently met with the New Mexico Miningrecognize that having a viable U.S. industry, which
Minerals Division. Since we passed the New Mexicosenators and the congressmen care about, because
Mining Act in 1993, no one has permitted a mine inthey're creating jobs and income in their states, is not
New Mexico. We were talking about how we werea bad thing. I think it keeps DOE honest. To me, if I
going to do this. Obviously it's not going to happenwere sitting up in Canada, this would be something I
tomorrow.might be looking at.
StockInterview: What about senior state officials,StockInterview: What should U.S. utilities be looking
such as the Governor of New Mexico?at, with regards to the supply picture?
Jon Indall: I can tell you the New Mexico governorJon Indall: You've got the Russians announcing they're
was extremely supportive of the uranium minersnot going to proceed with the HEU agreement after
when he was in Congress. He introduced legislation2013. It is my understanding they're looking to beef
supporting our efforts in those days, and some of itup supply for themselves. With the utilities, I think it's
he did on his own. He's got a big state to govern,kind of 'wait and see' right now. I think that they're
and I think he's looking for jobs. I think if we canlooking at this from the big picture. I think it's
show him that we can do this better than we did inbecoming more evident to them nuclear has got to
the past, then he'll be supportive. That's my hope.play an ever increasing role. Global warming is really
StockInterview: Will the major oil or mining companiesdriving a lot of boats here, and I think they're realizing
return to the uranium industry?there has to be a real active nuclear power plant
Jon Indall: I don't anticipate the big oil companiesproduction increase.
coming in again for some time. BHP Billiton initially said,StockInterview: How are things differently now for
'We have no interest in uranium mining in Newthe Uranium Producers of America compared to the
Mexico.' Then they turned around and bought theearly days in the 1980s?