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