| "We're Ready: This State is in Play!" | | | | renaissance, where rumors are flying of a new |
| The New Face of Wyoming's 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, | | | | to build if they are going to get to California or |
| the Wyoming democratic governor strongly endorses | | | | Nevada. It wouldn't 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 | | | | Cameco's Power Resources in mining Wyoming's |
| 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. We're 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 don't |
| was into the second month of his first term. | | | | want to be too late. It'll move. I just don't know |
| Unlike some states, where uranium mining is frowned | | | | when. But when it does, we're in a position to |
| upon, or banned, Wyoming welcomes the industry | | | | respond to it. We've got the goods. We've got the |
| with open arms. "We've 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. It's | | | | public utility in building a nuclear power plant in |
| not something that is frightening or alarming to us." | | | | Wyoming? "I don't 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 don't think anybody | | | | we are focused on, right now, is getting power lines |
| has any reservations that we need to have greater | | | | built. If we don't have power lines, we're not going to |
| domestic capability in energy. I think, in the circles | | | | get nuclear plants. We're not going to get coal-fired |
| that worry about those equations, there is clearly a | | | | plants. We're 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, "There's 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. Wyoming's | | | | remove the bug stalling the launch of Wyoming's first |
| Office of State Lands and Investments reported | | | | nuclear reactor, as well as exploiting the state's most |
| developers are snapping up tens of thousands of | | | | valuable renewable energy source, wind. "We've 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), | | | | they're 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 we're | | | | clad feet, and can be decisive. And he is working on |
| past the sort of speculation of people running | | | | the power line routes, not just dreaming about what |
| through and picking everything up. We're down to | | | | could be done. "We have some hopeful things," he |
| serious players trying to make serious decisions." | | | | explained. "We have been working with California on |
| Good news for the above-mentioned uranium | | | | the Frontier Line." And what is the Frontier Line? U.S. |
| development companies: The Governor of Wyoming | | | | Secretary of Energy announced in a press release a |
| believes you mean business, and he's doing | | | | year ago, "This proposal exhibits the boldness and |
| everything he can to 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 don't go out and | | | | Bodman praised Governors Schwarzenegger, |
| re-activate uranium production, if at the end of the | | | | Freudenthal, Guinn and Huntsman, saying, "... the |
| day, you don't have a buyer." Governor Freudenthal | | | | 'Frontier Line' project will begin the process of |
| is a good listener and acts quickly and decisively | | | | ensuring reliable electricity for some of our fastest |
| when facing facts. For example, when informed him | | | | growing Western States." |
| that 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? "We're 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 |
| believe there is a nuclear renaissance. Where does | | | | year, Freudenthal will have more such chunks to |
| the Governor stand? "We're ready," Freudenthal shot | | | | spend as high energy prices continue to demand the |
| back. "They just need to start bringing the projects | | | | extraction of those abundant resources Wyoming |
| and the money (into Wyoming). I think we have a | | | | generously 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, we've got some | | | | very popular governor who is ironically a Democrat. |
| experience with that." And if the public companies | | | | While we did not discuss Freudenthal's political |
| bring their projects to Wyoming, how does Governor | | | | ambitions, Wyoming's 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: Don't 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 Mexico's own nuclear | | | | back at 1600 Pennsylvania Avenue. |