NRC wants uranium mining input
Nuclear revival already in full swing

By Kathy Helms
Diné Bureau

WINDOW ROCK — Members of the U.S. Nuclear Regulatory Commission will conduct a public meeting Thursday evening in Gallup to obtain comments on a Generic Environmental Impact Statement that would speed up licensing for new uranium recovery facilities and conventional mills.

The only significant commercial use for uranium is as a fuel for nuclear power plants to generate electricity. There were 435 nuclear power plants operating around the world at the end of 2006, according to the World Nuclear Association.

However, on Tuesday, NRG Energy Inc., along with South Texas Project Nuclear Operating Co., filed the first application for a new nuclear power plant in 29 years. NRG has applied for a Combined Construction and Operating License from the Nuclear Regulatory Commission to build and operate two new nuclear reactor units at the South Texas Project nuclear power station site.

U.S. Sen. Pete Domenici, R-N.M., ranking member of the Senate Energy and Natural Resources Committee and a leading proponent of nuclear power, played a major role in creation of the COL process, designed to accelerate the time it takes to license and build new nuclear plants.

Since July, several companies have announced plans to provide uranium services in the western United States that will fuel the 28 new reactors anticipated to be built.

Hydro Resources Inc., which plans to conduct in situ recovery of uranium in Crownpoint, Churchrock, and several other locations in McKinley County surrounding Gallup, has a number of projects on tap.

Mark Pelizza of HRI said recently that an Environmental Impact Statement already has been completed for its McKinley operations, so the GEIS would not have a direct bearing on those projects.

Water is essential to the in situ recovery of uranium. With Gallup less than 10 years away from a major water crisis and banking on the proposed Navajo-Gallup Water Supply Project to meet its basic needs, HRI’s opponents, such as Eastern Navajo Diné Against Uranium Mining in Churchrock, have objected to the in situ process, fearing groundwater contamination.

Uranium Resources Inc., parent company of HRI, said in filings with the Securities and Exchange Commission, however, that the company holds approved water rights in the San Juan and Gallup basins in New Mexico to provide sufficient water to conduct mining at the Churchrock project and Section-24 for the Crownpoint project for the projected life of the mines.

“We also hold two unprotested senior water rights applications that, when approved, would provide sufficient water for future extensions of the Crownpoint project,” URI said. The Crownpoint properties are located in the San Juan Basin, 35 miles northeast of Gallup.

Reuters reported Tuesday that URI said it has three pending applications for appropriations of water for the San Juan Basin and that certain of the water rights may involve a claim of jurisdiction by the Navajo Nation.

Jurisdiction over water rights becomes an issue in New Mexico when an Indian nation, such as the Navajo Nation, objects to the New Mexico State Engineer’s authority and claims tribal jurisdiction over Indian Country, according to URI.

“This issue may result in litigation between the Indian nation and the state, which may delay action on water right applications, and can require applications to the appropriate Indian nation and continuing jurisdiction by the Indian nation over use of the water. The foregoing issues arise in connection with certain of our New Mexico properties,” URI said.

On Dec. 5, 2006, HRI-Churchrock Inc. entered into a joint venture with Itochu Corp. of Japan to develop the Churchrock property.

The Final EIS issued in February 1997 for HRI’s Crownpoint project states that the company contracted with Energy Fuels Nuclear to use its disposal facility in Blanding, Utah, for byproduct generated as a result of the process.

Energy Fuels Inc. of Toronto announced July 18 that it had acquired approximately 1,000 acres of property located west of Naturita, Colo., in the Paradox Valley, where it intends to construct a state-of-the-art conventional uranium/vanadium mill, known as Piñon Ridge Uranium Mill.

The Energy Fuels team includes many of the key members that financed and built, for Energy Fuels Nuclear, the White Mesa Mill in Blanding, the last fully operational uranium mill commissioned in the United States.

The Pinon Ridge Mill, located among all of Energy Fuels’ properties in Colorado and Utah, will be designed with a capacity of 1,000 tons per day of ore throughput.

The White Mesa Mill, located in San Juan County, is now wholly owned by Denison Mines Inc., formed Dec. 1, 2006, through the combination of business and operations of Denison and International Uranium Corp.

Denison announced Sept. 10 that it has received all of the necessary operating permits from the U.S. Bureau of Land Management and the state of Utah for the company’s Tony M mine, which is expected to be one of the largest underground uranium mines in North America. It is located west of the White Mesa Mill.

The Tony M mine is anticipated to reach full production by mid-2008, producing 18,000 tons of ore per month. Mining also is under way at four of the company’s uranium mines in the Colorado Plateau District. More than 10,000 tons of ore are produced per month and are being stockpiled at the White Mesa Mill with processing set to begin in early 2008.

Denison also is anticipating ore production from its Arizona 1 mine on the Arizona Strip in northeastern Arizona to begin in mid-2008, according to the company.