| Guess what? Our recent investigation shows the | | | | its New Mexico facility would be enriching could come |
| uranium to be enriched in the LES/Urenco proposed | | | | from at least one foreign source, Canada. Because |
| enrichment facility in Lea County, New Mexico may | | | | the uranium ore might be sourced from Cameco, yet |
| come neither from uranium properties in New Mexico | | | | another country's uranium could be supplying the New |
| nor anywhere else in the United States. Just as New | | | | Mexico enrichment facility: Kazakhstan.Cameco plans |
| Mexico's nuclear/uranium mining renaissance was | | | | to boost uranium mining in this former Soviet country to |
| ready to get underway, a deal may have already | | | | a level which might approach its uranium production in |
| been cut to enrich uranium mined in a foreign country. | | | | the Athabasca Basin. Kazakhstan recently joined the |
| Louisiana Energy Services (LES), through the | | | | "Putin Alliance" of uranium-producing countries. On June |
| consortium's general partner Urenco Ltd., may have | | | | 22nd, Kazakhstan signed a contract worth $1 billion to |
| struck a deal with Canadian-based Cameco Corp. Will | | | | supply Russia's Tekhsnabexport to supply Russians |
| this uranium come from Canada or | | | | with uranium through the year 2020. The Economist |
| Kazakhstan?According to New Mexico State Senator | | | | Magazine's Economic Intelligence Unit recently issued a |
| Carroll H. Leavell, the uranium ore to be enriched at the | | | | caution on this country.We asked our uranium industry |
| facility near Eunice, New Mexico facility would be | | | | analyst, David Miller, about this new twist in the LES |
| coming from outside the United States. Senator Leavell | | | | Urenco story. Miller is a third-term Wyoming legislator, |
| told StockInterview, "The uranium ore will be coming | | | | who is an original member of the Wyoming Energy |
| out of Saskatchewan." When we asked if the uranium | | | | Commission and a past member of the National |
| to be enriched in New Mexico would come from the | | | | Council of State Legislator's (NCSL) Energy |
| Athabasca Basin, an area hosting the world's richest | | | | Committee., now serving on a NCSL-related |
| grades of uranium and which is also located in northern | | | | committee. Miller is also president of Strathmore |
| Saskatchewan, Senator Leavell claimed he wasn't | | | | Minerals, a company which is now advancing its |
| sure where the Athabasca Basin was. But he told us | | | | properties through the permitting process in New |
| that Urenco Ltd informed him the uranium was coming | | | | Mexico. Miller told us, "The State of New Mexico may |
| from that western Canadian province.We can only | | | | miss out on the hundreds of millions of dollars of tax |
| speculate the uranium producer might be Cameco | | | | revenues from potential severance, ad valorem, sales |
| Corp. On July 22, 2002, Cameco signed a | | | | and other taxes the domestic industry would pay the |
| Memorandum of Agreement with LES, along with | | | | state to mine uranium in New Mexico. Instead, the |
| Urenco Ltd, Westinghouse Electric Company, Fluor | | | | foreign uranium pays zero taxes to enter the state for |
| Daniel and the affiliates of U.S. utilities: Exelon, Duke | | | | enrichment." In other words, Cameco or another may |
| and Entergy. In an email response to our inquiry, earlier | | | | be getting a free ride on taxes.Ominously, Miller asks |
| this week, Netherlands-based Urenco Ltd | | | | these questions, "The real question for New Mexico is |
| Communications Coordinator April Wildegose-Mistry | | | | this: What happens to the part of the uranium that |
| informed us, "Cameco Corp was part of the original | | | | does not go onto the fabrication plant? Does it stay in |
| LES project. They pulled out around March 2003 as | | | | New Mexico? Is it shipped back to Russia, Kazakhstan |
| they needed to focus on other business issues."We | | | | or Saskatchewan?" This gave us pause for thought. |
| have also asked to interview Urenco's CEO. Perhaps | | | | After it leaves New Mexico, how do we know it |
| he may clarify this matter for us. One industry insider | | | | would be used for civilian energy purposes? Could it |
| told us Cameco stated its continued support for the | | | | be transported elsewhere and be more highly |
| LES initiative after it withdrew as a partner. However, | | | | enriched? That's just speculation.Miller recommended |
| the recent joint venture company, Enrichment | | | | that New Mexico legislators demand the LES plant be |
| Technology Company, formed by Areva and Urenco | | | | fed uranium mined in New Mexico, not in Canada or |
| may open the possibility the uranium could also come | | | | Kazakhstan. "If this were to happen," Miller wrote in an |
| from Areva's uranium interests in Athabasca. AREVA | | | | email to us, "thousands of new mining jobs would be |
| is a Paris-based company offering technological | | | | created in areas of New Mexico which need the most |
| solutions for nuclear power generation, and electricity | | | | economic development." Once the world's leading |
| transmission and distribution.This development could | | | | uranium producer, New Mexico's Grants Uranium Belt |
| further irritate at least one New Mexico legislator. State | | | | is again being explored by more than a dozen |
| representative John A. Heaton from Carlsbad, New | | | | companies. Some hope to permit and operate new |
| Mexico, and who also sits on New Mexico's Energy | | | | uranium production centers in New Mexico. We trust |
| and Natural Resource Committee, was adamant about | | | | this latest wrinkle will awaken New Mexico's legislators |
| U.S. independence from foreign energy sources. He | | | | and help them protect uranium mining developments in |
| told StockInterview, "We need to use the assets we | | | | their states. Perhaps their voters, who might be looking |
| have and not be dependent upon foreign countries. I | | | | for higher paying jobs, would appreciate that.James |
| worry a lot about the dependence we have on other | | | | Finch contributes to and other publications. Visit to |
| countries."In this instance, Heaton might be getting a | | | | download your free copy of "Investing in the Great |
| double-whammy of foreign dependence. Not only is | | | | Uranium Bull Market: A Practical Investor's Guide to |
| Urenco Ltd a foreign-owned and controlled company | | | | Uranium Stocks. |
| (a Dutch/ British/German consortium), but the uranium | | | | |