Showing posts with label Financial Loss. Show all posts
Showing posts with label Financial Loss. Show all posts

Wednesday, August 5, 2009

Uranium all about $ signs

As Lord Overstone said, "No warning can save a people determined to grow suddenly rich." And remember, Denison now has a stake in Coles Hill. Excellent points, Phillip.

Chatham Star-Tribune
August 5, 2009

Opinion

It saddens me to think some can only think of $$ (dollar signs) and not the contamination and sickness from uranium mining and milling.

We, the citizens, have nothing to gain and everything to lose.

I would like to know when the price of uranium drops will Virginia Uranium Inc. or any other uranium mining companies handle their mining and milling operations like all the other mining companies in the world do?

Will you stop operations tempora[rily] or permanently until the price of uranium rises again?

Keep in mind, even if you are an experienced miner, these jobs could be part time; you might be laid off for months.

Can you support your family on a part-time job? Would you try and build or buy a house or buy a new vehicle knowing you might only work three to four months a year?

The only milling facility (White Mesa) in the United States has only operated a few months this year, and announced in May it would not process ore for the remainder of 2009 because its cost is higher than the spot price of uranium, according to Denison Mines president Ron Hochstein.

Let's not forget about all the part-time tax revenue for our county and state.

My understanding of the tax revenue from mining and milling operations is the company has to be running and the jobs being worked to get the tax revenue.

Our great state and county are not run on part-time taxes and jobs.

It might help, but it does not outweigh the contamination of our drinking water and land, the sickness to our families and the tax increases to clean up this mess if it ever could be cleaned up.

All I hear is we need to mine this uranium, get it out of the ground if it is so dangerous, it's a matter of national security, and we need to dig so we can power our nuclear plants now.

Well watch the price drop and you will see the mining stop.

The nuclear plants still need the uranium whether the price is high or low, but we have an excess of uranium, and the mining and milling will stop and start with the greed and costs of operations.

If dug up, the radon released with be 10,000 times more than if left in the ground.

What I feel is a matter of national security is destroying your own water and agriculture land and depending on foreign countries to feed you or provide you with drinking water.

Phillip Lovelace

Gretna

http://www.wpcva.com/articles/2009/08/05/chatham/opinion/opinion02.txt

Tuesday, April 14, 2009

Lehman Sitting on Bomb’s Worth of Uranium Cake as Prices Slump

By Linda Sandler, Yuriy Humber and Christopher Scinta

April 14 (Bloomberg) -- Lehman Brothers Holdings Inc. is sitting on enough uranium cake to make a nuclear bomb as it waits for prices of the commodity to rebound, according to traders and nuclear experts.

The bankrupt bank, in the throes of paying off creditors, acquired uranium cake “under a matured commodities contract” and plans to sell it when the market improves “to realize the best prices,” Chief Executive Officer Bryan Marsal said.

Lehman, once the fourth-largest investment bank, has an estimated $200 billion in unsecured liabilities left to pay. The uranium, which may be as much as 500,000 pounds, might fetch $20 million at today’s prices of about $40 per pound, said traders who asked not to be named because of the confidential nature of the data. Marsal said the traders’ estimate of Lehman’s uranium holding is “reasonable,” while declining to be more specific.

Uranium has dropped for five straight months from $55 a pound on Dec. 1 on concerns that countries including China and India would delay nuclear power projects because of the global economic crisis, and because Lehman might dump its radioactive material on the market, the traders said.

More than 43 million pounds of uranium-oxide concentrate, or yellowcake equivalent sold on the spot market last year, more than doubling the 2007 trading volume, according to Roswell, Georgia-based Ux Consulting Co.

The oversupply in an illiquid market pushed prices down about 30 percent between September and November, spurring sales by speculative investors, such as hedge funds, said John Wong, a fund manager in London at CQS UK LLP, which has $6 billion under management including shares of funds that own uranium.

Not Liquid Market

“What people found out is that this is not like playing copper where it’s a liquid and deep market,” Wong said. “A lot of the funds playing this market have blown up.”

Uranium typically trades through broker-dealers, including MF Global Ltd. and Tullett Prebon Plc, or in direct sales between mining companies and nuclear utilities. Utilities buy processed ore known as yellowcake, which is later converted, enriched and fabricated into fuel rods. The New York Stock Exchange also supports trading in futures contracts, which are not linked to physical delivery.

The market is regulated by governments, who control transport of radioactive material and limit the number of buyers and sellers by requiring them to obtain licenses. Utilities and producers are key buyers and sellers. Lehman got its license just a month before its bankruptcy, one of the traders said.

A supply of 500,000 pounds of yellowcake is just “slightly” less than the amount needed to make one bomb, or fuel one nuclear power reactor for a year, if the latest enrichment technologies are used, said Gennady Pshakin, an Obninsk, Russia-based nonproliferation expert.

