Interim Watch: Uranium Industry Makes Big Pitch to Resume NM Mining Operations

By Charlotte Chinana

As state officials look for ways to stimulate New Mexico’s economy and create more jobs, supporters of efforts to restart uranium mining operations in the state were handed a stage to make their pitch to legislators at this week’s meeting of the Economic and Rural Development Interim Committee in Grants.

And according to a panel devoted to the subject, prospects for the industry couldn’t be rosier as their key following talking points did attest:

  • New Mexico’s uranium reserves are among the richest in the nation – 2nd only to Wyoming;
  • The nuclear energy industry’s safety record is the “Best of any industry in the history of the world;” and
  • “The future is fairly optimistic for uranium (mining) in New Mexico”

New Mexico’s uranium rich reserves

According to the industry speakers, New Mexico has one of the richest uranium deposits in the United States, which “creates a lucrative opportunity to resume mining operations,” projected to “create thousands of jobs.”

“The world demand for uranium would double if the proposed nuclear reactors are built,” said Barbara Brazil, Deputy Secretary of the state’s Economic Development Department. According to estimates from the International Atomic Energy Agency, there are currently 440 operational reactors in the world – 104 of which are located across the United States.

“The U.S. consumes 20% of the world’s energy,” added John Bemis, Secretary-designee of the Energy, Minerals, and Natural Resources Department. “This is the world as we know it today…everybody needs to remember that we need uranium to fuel those nuclear plants.”

Not addressed in any detail were a couple of none too rosy “economic opportunity caveats”:

  • Industry estimates that the state’s uranium reserves will be worth approximately $31 billion dollars are based on economic assumptions that the price per pound of uranium would hold steady at $90 to $100 per pound over a 30 year period. However, a more likely scenario is that the price will fluctuate.  The laws of supply and demand can be a pesky critters. For example, in 2000 the price per pound of uranium was $6 – and as of July 25 of this year, the uranium price per pound was $51.50.
  • Metal mining in the state doesn’t have the best track record in terms of economic stability. According to a 2008 report prepared for the New Mexico Environmental Law Center, the state has been through many copper mining boom and bust cycles, as well as one previous uranium boom and bust cycle (circa 1948 – early 1980s).

Also, another hardly insignificant issue touched on with regard to NM’s uranium reserves was the potential jurisdictional issues that can arise. Some of “the state’s” uranium deposits are located on Indigenous lands.

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