| Nowhere was it more evident of battle
| |
| | uranium grade at the commencement of the
|
| lines being drawn between suppliers and
| |
| | solution mining. Newton pointed out that
|
| end users in the nuclear fuel sector than
| |
| | in the United States head grades are
|
| at the Platts Second Annual Nuclear Fuel
| |
| | about 100 parts per million (ppm) of
|
| Strategies conference on September 26th.
| |
| | uranium. At Crowe Butte (Nebraska), Power
|
| Since April, various utility consultants
| |
| | Resources is getting 43 ppm.By
|
| and fuel brokers have routinely contacted
| |
| | comparison, the head grades in Kazakhstan
|
| StockInterview to 'talk down' the uranium
| |
| | reach 250ppm and are averaging over
|
| price. Frequent is the mantra about how
| |
| | 200ppm. While the deposits are deeper,
|
| speculators and hedge funds are driving
| |
| | down to 1500 feet, Cameco will be
|
| the spot uranium price higher. But spot
| |
| | drilling about five times fewer wells
|
| uranium and long-term contracts march
| |
| | because of those exemplary ppms. The cost
|
| higher each month. While utilities appear
| |
| | per well will be more expensive, but
|
| complacent, there is now an underlying
| |
| | there will be less wells to drill. Of
|
| panic lurking beneath the surface.About
| |
| | course, there are shortages of drill
|
| an hour after UxC announced Tuesday's
| |
| | rigs, which adds another frustrating
|
| weekly spot price hike - now to $54
| |
| | twist to mining in this country.To mine
|
| pound, Rajiv Kundalkar, Vice President of
| |
| | these deposits by the in situ leach
|
| Nuclear Engineering for Florida Power and
| |
| | method, Cameco/Power will need about 40
|
| Light took the podium in the Pavilion
| |
| | kilograms of sulphuric acid to produce
|
| Room of the Ronald Reagan Building in
| |
| | one kilogram of uranium. Newton bluntly
|
| Washington, D.C. to pound the table as to
| |
| | announced, "To mine 100 metric tons of
|
| why uranium prices should take a dive. As
| |
| | uranium will require 40 million kilograms
|
| Mr. Kundalkar progressed through his
| |
| | of sulphuric acid." He explained this
|
| presentation, many in the audience
| |
| | annually amounted to 2200 truckloads of
|
| wondered if he was the industry's latest
| |
| | sulphuric acid - about six truckloads per
|
| sacrificial lamb. Kundalkar galloped out
| |
| | day. Every day year 'round.From where
|
| of the presentation room within moments
| |
| | will Cameco get this vast amount of
|
| after he answered the final
| |
| | sulphuric acid? Newton explained there
|
| question.Clearly Kundalkar's audience
| |
| | were literally mountains of sulphur waste
|
| disagreed with his conclusions of a
| |
| | remaining from the high-sulfur Caspian
|
| uranium price downturn, sometime in 2007.
| |
| | oil production. From there one could
|
| Questioning after his presentation could
| |
| | obtain sulphuric acid. He acknowledged
|
| be summarized in one word: brutal. It was
| |
| | Cameco, Areva or the Kazakhs would first
|
| because Kundalkar argued the uranium
| |
| | need to build several sulphuric acid
|
| price was artificially high due to a
| |
| | plants. His best-case scenario for such a
|
| perception of tight supply.He compared
| |
| | plant would be in five years. On the
|
| uranium's spectacular price rise over the
| |
| | worst case scenario, Fletcher skirted the
|
| past six years to the jump in palladium
| |
| | issue, explaining the Kazaks needed to
|
| prices. Kundalkar concluded palladium
| |
| | streamline their operations.And therein
|
| rose and fell, and so should uranium. He
| |
| | one finds the headaches. The
|
| particularly emphasized the collapse of
| |
| | infrastructure is lacking. New roads will
|
| palladium mining stocks, which fell after
| |
| | have to be built to replace the 'camel
|
| the underlying commodity sunk lower.He
| |
| | trails' and truck the material from the
|
| explained there was an abundant supply of
| |
| | mining operation to the processing
|
| uranium from Canada, Australia and
| |
| | facility. The Kazaks aren't quite ready
|
| Kazakhstan, both now and especially in
| |
| | for all those trucks. Newton explained
|
| the coming years. Kundalkar pointed out
| |
| | the arrival of traffic jams in this
|
| that delays in the licensing of new
| |
| | backward nation, adding an anecdote about
|
| reactors in China and India would
| |
| | a recent traffic accident resulting in a
|
| suppress the demand for uranium. He added
| |
| | fatality. While we take these for
|
| that Cigar Lake, Olympic Dam and
| |
| | granted, it is an unusual development in
|
| Kazakhstan would provide sufficient
| |
| | the backcountry areas of Kazakhstan where
|
| uranium to meet the Western World
| |
| | animals are the primary transportation
|
| requirements.Rather than blink at the
| |
| | mode. Yet another headache: new
|
| short-term rise in uranium, Kundalkar
| |
| | transmission lines will also be required
|
| explained away any concern about the
| |
| | to generate the electricity to run the
|
| soaring fuel costs by announcing Florida
| |
| | operations.Newton discussed the weather.
