| Wyoming Governor Dave Freudenthal really likes | | | | some larger energy consuming markets. They |
| the current uranium bull market, "I hope the price | | | | have fewer miles of transmission lines to build if |
| of yellowcake stays up, and things get moving." | | | | they are going to get to California or Nevada. It |
| Yes, the Wyoming democratic governor strongly | | | | wouldn't seem illogical if I were a private investor |
| endorses uranium mining in his state. That would | | | | to look there first." |
| make sense because Wyoming is the largest U.S. | | | | What does the Governor have to say to the new |
| uranium producer. More than 40 percent of the | | | | flock of uranium development companies, joining |
| uranium reserves in the United States are located | | | | Cameco's Power Resources in mining Wyoming's |
| in Wyoming, according to the reserves and | | | | uranium? There are several companies, which |
| resource estimate published by the U.S. Energy | | | | have staked land, and are now beginning to move |
| Information Administration (EIA). Since hitting a | | | | their projects forward. Freudenthal advised, "They |
| bottom in late December 2000, the spot price of | | | | need to start allocating greater capital at a rate |
| uranium has soared by more than 500 percent, | | | | that the project sponsors are comfortable. We're |
| reaching a high of $38.50/pound at the end of | | | | past the speculators. People know it (uranium) is |
| February. The last time uranium traded this high, | | | | here. Nobody wants to hit the market too early. |
| President Ronald Reagan was into the second | | | | And they don't want to be too late. It'll move. I |
| month of his first term. | | | | just don't know when. But when it does, we're in |
| Unlike some states, where uranium mining is | | | | a position to respond to it. We've got the goods. |
| frowned upon, or banned, Wyoming welcomes | | | | We've got the right regulatory climate." |
| the industry with open arms. "We've always sort | | | | Would Governor Freudenthal invite or discourage a |
| of been comfortable with the uranium industry," | | | | public utility in building a nuclear power plant in |
| Freudenthal told "The uranium industry is part of | | | | Wyoming? "I don't have a problem with one. The |
| our history. It's not something that is frightening | | | | question really has always been, and most of |
| or alarming to us." Freudenthal clearly sees nuclear | | | | what we are focused on, right now, is getting |
| energy as a potential solution for the energy | | | | power lines built. If we don't have power lines, |
| crisis, "I don't think anybody has any reservations | | | | we're not going to get nuclear plants. We're not |
| that we need to have greater domestic capability | | | | going to get coal-fired plants. We're not going to |
| in energy. I think, in the circles that worry about | | | | get anything. Ours is an export state. There is not |
| those equations, there is clearly a role for nuclear | | | | enough internal demand for electricity to justify |
| power." | | | | the construction of a plant." Freudenthal added |
| Freudenthal urged the capital markets to act on | | | | Wyoming was "waiting to see if the larger |
| the energy crisis by turning to Wyoming and | | | | economy is ready for some nuclear power |
| mining the abundant supply of uranium, "There's | | | | plants." |
| got to be some clear signals to the capital | | | | Two years ago, his administration created the |
| markets that investment in this area will ultimately | | | | Wyoming Infrastructure Authority to work on |
| be rewarded. We certainly have the resource." | | | | getting power lines constructed. That may help |
| Since June 2004, publicly traded junior uranium | | | | remove the bug stalling the launch of Wyoming's |
| companies and speculators have created a staking | | | | first nuclear reactor, as well as exploiting the |
| frenzy in the state. Wyoming's Office of State | | | | state's most valuable renewable energy source, |
| Lands and Investments reported developers are | | | | wind. "We've got five or six areas that are |
| snapping up tens of thousands of acres of state | | | | world-class wind resources. We have people who |
| leases. The reading room, where prospectors and | | | | want to build the turbines, but they have got to |
| developers study potential federal lands for leasing | | | | have access to the power grid. And I think the |
| purposes in the Cheyenne office of the U.S. | | | | same is true in terms of whether it is a nuclear |
| Bureau of Land Management (BLM), was filled to | | | | power plant, a coal-fired plant or this new |
| capacity during a recent visit by the editorial team. | | | | combined-cycle plant, where you can convert coal |
| asked if the unusually high level of staking activity | | | | to gas. Ultimately, the marketplace will decide |