Unloading Everything

Lehman, before filing for bankruptcy protection in September, actively traded commodities in the broker-dealer market and on exchanges such as the London Metal Exchange and the New York Mercantile Exchange. After filing, it began unloading holdings of everything, including greenhouse-gas credits, traders said. Uncertainty about the bank’s plans for its uranium is helping to depress prices, Wong said.

“Everyone knows there’s still an overhang,” he said. If Lehman sold its remaining stockpile, “there’d be a tightness in the market immediately.”

Lehman “tested” the uranium market after its bankruptcy filing in an effort to raise cash, pulling back after it did because “everyone was low balling,” Marsal said. With $10 billion in the till today from other asset sales, Lehman isn’t in a hurry any longer to sell uranium, he said.

“We plan on gradually selling this material over the next two years,” he said. “We are not dumping this on the market and have no fire-sale mentality.”

Forced to Liquidate

Lehman’s bankruptcy forced it to liquidate assets to pay creditors. Some $400 billion out of $639 billion in assets were offset by matching liabilities, Marsal said.

The bank raised a quick $1.75 billion in September by selling its North American brokerage and real estate to Barclays Plc. It later got the London-based bank to return thousands of Lehman-logoed knickknacks that also will be sold to pay creditors, the bank said. They include tote bags, umbrellas, stress balls, Tiffany paperweights and other items now stored in closets and warehouses from New York to Chicago.

Lehman’s radioactive material is partly stored in Canada, Marsal said. One trader, who declined to specify a date, said he was offered 450,000 pounds of Lehman uranium stored in facilities owned by Canada’s Cameco Corp. and France’s Areva SA.

“When Lehman first approached the market to sell the material, they had a flawed market strategy,” said Kevin Smith, head of uranium trading and marketing at commodities brokerage Traxys SA. “They were trying to sell it all as a block and part of it was at a less desirable location. It was a take-it-or- leave-it offer, so everyone left it.”

The bankruptcy case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

http://www.bloomberg.com/apps/news?pid=20601103&sid=aVgwamEW_98I&refer=news

Wednesday, April 1, 2009

Uranium Mining is Yesterday's Technology

We're often impressed with the quality of anti-mining Letters and Guest Editorials in the Chatham Star-Tribune. Most of them are well-considered and thought-provoking. This one is particularly interesting in that it applies a different sensibility...that of a seasoned traveler.


Wednesday, April 1, 2009 9:42 AM EDT




There is nothing like a quick trip to Europe to give some perspectives on life in the land of Sic Semper Tyrannis.

Students in Vienna rejoice in the fact that teachers threaten to walk out over work demands; banks shake at the prospect of losing their shirts in Eastern Europe; and everywhere I go, I see nothing but windmills, solar power panels and mountain streams churning electricity for the multitudes throughout the continent's cities.

Uranium might be on the minds of us in Virginia, and especially Pittsylvania County, but it is yesterday's technology in Europe. Austria voted to shut down its nuclear power plant in 1978 and has not started one up since.

Demonstrations continue against planned nuclear power plants in the Czech Republic, and across the rolling hills of Lower Austria, outside Vienna, windmills turn slowly but surely, producing power for thousands.

Twenty years ago, Viennese scientists and politicians worked together to produce a unique heating system for public buildings throughout the city. They built a massive incinerator for the city's trash, saving precious land and heating literally hundreds of buildings in the city with the refuse of its people.

It seems that Sigmund Freud has not been the only person in that town who has been busy thinking deep dreams about the future.

Travel puts things in perspective and nothing needs perspective more than the current debate over uranium mining in Virginia. I thought about this a bit during a recent train ride from Vienna to Salzburg and came up with what I think might be a new way of looking at things.

Suppose we approach the issue in a series of questions; rather than overwhelming our opponents and embarrassing our friends. Let's take a moment to consider these issues.

First of all, there is the "Strategic" question.

Uranium in Virginia will be a strategic necessity we are told; our future security demands a uranium mine in Pittsylvania County.

Now we hear that the company that would mine uranium is a fully-owned foreign company (VUI) with just a few local investors.

How does uranium mined by a foreign company contribute to the security of the United States?

Are we more secure by depending upon foreign agents for our energy needs? Does paying the Saudis for oil strengthen us as a nation?

Will paying Canadians for our uranium make us equally secure? The absurdity of this argument in light of the true origins of VUI is clear. Let's move on to question two.

Then we have the "Prosperity" question.

We are told that uranium mining in the county will bring us untold wealth and prosperity.

This is a fine argument for a nation currently in the grips of a near-depression. Alas, it, too, seems rather odd.

A century ago, the people of this area were told that textiles would bring untold prosperity. Dan River Mills kept other industries (and highways) out of the area for just this reason.

It is 2009 and Dan River Mills is nowhere to be seen (unless one travels to India) and the unemployment rate of the county is higher than average.

Tobacco was to be our savior and look at that industry now. In fact, hardly any Virginians at all are employed pulling tobacco in our fields. We import workers from over the border (and I do not mean North Carolina) to harvest what little crop the industry has left us.

Should a uranium mine come to this area, it, too, will monopolize our economy.

