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