Economic Development
· Virginia Uranium Inc. (VUI) claims that it will create 1,000 jobs, and bring $5 billion of economic development to Virginia.
· These numbers are all based on the shaky assumption that the price of uranium will not fall.
· What happens when the spot price of uranium bottoms out and it no longer becomes economically feasible to mine?
· What happens to those employees when VUI is forced to shutter the mine because it can no longer make a profit?
· Uranium prices are already dropping - watch for this trend to continue
· Virginia Uranium Inc. (VUI) claims that it will create 1,000 jobs, and bring $5 billion of economic development to Virginia.
· These numbers are all based on the shaky assumption that the price of uranium will not fall.
· What happens when the spot price of uranium bottoms out and it no longer becomes economically feasible to mine?
· What happens to those employees when VUI is forced to shutter the mine because it can no longer make a profit?
· Uranium prices are already dropping - watch for this trend to continue
Environmental Conditions
· The United States has no history of regulating the mining of uranium in a climate such as Virginia's – a wet climate with a history of severe weather occurrences from hurricanes to flash-floods, nor'easters to earthquakes.
· All mining in this country has occurred in a completely different environment - arid climates in remote regions, away from any populations – low rainfall means radioactive pollutants are more easily contained.
· The United States has no history of regulating the mining of uranium in a climate such as Virginia's – a wet climate with a history of severe weather occurrences from hurricanes to flash-floods, nor'easters to earthquakes.
· All mining in this country has occurred in a completely different environment - arid climates in remote regions, away from any populations – low rainfall means radioactive pollutants are more easily contained.
Virginia's Lack of Experience
· There has never been uranium mining in the Commonwealth of Virginia.
· Virginia has a reputation for requiring fewer regulations, not more – exactly the opposite of what is needed here. A process with such enormous implications as this must have an attitude of going above and beyond on safety, which is not the norm in Virginia.
· Virginia also has a track record of regulatory failure in mining situations, such as its recent failure to protect coal miners from black lung disease – the stakes for uranium miners are much higher.
· There has never been uranium mining in the Commonwealth of Virginia.
· Virginia has a reputation for requiring fewer regulations, not more – exactly the opposite of what is needed here. A process with such enormous implications as this must have an attitude of going above and beyond on safety, which is not the norm in Virginia.
· Virginia also has a track record of regulatory failure in mining situations, such as its recent failure to protect coal miners from black lung disease – the stakes for uranium miners are much higher.
Aren't We Like Canada?
· Virginia is often compared to Saskatchewan, Canada, where there is a uranium mine.
· Saskatchewan gets half the annual precipitation that Virginia gets, and most of that is snowfall.
· They do not get the extreme weather events that Virginia experiences
· Saskatchewan also has far less risk than Virginia – the area of the mine has only 1/5 the population of Pittsylvania County, the proposed mine location, and 1/50 the population of Virginia.
· No water sources in Saskatchewan supply major metropolitan areas, such as Hampton Roads (1.7 million population).
· Additionally, the Saskatchewan project has been plagued with its own difficulties, which caused a multi-year shutdown of operations - certainly not something VA wants to emulate.
· Virginia is often compared to Saskatchewan, Canada, where there is a uranium mine.
· Saskatchewan gets half the annual precipitation that Virginia gets, and most of that is snowfall.
· They do not get the extreme weather events that Virginia experiences
· Saskatchewan also has far less risk than Virginia – the area of the mine has only 1/5 the population of Pittsylvania County, the proposed mine location, and 1/50 the population of Virginia.
· No water sources in Saskatchewan supply major metropolitan areas, such as Hampton Roads (1.7 million population).
· Additionally, the Saskatchewan project has been plagued with its own difficulties, which caused a multi-year shutdown of operations - certainly not something VA wants to emulate.
Tailings Disposal
· VUI has stated that they are considering placing the radioactive byproduct of the mining (tailings) into container cells below ground, which, as they say, will eliminate any threat of contamination.
· While below-grade disposal is consider best practice by the NRC, there are exceptions granted for both environmental and economic reasons.
· The Piñon Ridge uranium mining project in Colorado was recently granted an exception because of difficulties (i.e. expense) of digging far enough into the rock to hold all the tailings.
