Energy Fuels acquires another mine
A Canadian company is continuing to stockpile resources in its bid to resurrect the local uranium boom. Energy Fuels Inc. is buying up uranium mines in the region as it awaits resolution of a lawsuit.

Energy Fuels Inc. obtained approval to construct the Piñon Ridge Uranium Mill in January. The Toronto-based uranium and vanadium mining company plans to site the mill in the middle of Western Colorado’s uranium belt on 1,000 acres of privately owned land in Paradox Valley, not far from the Dolores River. If it is built, the facility would be the nation’s first in a quarter century and located close to the only other operating uranium mill in the country, the White Mesa Mill in Blanding.

Telluride-based Sheep Mountain Alliance and Colorado Citizens Against Toxic Waste, a citizens group in Cañon City, are among the mill’s most outspoken opponents, and SMA is actively pursuing a lawsuit challenging the State of Colorado’s approval. The suit contends that Colorado regulators violated the Atomic Energy Act by not allowing the public to ask technical questions about the project.

However, Energy Fuels is steaming ahead in its quest to revive the region’s uranium belt. The company closed on an $11.5 million loan in March and is actively acquiring mines not far from Paradox Valley.

“Energy Fuels is quietly assembling an impressive array of properties on the Colorado Plateau,” said Stephen Antony, Energy Fuels president and CEO.

The company already owns two mines with uranium and vanadium resources – the Whirlwind and Energy Queen mines, just across the Colorado border in Utah. Early this month, the company shelled out another $520,000 to purchase the Crain Lease, which is located nearby on 640 acres not far from the historic Calliham and Sage Mines, already controlled by Energy Fuels. The company estimates that the Crain Lease contains hundreds of thousands of pounds of uranium and more than a million pounds of vanadium. In addition, all of the company’s new resources are a short truck trip away from the proposed Piñon Ridge Mill.

“The Sage Plain District historically produced significant quantities of uranium and vanadium,” Antony said. “Our recent acquisitions in this proven area are important steps toward bringing these mining properties back into production and providing additional feed for the Piñon Ridge Mill.”

Despite Antony’s optimism, Sheep Mountain Alliance contends that Energy Fuels is only trying to attract investors. Travis Stills, of the Durango-based Energy Minerals Law Center, is arguing the lawsuit on behalf of the conservation group. He noted that building the mill will cost hundreds of millions of dollars and uranium’s current price does not support such an expense.

“Although industry executives and traders have made millions over the past five or six years in uranium, very little actual mining took place in the Uravan Mineral Belt, even while the price was driven briefly into the $150 range as a result of hedge fund and speculator activities,” he said. “The price of yellowcake has been in the $50 range for some time now.”

Meanwhile, the uranium industry is stumbling south of the Colorado border in New Mexico. Last week, a uranium exploration project west of Socorro was voluntarily dropped by the company that proposed it. The White Mesa uranium exploration project would have allowed exploratory drilling in the Datil Mountains but also faced a federal lawsuit challenging the administrative rules that approved the exploration.

Durango unemployment bucks trends
La Plata County is continuing to defy national economic trends. Despite the U.S. and Colorado economies’ continued sluggish recoveries, the Durango area is posting strong numbers.

Unemployment has been one of the biggest downsides to the U.S. economy since the recession began in 2008. July’s numbers were released this week and the news continues to be bad for most of the U.S. and Colorado. National and state unemployment rates in July changed minimally with Colorado’s unemployment holding steady at 8.5 percent. While jobs continue to grow in the state, the pace has been less than desirable.

La Plata County appears to be an exception to this rule. According to the Bureau of Labor Statistics, 1,700 more residents of La Plata County were working in June 2011 than the year prior. The trend continued in July with 31,100 local residents gainfully employed. The numbers marked an increase of almost 2,800 residents with jobs over July 2010, according to the La Plata Economic Development Alliance.  

Roger Zalneraitis, executive director of the Alliance, noted that the jump is statistically significant. La Plata County posted the highest increase among any county in the state for the second month in a row. He added that July’s increase was also the largest per capita increase in employment for any metropolitan region.

As of July, La Plata County’s unemployment was 6.4 percent and the region boasted the largest number of employed residents since the recession began.

Fort Lewis volunteerism honored
Fort Lewis College received high marks for philanthropy this week. The Corporation for National & Community Service named the school to the President’s Higher Education Community Service Honor Roll. Fort Lewis is one of eight Colorado institutions to make the list.

The Honor Roll “celebrates exemplary commitment to service and volunteering from institutions of higher education.” The heart of the community service effort at Fort Lewis College is the Center for Civic Engagement. Established in 1993, the Center exists to help faculty and students integrate academics with service and activism. This marriage of textbooks and good works is known as the Community-Based Learning and Research program. Through CBLR, FLC students, faculty and staff contribute approximately 50,000 hours per semester to causes and organizations in the community.

Power shortage strikes New Mexico
A wave of the future may have swept through New Mexico early this week. Colorado-based Xcel Energy declared an energy alert in its New Mexico and Texas service territory on Tuesday as a result of high electricity demand and maintenance issues at area power plants.

“We are making a public appeal to our customers to turn off lights and appliances unless it would harm their health,” said Riley Hill, of Xcel Energy.

The company’s forecasts pointed to demand outstripping supply. Without voluntary restrictions, controlled outages were expected. The company planned to lift the restriction as soon as repairs were complete.

– Will Sands