| Were Ready: This State is in Play! | | | | renaissance, where rumors are flying of a new |
| The New Face of Wyomings Uranium Mining | | | | nuclear power plant and the expansion of uranium |
| Part One of a Five-Part Series | | | | mining and nuclear in that state, explaining, New |
| Wyoming Governor Dave Freudenthal really likes the | | | | Mexico is closer to some larger energy consuming |
| current uranium bull market, I hope the price of | | | | markets. They have fewer miles of transmission lines |
| yellowcake stays up, and things get moving. Yes, the | | | | to build if they are going to get to California or |
| Wyoming democratic governor strongly endorses | | | | Nevada. It wouldnt seem illogical if I were a private |
| uranium mining in his state. That would make sense | | | | investor to look there first. |
| because Wyoming is the largest U.S. uranium | | | | What does the Governor have to say to the new |
| producer. More than 40 percent of the uranium | | | | flock of uranium development companies, joining |
| reserves in the United States are located in | | | | Camecos Power Resources in mining Wyomings |
| Wyoming, according to the reserves and resource | | | | uranium? There are several companies, which have |
| estimate published by the U.S. Energy Information | | | | staked land, and are now beginning to move their |
| Administration (EIA). Since hitting a bottom in late | | | | projects forward. Freudenthal advised, They need to |
| December 2000, the spot price of uranium has | | | | start allocating greater capital at a rate that the |
| soared by more than 500 percent, reaching a high of | | | | project sponsors are comfortable. Were past the |
| $38.50/pound at the end of February. The last time | | | | speculators. People know it (uranium) is here. Nobody |
| uranium traded this high, President Ronald Reagan | | | | wants to hit the market too early. And they dont |
| was into the second month of his first term. | | | | want to be too late. Itll move. I just dont know |
| Unlike some states, where uranium mining is frowned | | | | when. But when it does, were in a position to |
| upon, or banned, Wyoming welcomes the industry | | | | respond to it. Weve got the goods. Weve got the |
| with open arms. Weve always sort of been | | | | right regulatory climate. |
| comfortable with the uranium industry, Freudenthal | | | | Would Governor Freudenthal invite or discourage a |
| told The uranium industry is part of our history. Its | | | | public utility in building a nuclear power plant in |
| not something that is frightening or alarming to us. | | | | Wyoming? I dont have a problem with one. The |
| Freudenthal clearly sees nuclear energy as a potential | | | | question really has always been, and most of what |
| solution for the energy crisis, I dont think anybody | | | | we are focused on, right now, is getting power lines |
| has any reservations that we need to have greater | | | | built. If we dont have power lines, were not going to |
| domestic capability in energy. I think, in the circles | | | | get nuclear plants. Were not going to get coal-fired |
| that worry about those equations, there is clearly a | | | | plants. Were not going to get anything. Ours is an |
| role for nuclear power. | | | | export state. There is not enough internal demand |
| Freudenthal urged the capital markets to act on the | | | | for electricity to justify the construction of a plant. |
| energy crisis by turning to Wyoming and mining the | | | | Freudenthal added Wyoming was waiting to see if |
| abundant supply of uranium, Theres got to be some | | | | the larger economy is ready for some nuclear power |
| clear signals to the capital markets that investment in | | | | plants. |
| this area will ultimately be rewarded. We certainly | | | | Two years ago, his administration created the |
| have the resource. Since June 2004, publicly traded | | | | Wyoming Infrastructure Authority to work on |
| junior uranium companies and speculators have | | | | getting power lines constructed. That may help |
| created a staking frenzy in the state. Wyomings | | | | remove the bug stalling the launch of Wyomings first |
| Office of State Lands and Investments reported | | | | nuclear reactor, as well as exploiting the states most |
| developers are snapping up tens of thousands of | | | | valuable renewable energy source, wind. Weve got |
| acres of state leases. The reading room, where | | | | five or six areas that are world-class wind resources. |
| prospectors and developers study potential federal | | | | We have people who want to build the turbines, but |
| lands for leasing purposes in the Cheyenne office of | | | | they have got to have access to the power grid. |
| the U.S. Bureau of Land Management (BLM), was filled | | | | And I think the same is true in terms of whether it is |
