Buys portend Wyo uranium rebound

Buys portend Wyo uranium rebound

Saying Wyoming’s attitudes toward mining are the best in the United States, an international uranium mining company has agreed to two major acquisitions in the state, leaving little doubt that Wyoming’s long-dormant uranium industry will soon come back into full production.

SXR Uranium One Inc. said it plans to have the Sweetwater uranium mill up and running by 2010. The mill is located in the Red Desert midway between Jeffrey City to the north and Wamsutter to the south.

Toronto-based Uranium One has agreed to pay $110 million to acquire Rio Tinto Group’s Sweetwater uranium mill and its nearby Green Mountain deposit of about 57.7 million tons of uranium.

In addition, Riverton-based U.S. Energy and its affiliates have agreed to sell nearly all their uranium assets to Uranium One, including the Sheep Mountain properties in central Wyoming, a uranium mill in Utah and several uranium properties throughout the West.

That deal could be worth up to $90 million for the U.S. Energy companies.

“We are looking to fast-track development of these assets as soon as possible,” said Uranium One spokesman Chris Sattler.

Uranium One is setting up uranium mining and milling operations in South Africa, targeting a 2007 start-up date, and in Australia in 2008. That would put the company’s Wyoming and Utah properties on track for start-up dates in 2009 and 2010, Sattler said.

Uranium traded for about $46 per pound early this week — a continued recovery from several years of prices well below $20 per pound.

“Uranium One believes the U.S. is going to be a great place to do business, and that includes Wyoming and Utah,” Sattler said.

For the related story please click on the link below.

U.S. Energy: We’re not out of uranium

For more, click on www.casperstartribune.net/news/wyoming

Source: casperstartribune.net

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