U.S. Dept. of Energy Plans to Sell 50 Million Pounds of Excess Uranium in Next Ten Years

Don't guess that VUI argument about the US "needing" all of that Coles Hill uranium holds up under scrutiny, huh?

Yearly sales to exceed total amount of uranium mined in U.S. in 2007; political "full-court press" by uranium mining industry fails to stop DOE action; Powertech backs group opposed to DOE plans, touts U.S energy independence while agreeing to sell uranium to Belgian firm; Powertech chairman contracts to sell uranium to government of India.

Posted January 7, 2009

In a move intended to cut federal spending and benefit U.S. taxpayers, the U.S. Department of Energy on December 16 released a plan to sell off its excess inventory of uranium. According to the agency, "The Department of Energy has a significant inventory of uranium that is excess to United States defense needs. This inventory is expensive to manage and to secure..."

Powertech Uranium Corp., along with other Canadian and U.S. firms, has been attempting to dissuade the DOE from disposing of this uranium because it will push down prices for the radioactive metal. They argue that the U.S. uranium mining industry could be hurt by the DOE sales and that a weakened mining industry would compromise U.S energy security.

Uranium oxide, or "yellowcake", ready for further processing into nuclear reactor fuel.

The Excess Uranium Inventory Management Plan calls for the sale of approximately 50 million pounds of uranium over the next ten years. Beginning in 2008, the agency plans to sell about five million pounds a year, which is 10% of the DOE's estimated annual requirements of the U.S. nuclear power industry.

According to the DOE's Energy Information Administration, "Owners and operators of U.S. civilian nuclear power reactors purchased a total of 51 million pounds U3O8e (uranium oxide equivalent) of deliveries from U.S. government, U.S. suppliers and foreign suppliers during 2007."

The DOE estimates that the annual requirement of about 50 million pounds will not change for the next ten years.

The total production in 2007 from U.S. uranium mines was 4.5 million pounds from six underground mines and five in-situ leach operations. World uranium mine production was about 92 million pounds in 2007.

Read the rest of the article here: http://www.powertechexposed.com/USDOE_to_sell_50_million_lbs_U.htm