StockInterview: Are the utilities going to get back into the domestic uranium sector to ensure their nuclear reactors have sufficient uranium available?

Jon Indall: In the 1970s, when we had the initial boom, the domestic utilities were out making deals with producers. They were actively investing in projects and things of that nature. I don’t think that’s going to happen this year or next year. But a few years down the line, if things really tighten up, you might see that.

StockInterview: Where do the U.S. utilities stand with regards to a domestic uranium industry?

Jon Indall: In the late 1980s and early 1990s, I think the utilities saw Canada as such a big production center, they lost interest in the domestic producers. They were not too worried about having enough fuel coming in.

StockInterview: But, hasn’t the industry changed over the past few years, as the spot uranium price has soared?

Jon Indall: If you read the trade press and everything else, you can see, with the impetus that’s going on in Asia and all the reactors that are under construction or planned, I think the utilities have to understand that security of supply is something they need to pay attention to. It’s on our agenda to start talking to the utilities a little bit more seriously. Even though you can get this material from other places, it’s nice to have a local producer. It’s fairly apparent this industry, in the next four to five years, could be producing in the range of 20 million pounds.

StockInterview: Do you believe the domestic uranium industry can produce twenty million pounds over the next four to five years?

Jon Indall: Conservatively, five to six years, but maybe even sooner. Well, let me put it this way: We’re producing roughly 3 million pounds now. That’s up from two. I could be off by a factor of a few hundred thousand. Power Resources is producing roughly 2 million pounds. With the Uranium Resources production that’s come on in Texas, and with Mestena, you’ve got about another million pounds or so. IUC has just announced that they’re going to produce 3.5 million pounds, I think, over the next two years. Some of that is material they’re cleaning up for DOE, but it is still production. All the UPA members have plans to be in production at some point.

StockInterview: Yes, but doesn’t it take five to eleven years to get the production underway?

Jon Indall: I think eleven years is too far out. I think, if the companies can get with it, you can see four or five In Situ Recovery (ISR) operations producing one to two million pounds apiece. And then maybe somebody gets a conventional mine going here again, like IUC is doing. I can’t tell you the exact number, but I think you’ll see increased production, assuming that the price continues to rise or stabilize.

StockInterview: How are the uranium companies going to move that fast?

Jon Indall: I think a lot of it, in my mind, is how well the regulatory community accepts what these guys are trying to do. My impression is – and this is just me talking – that a lot of the communities, where this activity has been undertaken before, are not averse to seeing it again. It means good jobs and that type of thing. A lot of these communities are sort of depressed communities. For example in New Mexico, McKinley County is one of the lowest counties in the state economically. I think the average guy out there would welcome the opportunity to see some high paying jobs.

Page 2 of 4 :: First | Last :: Prev | 1 2 3 4 | Next