UPDATE: US Proposes Halting Uranium Mining Near Grand Canyon
July 20 2009 - 6:50PM
Dow Jones News
The U.S. Interior Department on Monday proposed suspending
review of new mining claims on Arizona lands near the Grand Canyon
National Park for two years while it studies the possibility of
removing about 1 million acres of federal land from new uranium
mining.
About 10,600 current mining claims are located in the proposed
withdrawal area and several proposed uranium mining operations are
waiting for approval from the state of Arizona, the agency said.
The proposed removal of the area from uranium mining wouldn't
affect any other activities on the land, the agency said.
Lawmakers and environmental groups who have been pressing to
halt uranium mining near the Grand Canyon hailed the move.
"The Grand Canyon is too important to waste, and the Obama
administration recognizes that," U.S. Rep. Raul Grijalva, D-Ariz.,
said in a statement.
Grijalva reintroduced legislation this year that would
permanently ban uranium and other mining on 1 million acres in and
around the Grand Canyon. A hearing on the proposal is scheduled for
Tuesday by the U.S. House Natural Resources Committee.
The lands in and around the Grand Canyon contain uranium
deposits that have gained in value as plans for new nuclear power
plants have driven up uranium prices over the past few years. Spot
market prices for uranium rose as high as $136 a pound in mid-2007,
up from $7 a pound in 2000, although prices have dropped since to
about $50 a pound amid the global recession.
As requests to mine for uranium on federal lands near the Grand
Canyon rose along with prices, local officials became concerned
that a uranium mining boom would cause contamination of the
Colorado River, which runs through the area and supplies drinking
water to several million people in southern Nevada and California.
In June, the Metropolitan Water District of Southern California,
which uses the Colorado River, among other sources, to supply
drinking water to 19 million people, asked Interior Secretary Ken
Salazar to "carefully evaluate" potential public health hazards
that uranium mining could pose to the Colorado River.
"We rely on high-quality Colorado River supplies and have
concerns over any activities that could potentially threaten the
quality of that supply," the water agency's general manager,
Jeffrey Kightlinger, wrote in the letter.
The Interior Department has received similar letters from former
Arizona Gov. Janet Napolitano, who is currently U.S. Homeland
Security secretary, and from the Southern Nevada Water Authority,
which serves more than 42 million people in and around Las Vegas,
most of them visitors from out of town.
In June 2008, the House Natural Resources Committee asked the
Bush administration to temporarily suspend its review of mining
claims on the lands, called the Arizona Strip, pending further
study into whether the lands should be protected from mining. The
Interior secretary at the time, Dirk Kempthorne, rejected that
request.
The Grand Canyon itself attracts more than 4 million visitors a
year, is home to rare and protected plant and animal species and is
considered sacred by American Indians who live there. But it's also
teeming with uranium supplies, which is becoming an increasingly
important energy fuel as utilities in the U.S. and other countries
plan to build new nuclear reactors to keep up with growing demand
while reducing greenhouse-gas emissions. Nuclear power plants are
considered zero-emission energy sources, although the radioactive
waste they produce continues to draw criticism.
Companies that have filed mining claims on the Arizona Strip,
include Nu Star Holdings Inc. (NSHJ), Liberty Star Uranium &
Metals Corp. (LBSU), Uranium One Inc. (UUU.T) and Energy Metals
Ltd. (EME.AU), according to an analysis of Bureau of Land
Management data by the Environmental Working Group in
Washington.
Denison Mines Corp. (DNN) of Canada, among other companies,
plans to expand uranium mining on the Arizona Strip as early as
this year, a move opposed by environmental groups and the local
Havasupai Indian tribe.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com