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