"We are ready: this state is at stake!"
The New Face of uranium mines in Wyoming
Part of a five-part series
Wyoming Governor Dave Freudenthal really like the current uranium bull market, "I hope that the price of yellowcake stays, and things are moving." Yes, the Democratic governor of Wyoming strongly supports uranium mining in his state. This makes sense because Wyoming is the largest producer of uranium in the United States. More than 40 percent of uranium reserves in the United States are located in Wyoming, according to estimates of reserves and resources published by the U.S. Energy Information Administration (EIA). Since hitting a bottom in late December 2000, the spot price of 'uranium has risen by over 500 percent, reaching a peak of $ 38.50/pound in late February. The last time that the uranium traded this high, President Ronald Reagan in the second month of his first term.
Unlike some states where uranium mining is frowned upon, or forbidden, Wyoming welcomes the industry with open arms. "We've always been sort of comfortable with the uranium industry," said Freudenthal StockInterview.com. "The uranium industry is part of our history. It is not something frightening or alarming for us." Freudenthal clearly sees nuclear energy as a potential solution to the energy crisis, "I do not think anyone has reservations that we need to have greater national capacity in energy. I believe that in the circles that care about those equations, there is clearly a role for nuclear energy. "
Freudenthal urged the capital market to act on the energy crisis, turning to Wyoming and mining abundance of uranium, "There's got to be a signals clear to the capital markets That investment in this area will ultimately be rewarded. We certainly the resource. "Since June 2004, listed companies and junior uranium speculators have created a frenzy played in the state. Wyoming Office of State Planning and investments reported developers are snapping up tens of thousands of acres of state leases. The reading room, where the prospectors and developers to study potential for leasing federal lands for the office of Cheyenne 'U.S. Bureau of Land Management (BLM) was filled to capacity during a recent visit by the editorial team StockInterview.com.
StockInterview.com asked if the unusually high level of activity focusing in Wyoming by listed companies, such as minerals Strathmore (TSX: STM; Other OTC: STHJF), Energy Metals Corporation (TSX: EMC), Kilgore Minerals ( TSX: KAU), UR-Energy (TSE: URE) and Uranerz Energy (OTC BB: URNZ) was purely speculative, Freudenthal said: "I think we're beyond the kind of speculation of people crossing and shooting everything. There 're down to serious gamers Trying to take serious decisions. "Good news for companies mentioned above uranium development: The Governor of Wyoming believe you mean business, and is doing everything he can to Encourage You!
Freudenthal was optimistic more companies would bring their projects in Wyoming, "These investments are not light. But you do not exit and reactivate the production of uranium, if at the end of the day, you have a buyer." Governor Freudenthal is a good Listening and acting quickly and decisively in the face facts. For example, when StockInterview.com informed him that dismantled Russian nuclear warheads now powered about one every twenty electric light bulbs in the United States, and that the swords-to-plowshares agreement could be finalized in 2013 (end of HEU), said Freudenthal, "If this timing is correct, then they should already be making decisions to invest in Wyoming. I hope they do."
A large number of Canadian and European financiers believe there is a nuclear renaissance. What is the Governor? "We are ready," Freudenthal shot back. "They just need to start projects and the money (in Wyoming). I think we have a better regulatory climate. I believe that if you move in 'in situ' (ISL) mining, we have some experience with this." And if public companies to bring their projects in Wyoming, as does Governor Freudenthal feel? "This state is at stake", said exuberantly.
Asked to compare Wyoming to New Mexico, once a higher state of uranium production, he said: "This was, historically, is much more comfortable with the development of raw materials." On the other hand, has some 'referred to the nuclear renaissance in New Mexico, where flying rumors of a new nuclear plant and the expansion of uranium mining and nuclear weapons in that state, saying: "New Mexico is closer to some large consumer markets of energy. They have fewer miles of transmission lines to build, if they are to arrive in California and Nevada. It seems illogical if I were an investor to look first. "
What does the Governor has to say to companies developing new flock of uranium, Cameco Resources, which combines the power of uranium mines in Wyoming? There are several companies that have staked the ground and are now beginning to move forward with their projects. Freudenthal advised, "They need to start a major allocation of capital at a rate that the project sponsors are comfortable. We went to speculators. People know that (uranium) is here. Nobody wants to hit the market too soon. And I will not be too late. Will move. I do not know when. But when it does, we can respond to it. We have the goods. We have the right regulatory climate. "
Governor Freudenthal would invite or discourage a public utility in constructing a nuclear power plant in Wyoming? "I have a problem with one. The question really has always been, and most of what we focus on now is being built power lines. If you do not have supply lines, we're not going to get nuclear plants . We're not going to get coal plants. We're not going to get anything. Ours is a country of export. There is not enough domestic demand for electricity to justify the construction of a plant. " Freudenthal added Wyoming WAS "waiting to see if the biggest economy is ready for some nuclear plants."
Two years ago, his administration created the Wyoming Infrastructure Authority to work on power lines getting built. This can help remove the bug stall the launch of the first nuclear reactor in Wyoming, as well as leveraging the most valuable source of renewable energy state, the wind. "We have five or six areas that are world-class wind resources. There are people who want to build the turbines, but were able to have access to the electricity grid. And I think the same applies in terms of whether it is a nuclear power plant, a coal plant or the new combined cycle plant, which can convert coal into gas. Ultimately, the market decide which side they are going to go. But, no matter what they do, I know that my chances of success are greater in Wyoming if I understand our paths of the power line. "
Freudenthal is popular, can think of a cowboy boot-clad feet, and can be decisive. And you are working on power line routes, not just to dream what could be done. "We hope some things," he explained. "We worked with California on the border line." And what is the dividing line? The Secretary of Energy announced in a press release a year ago, "This proposal shows the boldness and innovation for the West is traditionally known as multi-state cooperation and think big-picture must make regional markets thrive. " Secretary Bodman praised Governor Schwarzenegger, Freudenthal, Guinn and Huntsman, saying: "... the project 'Frontier Line' will start the process to ensure reliable electric power for some of our fastest growing Western States."
As an exporting State, Wyoming has done well during the recent boom in raw materials, enjoying the increase in royalties from oil production, natural gas, coal and uranium. Last year the accumulated surplus of nearly $ 2 billion. How does Freudenthal plan to spend this money? "We're putting a piece of scholarship in college, a piece of infrastructure and investment in a piece of human capital." And next year, there were more pieces like Freudenthal spend high energy prices continue to demand the removal of Wyoming offers plentiful resources generously to the rest of the United States.
As a side note, Wyoming is a "state red", but with a very popular governor who is paradoxically a Democrat. Although we have not discussed political ambitions Freudenthal, Wyoming before leading political figures has served as Vice-President of the United States through most of this decade. Memo to Hillary Rodham Clinton: Do not ignore Dave Freudenthal if you want to woo the large number of red states between the east coast and left coast. This might help the governor get your old room back to 1600 Pennsylvania Avenue.
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