StockInterview: How well would the regulatory community in New Mexico react?

Jon Indall: I recently met with the New Mexico Mining Minerals Division. Since we passed the New Mexico Mining Act in 1993, no one has permitted a mine in New Mexico. We were talking about how we were going to do this. Obviously it’s not going to happen tomorrow.

StockInterview: What about senior state officials, such as the Governor of New Mexico?

Jon Indall: I can tell you the New Mexico governor was extremely supportive of the uranium miners when he was in Congress. He introduced legislation supporting our efforts in those days, and some of it he did on his own. He’s got a big state to govern, and I think he’s looking for jobs. I think if we can show him that we can do this better than we did in the past, then he’ll be supportive. That’s my hope.

StockInterview: Will the major oil or mining companies return to the uranium industry?

Jon Indall: I don’t anticipate the big oil companies coming in again for some time. BHP Billiton initially said, ‘We have no interest in uranium mining in New Mexico.’ Then they turned around and bought the biggest property in Australia. Now I understand BHP is looking hard at their New Mexico operations. So you might see some of the big mining companies involved.

StockInterview: Who, then, will build up the domestic uranium industry?

Jon Indall: I think it may be more entrepreneurial, which was the way it started back in the 1950s. The early producers, with the exception of Kerr McGee, were individuals – Charlie Steen, Dick Bokum, and Cotter Ferguson in Wyoming. They were the people who really got this industry up and going, with AEC assistance. I am not sure the oil companies are that critical, but I would like to see utilities get into the mix. I think it all depends on how supply and demand is perceived.

StockInterview: How should the major uranium producers, such as Cameco or BHP, deal with the impact of a potential supply shortage for U.S. utilities?

Jon Indall: BHP and Cameco are aggressively trying to increase their production. They wouldn’t be doing that if they didn’t think there was a market for it. The U.S. market and the U.S. government are so critical to the health of all suppliers, in my opinion, because our government has done more to help and harm domestic and worldwide production than any other entity. I think foreign producers would be wise to recognize that having a viable U.S. industry, which senators and the congressmen care about, because they’re creating jobs and income in their states, is not a bad thing. I think it keeps DOE honest. To me, if I were sitting up in Canada, this would be something I might be looking at.

StockInterview: What should U.S. utilities be looking at, with regards to the supply picture?

Jon Indall: You’ve got the Russians announcing they’re not going to proceed with the HEU agreement after 2013. It is my understanding they’re looking to beef up supply for themselves. With the utilities, I think it’s kind of ‘wait and see’ right now. I think that they’re looking at this from the big picture. I think it’s becoming more evident to them nuclear has got to play an ever increasing role. Global warming is really driving a lot of boats here, and I think they’re realizing there has to be a real active nuclear power plant production increase.

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