|
| Power and Light was pursuing long term
| |
| | Similar to northern Wyoming, he called
|
| strategies and cost-control initiatives.
| |
| | the weather "a fast changing climate." He
|
| One such plan was to make reactors more
| |
| | showed his audience a slide of tall snow
|
| efficient. On the initiative that his
| |
| | drifts, explaining the snowstorm produced
|
| plants would become more efficient, one
| |
| | this much snow in 45 minutes. In the
|
| must wonder what maximum capacity those
| |
| | winter, Cameco has learned to keep
|
| reactors can endure. Ten years ago,
| |
| | bulldozers nearby to dig out of the heavy
|
| nuclear power plants ran 75 percent
| |
| | snowfall. In the summer, roads need
|
| capacity. Presently, they are being
| |
| | rebuilt from the flooding.A more serious
|
| pushed to their limits above 90 percent.
| |
| | problem is the labor force. Newton showed
|
| Kundalkar was not forthcoming in any
| |
| | a slide of a cozy Kazak peasant family
|
| details about how his utility would
| |
| | during his presentation. After he spoke,
|
| institute cost-control initiatives.After
| |
| | we talked with him, asking about the
|
| we called him on his three main sources
| |
| | labor force. Newton explained that it
|
| of supply, asking Kundalkar if he had
| |
| | would be peasants such as the one in the
|
| measured the risk variables inherent with
| |
| | slide that would provide the bulk of
|
| those regions, he acknowledged he had
| |
| | labor for Cameco's Kazak operations.
|
| done so. Instead, we lean toward
| |
| | Again, during his presentation he
|
| believing he glibly digested industry
| |
| | referred to most of the country as having
|
| reports, as far too many have done, but
| |
| | one's foot back in the eighteenth or
|
| failed to investigate further or probe
| |
| | nineteenth centuries. We dared not ask
|
| deeper about supply risks. Another
| |
| | him if they still played polo with the
|
| questioned Kundalkar if Florida Power and
| |
| | heads of their enemies as they did in the
|
| Light had participated in the recent
| |
| | movie, "The Man Who Would Be King."What
|
| Department of Energy uranium sale. The
| |
| | will materialize when the Kazak labor
|
| utility had not. He admitted he thought
| |
| | force discovers they need to share in the
|
| the price was too high. Instead, Cameco
| |
| | uranium profiteering? Chilean miners
|
| Corp bought the uranium and quickly
| |
| | struck in August at BHP's Escondida
|
| resold some of it for a profit.Bad News
| |
| | copper mine, the world's largest, this
|
| for Uranium BearsHad he not scrambled
| |
| | past August, citing the steep rise in
|
| away from the conference, Kundalkar might
| |
| | copper prices. BHP hopes to avert another
|
| have been shocked by the disclosures in
| |
| | strike at the nearby Spence project. Teck
|
| the afternoon presentations which
| |
| | Cominco averted a strike Sunday night at
|
| followed him. Had Kundalkar presented his
| |
| | the Highland Valley copper mine in
|
| thesis to a less savvy audience, he might
| |
| | British Columbia by reaching a tentative
|
| have received something more than a
| |
| | contract with the miner's union. As
|
| polite applause when he stepped down.
| |
| | utilities and other uranium bears explain
|
| From the disgruntled audience, one
| |
| | that uranium will become more abundant as
|
| long-time industry consultant asked
| |
| | more companies bring on more projects,
|
| Kundalkar point blank: Have you heard of
| |
| | few are factoring in the rising labor
|
| peak oil?Unwitting denial about supply
| |
| | costs, the variables inherent with
|
| risks has its consequences. The next step
| |
| | developing new infrastructure and the
|
| down the descending staircase for
| |
| | likelihood of delays. Environmentalists
|
| complacent U.S. utilities came from Jim
| |
| | have also begun rearing their heads over
|
| Ferland, head of Louisiana Energy
| |
| | various projects. Few are factoring in
|
| Services (LES). This was Ferland's final
| |
| | this risk. The more active these
|
| appearance on behalf of LES as he has
| |
| | anti-nuclear groups become, the greater
|
| since taken a VP job with Westinghouse.
