| Guess what? Our recent investigation shows the | | | | double-whammy of foreign dependence. Not only |
| uranium to be enriched in the LES/Urenco | | | | is Urenco Ltd a foreign-owned and controlled |
| proposed enrichment facility in Lea County, New | | | | company (a Dutch/ British/German consortium), |
| Mexico may come neither from uranium | | | | but the uranium its New Mexico facility would be |
| properties in New Mexico nor anywhere else in | | | | enriching could come from at least one foreign |
| the United States. Just as New Mexico's nuclear | | | | source, Canada. Because the uranium ore might |
| uranium mining renaissance was ready to get | | | | be sourced from Cameco, yet another country's |
| underway, a deal may have already been cut to | | | | uranium could be supplying the New Mexico |
| enrich uranium mined in a foreign country. | | | | enrichment facility: Kazakhstan. |
| Louisiana Energy Services (LES), through the | | | | Cameco plans to boost uranium mining in this |
| consortium's general partner Urenco Ltd., may | | | | former Soviet country to a level which might |
| have struck a deal with Canadian-based Cameco | | | | approach its uranium production in the Athabasca |
| Corp. Will this uranium come from Canada or | | | | Basin. Kazakhstan recently joined the "Putin |
| Kazakhstan? | | | | Alliance" of uranium-producing countries. On June |
| According to New Mexico State Senator Carroll H. | | | | 22nd, Kazakhstan signed a contract worth $1 |
| Leavell, the uranium ore to be enriched at the | | | | billion to supply Russia's Tekhsnabexport to supply |
| facility near Eunice, New Mexico facility would be | | | | Russians with uranium through the year 2020. The |
| coming from outside the United States. Senator | | | | Economist Magazine's Economic Intelligence Unit |
| Leavell told StockInterview, "The uranium ore will | | | | recently issued a caution on this country. |
| be coming out of Saskatchewan." When we | | | | We asked our uranium industry analyst, David |
| asked if the uranium to be enriched in New | | | | Miller, about this new twist in the LES/Urenco |
| Mexico would come from the Athabasca Basin, an | | | | story. Miller is a third-term Wyoming legislator, |
| area hosting the world's richest grades of uranium | | | | who is an original member of the Wyoming |
| and which is also located in northern | | | | Energy Commission and a past member of the |
| Saskatchewan, Senator Leavell claimed he wasn't | | | | National Council of State Legislator's (NCSL) |
| sure where the Athabasca Basin was. But he told | | | | Energy Committee., now serving on a |
| us that Urenco Ltd informed him the uranium was | | | | NCSL-related committee. Miller is also president of |
| coming from that western Canadian province. | | | | Strathmore Minerals, a company which is now |
| We can only speculate the uranium producer | | | | advancing its properties through the permitting |
| might be Cameco Corp. On July 22, 2002, | | | | process in New Mexico. Miller told us, "The State |
| Cameco signed a Memorandum of Agreement | | | | of New Mexico may miss out on the hundreds of |
| with LES, along with Urenco Ltd, Westinghouse | | | | millions of dollars of tax revenues from potential |
| Electric Company, Fluor Daniel and the affiliates of | | | | severance, ad valorem, sales and other taxes the |
| U.S. utilities: Exelon, Duke and Entergy. In an email | | | | domestic industry would pay the state to mine |
| response to our inquiry, earlier this week, | | | | uranium in New Mexico. Instead, the foreign |
| Netherlands-based Urenco Ltd Communications | | | | uranium pays zero taxes to enter the state for |
| Coordinator April Wildegose-Mistry informed us, | | | | enrichment." In other words, Cameco or another |
| "Cameco Corp was part of the original LES | | | | may be getting a free ride on taxes. |
| project. They pulled out around March 2003 as | | | | Ominously, Miller asks these questions, "The real |
| they needed to focus on other business issues." | | | | question for New Mexico is this: What happens to |
| We have also asked to interview Urenco's CEO. | | | | the part of the uranium that does not go onto |
| Perhaps he may clarify this matter for us. One | | | | the fabrication plant? Does it stay in New Mexico? |
| industry insider told us Cameco stated its | | | | Is it shipped back to Russia, Kazakhstan or |
| continued support for the LES initiative after it | | | | Saskatchewan?" This gave us pause for thought. |
| withdrew as a partner. However, the recent joint | | | | After it leaves New Mexico, how do we know it |
| venture company, Enrichment Technology | | | | would be used for civilian energy purposes? Could |
| Company, formed by Areva and Urenco may | | | | it be transported elsewhere and be more highly |
| open the possibility the uranium could also come | | | | enriched? That's just speculation. |
| from Areva's uranium interests in Athabasca. | | | | Miller recommended that New Mexico legislators |
| AREVA is a Paris-based company offering | | | | demand the LES plant be fed uranium mined in |
| technological solutions for nuclear power | | | | New Mexico, not in Canada or Kazakhstan. "If this |
| generation, and electricity transmission and | | | | were to happen," Miller wrote in an email to us, |
| distribution. | | | | "thousands of new mining jobs would be created |
| This development could further irritate at least | | | | in areas of New Mexico which need the most |
| one New Mexico legislator. State representative | | | | economic development." Once the world's leading |
| John A. Heaton from Carlsbad, New Mexico, and | | | | uranium producer, New Mexico's Grants Uranium |
| who also sits on New Mexico's Energy and Natural | | | | Belt is again being explored by more than a dozen |
| Resource Committee, was adamant about U.S. | | | | companies. Some hope to permit and operate |
| independence from foreign energy sources. He | | | | new uranium production centers in New Mexico. |
| told StockInterview, "We need to use the assets | | | | We trust this latest wrinkle will awaken New |
| we have and not be dependent upon foreign | | | | Mexico's legislators and help them protect uranium |
| countries. I worry a lot about the dependence we | | | | mining developments in their states. Perhaps their |
| have on other countries." | | | | voters, who might be looking for higher paying |
| In this instance, Heaton might be getting a | | | | jobs, would appreciate that. |