From Mining Companies Exploration and Investment News
A state commission approved a study Thursday to examine the impact of mining a rich uranium ore deposit in Virginia believed to be the largest untapped trove of uranium in North America.
The unanimous vote by the Virginia Coal and Energy Commission could be the first step toward ending a 1980s moratorium on uranium mining in Virginia. The study will center on a deposit in rural Southside Virginia that contains 119 million pounds of uranium ore valued between $8 billion and $10 billion.
The U.S. now produces only 4.7 million pounds of the 65 million pounds of uranium ore used domestically each year, according to Mick Mastilovic, vice president of operations for Virginia Uranium Inc., the Chatham company that wants to begin mining.
The yellow cake ore is primarily used for nuclear power plants, which now rely on uranium from Canada, Australia and Russia.
The study will pair the Virginia Center for Coal and Energy Research at Virginia Tech with the National Academy of Sciences. An independent study supported by Virginia Uranium failed in the General Assembly earlier this year because some feared it was tilted toward mining.
Del. Terry G. Kilgore, chairman of the legislative panel that approved Thursday’s study, said the commission’s examination would probably take 18 months to two years to complete and would include significant public involvement.
“We need to leave no stone unturned on this. If it’s not safe, we don’t want to do it,” Kilgore said of the mining.
Virginia has had a moratorium on uranium mining since 1981, two years after the accident at Three Mile Island Unit 2, which remains the most serious commercial nuclear power accident in the United States. The accident and the nuclear power protests that followed virtually ended the building of new nuclear power plants in the U.S.
The nation, however, has seen a renewed interest in nuclear power and energy independence, and President-elect Barack Obama has said he does not oppose the energy source. The price of uranium has increased.
At a brief hearing before the commission, Sarah Motley said her family homestead dating back 150 years is within 2 miles of the uranium deposit in Pittsylvania County, near the North Carolina line. She opposed mining 25 years ago and still worries about its environmental toll.
“We don’t know what the right thing to do is, but we still have concerns,” she said after the meeting.
The Southern Environmental Law Center, which supports the moratorium, said uranium mining is often a surface operation susceptible to severe weather. The environmental group is concerned about uranium mining’s impact on groundwater, livestock and the health of local residents.
“We’ve got to proceed with caution because were are heading into uncharted territory,” said Cale Jaffe, a senior attorney for the law center.
Whit Clement, representing Virginia Uranium, said the two Virginia families who own a controlling interest in the company are mindful of the worries of those who oppose the mining. He said the independent, science-based study will determine “if it can be done safely.”
“You can rest assured that the environmentalists will make sure that not only is everything studied, but they will oppose it in the end,” Clement said.
http://investatasia.com/2008/11/10/mining-finance/virginia-panel-approves-study-of-mining-vast-uranium-trove/
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