| |
| | they abet the rising uranium price.The
|
| In his parting speech, Ferland announced
| |
| | Milk AnecdoteBusiness in Kazakhstan is
|
| an anti-nuclear lobbying group had filed
| |
| | not what one finds in the West. Newton
|
| an appeal against LES for their NRC
| |
| | admitted during his presentation that the
|
| license in the District of Columbia
| |
| | Kazaks don't report their uranium
|
| Circuit Court. He warned there was a
| |
| | production as other countries do. For
|
| potential risk of a stay or worse. By
| |
| | example, he discovered from a border
|
| worse, Ferland inferred the uranium
| |
| | guard that Kazakhstan had been shipping
|
| enrichment plant might never operate at
| |
| | about 50 metric tons of uranium oxide to
|
| all. The consequence of 'worse' hung like
| |
| | China every month for several months.
|
| a dark cloud in the room.Should the
| |
| | But, nothing of that had been reported in
|
| appeal be dismissed, Ferland cautioned
| |
| | the media or to organizations, such as
|
| about labor availability in eastern New
| |
| | the World Nuclear Association, which
|
| Mexico. Already, the company is worrying
| |
| | track mining production for each
|
| about higher labor costs and is expecting
| |
| | country.One can not be certain of what to
|
| to go over budget on both plant
| |
| | believe when KazAtomProm issues a
|
| construction and operations. LES may have
| |
| | forecast. Yet, many utilities, such as
|
| difficulty finding an ample supply of
| |
| | Florida Power and Light, swallow these
|
| electrical workers and aluminum welders
| |
| | predictions without a second thought.
|
| necessary for building the National
| |
| | Questioned about Kazak production
|
| Enrichment Facility. He announced that
| |
| | forecasts, Newton responded there were
|
| getting the NRC license was relatively
| |
| | those who had "big thoughts." In the
|
| easy compared to what the company would
| |
| | presentation which followed, by Patricia
|
| go through to construct the enrichment
| |
| | Mohr, Vice President for Economics at
|
| plant.U.S. utilities are counting upon
| |
| | Canada's Scotiabank, she said while the
|
| the new uranium enrichment center for the
| |
| | Kazaks have extremely ambitious plans,
|
| SWU to power their reactors. Will it
| |
| | their timeline was "unrealistic."Newton
|
| arrive on time? No one can say right now,
| |
| | deftly provided the "milk anecdote" for
|
| but Ferland stuck to LES projections of
| |
| | his audience while avoiding a direct
|
| the first SWU being delivered by fourth
| |
| | answer to the question about
|
| quarter 2008 and three million SWU
| |
| | KazAtomProm's robust production
|
| generated in late 2012 to 2013. An
| |
| | forecasts. He explained that this
|
| expansion decision won't be made until
| |
| | reminded him of the old Soviet Union,
|
| 2009. But then again, Ferland will be at
| |
| | when a top Communist party official met
|
| Westinghouse in Pittsburgh, not in New
| |
| | with the general manager of a Russian
|
| Mexico where LES will be sweating to
| |
| | dairy cooperative. The party official
|
| build that facility.More Bad News if
| |
| | asked the manager if he could quadruple
|
| Utilities Believe Kazak ProjectionsIn
| |
| | last year's milk production. Of course,
|
| what would qualify as the most sincere
| |
| | the manager promised he would, vowing
|
| presentation of the day, Power Resources
| |
| | that he would do this for the Politburo
|
| Chief Executive Fletcher Newton discussed
| |
| | and so forth. Then, the official asked
|
| the upside and downside of uranium mining
| |
| | the manager if he could increase
|
| in Kazakhstan. It is both a tribute to
| |
| | production by eight times. The manager
|
| the crystal clear transparency of Cameco
| |
| | announced it could be done and that he
|
| and their subsidiary, Power Resources, in
| |
| | would do it for the glory of the
|
| providing us the truth about this
| |
| | Fatherland. Finally, the party official
|
| difficult Central Asian country.
| |
| | asked the manager if he could increase
|
| Promising as Kazakhstan sounds on paper,
| |
| | milk production by 16 times over the
|
| Fletcher Newton concluded during his
| |
| | previous year. Exasperated, the manager
|
| presentation that mining in this country
| |
| | declared that he would achieve this
|
| would be challenging. More specifically,
| |
| | target, saying, "I can do it, but the
|
| he said, "There is lots of uranium out
| |
| | milk is going to look a lot like
|
| there, but getting it will be a
| |
| | water."Perhaps this anecdote will help
|
| challenge."Newton described the Inkai
| |
| | Florida Power and other utilities become
|
| solution mining project in Kazakhstan, of
| |
| | more cautious when readily factoring in
|
| which one section is 600 feet long by 300
| |
| | Kazak uranium production into their fuel
|
| feet wide. It will be the largest
| |
| | supply expectations.James Finch
|
| solution mining project in the world -
| |
| | contributes to and other publications.
|
| producing about 2000 tons annually,
| |
| | Visit to read all of his archived
|
| roughly 5 million pounds. The deposit has
| |
| | articles on uranium and the nuclear fuel
|
| extraordinary head grades, which is the
| |
| | cycle.
|