| in Wyoming by publicly traded companies, such as | | | | which way they're going to go. But, no matter |
| Strathmore Minerals (TSX: STM; Other OTC: | | | | which one they do, I know my chances of getting |
| STHJF), Energy Metals Corporation (TSX: EMC), | | | | it in Wyoming are greater if I have figured out |
| Kilgore Minerals (TSX: KAU), UR-Energy (TSE: | | | | our power line routes." |
| URE) and Uranerz Energy (OTC BB: URNZ), was | | | | Freudenthal is popular, can think on his |
| merely speculative, Freudenthal responded, "I think | | | | cowboy-boot clad feet, and can be decisive. And |
| we're past the sort of speculation of people | | | | he is working on the power line routes, not just |
| running through and picking everything up. We're | | | | dreaming about what could be done. "We have |
| down to serious players trying to make serious | | | | some hopeful things," he explained. "We have |
| decisions." Good news for the above-mentioned | | | | been working with California on the Frontier Line." |
| uranium development companies: The Governor | | | | And what is the Frontier Line? U.S. Secretary of |
| of Wyoming believes you mean business, and he's | | | | Energy announced in a press release a year ago, |
| doing everything he can to encourage you! | | | | "This proposal exhibits the boldness and innovation |
| Freudenthal was optimistic more companies would | | | | the West is traditionally known for, as well as the |
| bring their projects to Wyoming, "These are not | | | | multi-state cooperation and big-picture thinking |
| light investments. But you also don't go out and | | | | required to make regional markets thrive." |
| re-activate uranium production, if at the end of | | | | Secretary Bodman praised Governors |
| the day, you don't have a buyer." Governor | | | | Schwarzenegger, Freudenthal, Guinn and |
| Freudenthal is a good listener and acts quickly and | | | | Huntsman, saying, "... the 'Frontier Line' project will |
| decisively when facing facts. For example, when | | | | begin the process of ensuring reliable electricity |
| informed him that decommissioned Russian | | | | for some of our fastest growing Western |
| nuclear warheads now powered about one in | | | | States." |
| every twenty electric light bulbs in the United | | | | Being an export state, Wyoming has done well |
| States, and that the swords-for-plowshares | | | | during the recent boom in commodities, enjoying |
| arrangement might end in 2013 (end of HEU), | | | | the rising royalties from the production of oil, |
| Freudenthal responded, "If that timing is correct, | | | | natural gas, coal and uranium. This past year, the |
| then they should already be making decisions to | | | | state built up a surplus of nearly $2 billion. How |
| invest in Wyoming. I hope they do." | | | | does Freudenthal plan to spend this money? |
| A large number of Canadian and European | | | | "We're putting a chunk into college scholarships, a |
| financiers believe there is a nuclear renaissance. | | | | chunk into infrastructure and a chunk into human |
| Where does the Governor stand? "We're ready," | | | | capital investments." And next year, Freudenthal |
| Freudenthal shot back. "They just need to start | | | | will have more such chunks to spend as high |
| bringing the projects and the money (into | | | | energy prices continue to demand the extraction |
| Wyoming). I think we have a very good | | | | of those abundant resources Wyoming generously |
| regulatory climate. I think if they move into the 'in | | | | offers the rest of the United States. |
| situ' (ISL) mining, we've got some experience with | | | | As a side note, Wyoming is a "red state," but |
| that." And if the public companies bring their | | | | with a very popular governor who is ironically a |
| projects to Wyoming, how does Governor | | | | Democrat. While we did not discuss Freudenthal's |
| Freudenthal feel? "This state is IN PLAY!" he | | | | political ambitions, Wyoming's previous leading |
| exuberantly announced. | | | | political personality has been serving as |
| Asked to compare Wyoming with New Mexico, | | | | Vice-President of the United States through most |
| once a top uranium-producing state, he | | | | of this decade. Memo to Hillary Rodham Clinton: |
| responded, "This state, historically, is just much | | | | Don't overlook Dave Freudenthal if you want to |
| more comfortable with commodity development." | | | | woo the vast number of red states between the |
| On the other hand, he somewhat deferred to | | | | east coast and the left coast. This governor could |
| New Mexico's own nuclear renaissance, where | | | | help get your old room back at 1600 Pennsylvania |
| rumors are flying of a new nuclear power plant | | | | Avenue. |
| and the expansion of uranium mining and nuclear | | | | COPYRIGHT © 2007 by StockInterview, Inc. |
| in that state, explaining, "New Mexico is closer to | | | | ALL RIGHTS RESERVED. |