Cameco s Uranium for New Mexico s New Enrichment Facility
Below is a MRR and PLR article in category Finance -> subcategory Investing.
Cameco’s Uranium for New Mexico’s Enrichment Facility?
Overview
A proposed uranium enrichment facility in New Mexico may bypass local resources entirely, opting instead for uranium from Canada, effectively excluding the U.S. from significant steps of the nuclear fuel cycle. The key question remains: will Cameco be the supplier, and will the uranium originate from Canada or Kazakhstan?
Investigation Findings
Our recent investigation reveals that the uranium for the LES/Urenco enrichment facility in Lea County, New Mexico might not come from local or U.S. sources. Despite New Mexico's anticipated nuclear renaissance, a deal may already be in place to use foreign-mined uranium. The facility's partner, Urenco Ltd., might have an agreement with Canadian-based Cameco Corp.
Senator’s Insight
New Mexico State Senator Carroll H. Leavell noted that the uranium to be enriched in New Mexico would originate outside the U.S., specifically mentioning Saskatchewan. When questioned about the Athabasca Basin?"renowned for its rich uranium deposits?"Senator Leavell couldn't confirm its location but indicated that Urenco Ltd. confirmed the Canadian origin.
Cameco’s Possible Involvement
Cameco Corp. could potentially be the producer. On July 22, 2002, Cameco signed a Memorandum of Agreement with LES and partners like Urenco Ltd. Despite withdrawing from the LES project as a partner in 2003, it continued to support the initiative. Additionally, a joint venture between Areva and Urenco, Enrichment Technology Company, suggests uranium might also come from Areva’s Canadian interests.
Concerns Over Foreign Dependence
State Representative John A. Heaton from Carlsbad, New Mexico, voiced concerns over reliance on foreign energy, emphasizing the importance of utilizing domestic resources. Not only is Urenco Ltd. foreign-owned (a Dutch/British/German consortium), but the uranium may also come from Canada, with a possibility of sourcing from Kazakhstan?"where Cameco plans significant mining expansion.
Economic Implications
David Miller, a uranium industry analyst and Wyoming legislator, points out potential economic drawbacks for New Mexico. Relying on foreign uranium could deprive New Mexico of substantial tax revenues from domestic mining activities. Foreign uranium pays no taxes for entry or enrichment in the state.
Future Considerations
Miller raises important questions about the uranium's future use: where does it go after leaving New Mexico? Could it be further enriched for non-civilian purposes? These uncertainties could prompt New Mexican legislators to insist on using locally mined uranium.
Opportunity for Local Development
Miller suggests that requiring the LES plant to use New Mexico-mined uranium could create thousands of jobs, particularly in economically challenged areas. The state's Grants Uranium Belt, once a top uranium producer, is now being revisited by over a dozen companies keen to reopen production centers. This potential shift could not only invigorate local economies but also secure these jobs, providing substantial benefits for the state's citizens.
By re-evaluating these decisions, New Mexico's legislators might protect and foster domestic uranium mining developments, ensuring economic growth and job creation within the state.
You can find the original non-AI version of this article here: Cameco s Uranium for New Mexico s New Enrichment Facility .
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