So, who will work there and what will that "prosperity" look like? As work in a mine is not exactly a career, but more like a job, my guess is that most of the workers will come from the same place we get our tobacco workers.

Watch out, Don Merricks, your campaign issues can come back to haunt you.

Here's another thought. If uranium mining brings us such wonderful prosperity, why is legislation in the works to limit mining to this county, when considerable deposits have been located in other counties such as Orange and Fauquier?

Should not all Virginians have a share of this prosperity and not merely Pittsylvania County?

Or could it be that our friends in those more fashionable areas realize the value of their land, air, water and way of life. They are perfectly content to allow us (and to legislate us) alone to share in the "wealth" that mining will bring.

There is always the "Political" question.

It is clear to all that Pittsylvania County is a conservative area politically. Politicians run regularly on the platform that they do not believe in big government and sending them to Richmond or Washington will work to stem the tide of bureaucracy in all our lives.

Each individual should be free to lead his or her life unencumbered by the watchful eye of Big Brother. Yet, these same politicians are on the edge of, if not already, advocating for the presence of uranium mining in Pittsylvania County.

Do they not realize that the imposition of this industry upon this county will automatically send out a swarm of bureaucrats to check our every breath, our every sip of water and our ever spade of topsoil?

Who will be safe from the regulation enforcement of this most heavily regulated of industries? And who will pay for the salaries of these officials?

My guess is that the taxpayers will pay for this army of government workers in the form of higher taxes. Taxpayers: that means you and I will pay to enforce the regulating of an industry that neither you nor I will prosper from (unless you are one of the few investors who actually LIVE in Virginia).

Finally, of course, there is the "Future" question.

Those who oppose uranium mining in Virginia are often called folks without a vision for the future. They are stuck hopelessly in a past that can never move out of its hippy-like dream of pastoral bliss.

Truly, nuclear power and its fellow traveler, uranium mining, is the look of the future. And it "is" the look of the future, if your future looks like 1970.

The nuclear power industry is always one accident away from extinction. We were lucky at Three Mile Island in 1979. The Russians were not so lucky at Chernobyl in 1986. Who is to say how our luck will run the next time.

Although he did allocate money for nuclear power development in the present budget, President Obama has placed far greater emphasis upon wind, solar and water power.

That is the true look of the future, and if our county were to live up to the meaning of that word, future, Mr. Coles and his Canadian cohorts would be filling their fields out in Sheva with the kind of windmills I saw generating power outside of Vienna.

They would not have plans to dig a large, open-pit wasteland as a memorial to their myopic vision of a world hopelessly mired in the past.

What about the "Environmental" question?

I left this one out on purpose. It is far too complex and delicate to treat here.

Needless to say it IS the question that worries us most and seems to be the one that is least answered in a satisfactory way from either side.

On this issue, we have no answer, we have only a very worrisome and permanent question that, should uranium mining find its way to Pittsylvania County, very many folks, here and as far away as Virginia Beach, will spend a great many years and tears worrying about.

The decision about uranium mining is one that will permanently change the face of this county and this Commonwealth.

It will touch citizens in every aspect of their lives. It will affect their health, their economic well-being, their property and their happiness.

Our politicians are charged with important decisions. If they miss this one, not only should their decision be in question, but the very nature of their ability to serve their constituents wisely and represent their interests fairly will be placed in doubt.

The minimum they can expect is to face defeat in the next election.

Like I said, travel broadens the mind. It also gives one time to think about things at home.

No one whom I met abroad could believe that Virginia was about to take this step...backwards as it were... if the Commonwealth approves uranium mining in Pittsylvania County.

It was as if I had said we were considering the establishment of livery stables and the production of horse shoes. As they say in German: other countries, other customs...

Richard Dixon

Chatham

http://www.wpcva.com/articles/2009/04/01/chatham/opinion/opinion01.txt

Friday, March 20, 2009

Mines and Plants Hit by Low Prices, High Costs

March 20 (Reuters) -

The global financial crisis and sharp falls in metals prices have forced several companies to abandon or put on hold their plans to bring new mines onstream.

Some existing producers also have shut down or curtailed output at mines and plants as high costs and low prices bite.

Below are details of major projects and facilities affected in recent months, as well as other related news.

March 20 - South African ferrochrome producer Hernic said it shut all its four furnaces at the start of this year.

March 19 - European Goldfields said further ramp up of output at its Stratoni lead-zinc mine in Greece would be delayed.

March 19 - Uranium miner Denison Mines will temporarily suspend production at its Sunday and Rim mines in the western United States and will likely shut its White Mesa mill in May.

March 19 - Norsk Hydro affiliate Alumina Partners of Jamaica (Alpart) said it plans to shut its 1.65 million tonnes a year alumina refinery for a year from May 15.

Read the rest of this article which includes a reverse chronology re: uranium mine and/or nuclear power slow-downs, cut-backs, stoppages, and other negative indicators back to Jan, 27, 2009 here: http://www.forbes.com/feeds/afx/2009/03/20/afx6192957.html