· It could be environmentally impossible to bury the tailings below grade because of the high water table – VUI has yet to do a groundwater analysis to determine if below grade disposal is environmentally feasible. The original 1983 "Evaluation of Uranium Development in Pittsylvania County Virginia" by Marline and Union Carbide states:
"Based on a conceptual feasibility level geotechnical investigation, foundation conditions are suitable for construction of the proposed above grade type management facility. To provide uniform foundation support and placement of tailings above the water table, it will, however, be necessary to construct a base (foundation) at least five feet above the present ground surface. Below grade tailings disposal is not practical in this area because of the high water table."
· Even if below grade disposal were to happen, this only alleviates concern for surface water contamination – groundwater, the surrounding wells and cisterns would all still be threatened.
· VUI states that they will mix part of the tailings with a cement-like substance and store them in the empty mine shafts. This process has never been practiced in uranium mining – this is not the time or place for experimentation with new processes that have no history of success!
· But if VUI were to decide they were not going to bury the tailings below grade, there is nothing the Commonwealth of Virginia can do about it – Virginia cannot pass regulations requiring below-grade disposal because the NRC's jurisdiction preempts this area of regulation. Unless Virginia becomes an Agreement State, however the NRC chooses to permit the project is what will happen.
· VUI has stated that they are considering placing the radioactive byproduct of the mining (tailings) into container cells below ground, which, as they say, will eliminate any threat of contamination.
· While below-grade disposal is consider best practice by the NRC, there are exceptions granted for both environmental and economic reasons.
· The Piñon Ridge uranium mining project in Colorado was recently granted an exception because of difficulties (i.e. expense) of digging far enough into the rock to hold all the tailings.
· It could be environmentally impossible to bury the tailings below grade because of the high water table – VUI has yet to do a groundwater analysis to determine if below grade disposal is environmentally feasible. The original 1983 "Evaluation of Uranium Development in Pittsylvania County Virginia" by Marline and Union Carbide states:
"Based on a conceptual feasibility level geotechnical investigation, foundation conditions are suitable for construction of the proposed above grade type management facility. To provide uniform foundation support and placement of tailings above the water table, it will, however, be necessary to construct a base (foundation) at least five feet above the present ground surface. Below grade tailings disposal is not practical in this area because of the high water table."
· Even if below grade disposal were to happen, this only alleviates concern for surface water contamination – groundwater, the surrounding wells and cisterns would all still be threatened.
· VUI states that they will mix part of the tailings with a cement-like substance and store them in the empty mine shafts. This process has never been practiced in uranium mining – this is not the time or place for experimentation with new processes that have no history of success!
· But if VUI were to decide they were not going to bury the tailings below grade, there is nothing the Commonwealth of Virginia can do about it – Virginia cannot pass regulations requiring below-grade disposal because the NRC's jurisdiction preempts this area of regulation. Unless Virginia becomes an Agreement State, however the NRC chooses to permit the project is what will happen.
Becoming an Agreement State
· In order to assume the NRC's regulatory authority and set its own regulations for tailings disposal, Virginia would have to become what's called an Agreement State
· Becoming an Agreement State is a long, drawn-out process that takes many years
· It is doubtful that Virginia would invest the millions of dollars required to establish the oversight that would be required for the NRC to grant the Commonwealth Agreement State status
· In order to assume the NRC's regulatory authority and set its own regulations for tailings disposal, Virginia would have to become what's called an Agreement State
· Becoming an Agreement State is a long, drawn-out process that takes many years
· It is doubtful that Virginia would invest the millions of dollars required to establish the oversight that would be required for the NRC to grant the Commonwealth Agreement State status
Taxpayers Footing the Bill
· The McDonnell Administration has already spent over $600,000 in its Uranium Working Group and consultants, developing the framework for what regulations may look like
· Should the moratorium be lifted, even if Agreement State status was not pursued, a new branch of a State agency will have to be created to regulate and monitor this new mining branch. There are currently no agencies and no personnel equipped to do this. All this will be at taxpayers' expense.
· Currently VUI is the only company interested in mining uranium in Virginia. So thousands (if not millions) of taxpayers' dollars are going to accommodate one company's interests
· The McDonnell Administration has already spent over $600,000 in its Uranium Working Group and consultants, developing the framework for what regulations may look like
· Should the moratorium be lifted, even if Agreement State status was not pursued, a new branch of a State agency will have to be created to regulate and monitor this new mining branch. There are currently no agencies and no personnel equipped to do this. All this will be at taxpayers' expense.
· Currently VUI is the only company interested in mining uranium in Virginia. So thousands (if not millions) of taxpayers' dollars are going to accommodate one company's interests