| to capacity during a recent visit by the editorial team. | | | | a nuclear power plant, a coal-fired plant or this new |
| asked if the unusually high level of staking activity in | | | | combined-cycle plant, where you can convert coal to |
| Wyoming by publicly traded companies, such as | | | | gas. Ultimately, the marketplace will decide which way |
| Strathmore Minerals (TSX: STM; Other OTC: STHJF), | | | | theyre going to go. But, no matter which one they |
| Energy Metals Corporation (TSX: EMC), Kilgore | | | | do, I know my chances of getting it in Wyoming are |
| Minerals (TSX: KAU), UR-Energy (TSE: URE) and | | | | greater if I have figured out our power line routes. |
| Uranerz Energy (OTC BB: URNZ), was merely | | | | Freudenthal is popular, can think on his cowboy-boot |
| speculative, Freudenthal responded, I think were past | | | | clad feet, and can be decisive. And he is working on |
| the sort of speculation of people running through and | | | | the power line routes, not just dreaming about what |
| picking everything up. Were down to serious players | | | | could be done. We have some hopeful things, he |
| trying to make serious decisions. Good news for the | | | | explained. We have been working with California on |
| above-mentioned uranium development companies: | | | | the Frontier Line. And what is the Frontier Line? U.S. |
| The Governor of Wyoming believes you mean | | | | Secretary of Energy announced in a press release a |
| business, and hes doing everything he can to | | | | year ago, This proposal exhibits the boldness and |
| encourage you! | | | | innovation the West is traditionally known for, as well |
| Freudenthal was optimistic more companies would | | | | as the multi-state cooperation and big-picture thinking |
| bring their projects to Wyoming, These are not light | | | | required to make regional markets thrive. Secretary |
| investments. But you also dont go out and | | | | Bodman praised Governors Schwarzenegger, |
| re-activate uranium production, if at the end of the | | | | Freudenthal, Guinn and Huntsman, saying, the Frontier |
| day, you dont have a buyer. Governor Freudenthal is | | | | Line project will begin the process of ensuring reliable |
| a good listener and acts quickly and decisively when | | | | electricity for some of our fastest growing Western |
| facing facts. For example, when informed him that | | | | States. |
| decommissioned Russian nuclear warheads now | | | | Being an export state, Wyoming has done well during |
| powered about one in every twenty electric light | | | | the recent boom in commodities, enjoying the rising |
| bulbs in the United States, and that the | | | | royalties from the production of oil, natural gas, coal |
| swords-for-plowshares arrangement might end in | | | | and uranium. This past year, the state built up a |
| 2013 (end of HEU), Freudenthal responded, If that | | | | surplus of nearly $2 billion. How does Freudenthal plan |
| timing is correct, then they should already be making | | | | to spend this money? Were putting a chunk into |
| decisions to invest in Wyoming. I hope they do. | | | | college scholarships, a chunk into infrastructure and a |
| A large number of Canadian and European financiers | | | | chunk into human capital investments. And next year, |
| believe there is a nuclear renaissance. Where does | | | | Freudenthal will have more such chunks to spend as |
| the Governor stand? Were ready, Freudenthal shot | | | | high energy prices continue to demand the extraction |
| back. They just need to start bringing the projects | | | | of those abundant resources Wyoming generously |
| and the money (into Wyoming). I think we have a | | | | offers the rest of the United States. |
| very good regulatory climate. I think if they move | | | | As a side note, Wyoming is a red state, but with a |
| into the in situ (ISL) mining, weve got some | | | | very popular governor who is ironically a Democrat. |
| experience with that. And if the public companies | | | | While we did not discuss Freudenthals political |
| bring their projects to Wyoming, how does Governor | | | | ambitions, Wyomings previous leading political |
| Freudenthal feel? This state is IN PLAY! he | | | | personality has been serving as Vice-President of the |
| exuberantly announced. | | | | United States through most of this decade. Memo to |
| Asked to compare Wyoming with New Mexico, once | | | | Hillary Rodham Clinton: Dont overlook Dave |
| a top uranium-producing state, he responded, This | | | | Freudenthal if you want to woo the vast number of |
| state, historically, is just much more comfortable with | | | | red states between the east coast and the left |
| commodity development. On the other hand, he | | | | coast. This governor could help get your old room |
| somewhat deferred to New Mexicos own nuclear | | | | back at 1600 Pennsylvania Avenue. |