Carol Raulston
(202) 463-2610
craulston@nma.org

Luke Popovich
(202) 463-2620
lpopovich@nma.org

March 12, 2008

NMA Cites Consequences of Growing Dependence on Foreign Materials

Washington, D.C. - A growing and potentially damaging reliance on foreign metals and minerals should make Congress wary of measures that would further disadvantage the use of American resources, said an executive for Uranium One, Inc., today on behalf of the National Mining Association (NMA).

In testimony before the House Energy and Natural Resources Committee, Uranium One Executive Vice President of Corporate and Strategic Affairs Fletcher Newton cited several potentially negative consequences of America’s significant and growing dependency on foreign minerals and metals including aggravation of the U.S. balance of payments, unpredictable price fluctuations and supply disruptions due to political or economic instability.

Uranium is a primary example of this dependency, said Newton. The U.S. currently consumes more than 56 million pounds of uranium each year. Yet the U.S. produces only 4.5 million pounds, despite the fact that America possesses some of the world’s largest uranium deposits and has historically been a major uranium producer.

Newton said America has the world’s largest fleet of nuclear power plants that generate 20 percent of the nation’s electricity. At the same time, the U.S. produces less than 10 percent – and imports more than 90 percent – of the uranium it uses for nuclear power. Uncertainty over regulatory policies discourages investment in new production, he said, even though prices for uranium have climbed to record levels and the U.S. demand for uranium is expected to increase.

Newton drew on his extensive experience in citing factors that contribute to a climate of uncertainty for American hard rock producers. Among them, he said, is an overly burdensome regulatory and permitting process “that can take upwards of a decade to complete,” and the prospect of additional regulatory burdens for operators on federal lands, who account for the bulk of the nation’s metals production.

NMA supports efforts to reform the 1872 General Mining Law, said Newton, that do not add redundant layers of regulation to the existing framework that the National Academy of Sciences has already judged to be “effective.” For example, uranium production now complies with all the laws and regulations governing hard rock mining operations, and uranium processing must meet additional standards set by both the Nuclear Regulatory Commission and the Environmental Protection Agency, as well as numerous state agencies.

For the full text of Newton’s testimony, see NMA's website .