Cameco's Uranium For New Mexico's New Enrichment Facility?

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