SXR Preference for Underground Uranium Mining: Problems Ahead?

By: James Finch
Submitted: 2007-01-17 16:15:37
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Another core competency is underground mining. “I think the majority of the deposits we are looking at are underground,” Froneman explained. “There is some open pit potential. Of course, that is a skill that we have. Most of the prospectivity that we are looking at is underground.”

Make no mistake about the company’s plans. SXR’s Chief Executive is a strong advocate for conventional uranium mining. “The growth is really going to come through underground and open pit mining,” Froneman revealed. “As the uranium price goes up, the resources that become available are mainly in the open pit and underground environment.” Again, he politely derided non-conventional mining, “In fact, actually ISR (resource recovery) decreases.”

Unabashedly, Froneman boasted, “We are proud of being underground miners. It’s a skill we’ve developed over many years.” When we explained that local and county officials in Grants, New Mexico were more eager for the jobs underground and open pit mining would create, Froneman responded, “I do think it will come back, and of course, people always want the management jobs in mining companies.”

His biggest concern may be recruiting labor. “We have to find the people to do the underground work,” Froneman told us. “That is going to be a challenge, but I do believe it’ll change.” Our investigation, this past winter in Wyoming, discovered SXR may have to compete with Wyoming’s coal mines and others for workers. We reported Wyoming’s Secretary of State Joe Meyer advising uranium companies to bring their own workers. In our Wyoming Series Part 2 Meyer said, “We have an incredible shortage of construction workers right now. Construction projects are coming in 35 to 40 percent overbid, because there is so much work, no one can handle them.” Wyoming Mining Association spokesman Matt Grant echoed those remarks, explaining how various chambers of commerce and other civic groups were trying to recruit unemployed automobile workers from as far away as Flint, Michigan.

James Finch contributes to StockInterview.com and other publications. Visit http://www.stockinterview.com to download your free copy of “Investing in the Great Uranium Bull Market: A Practical Investor’s Guide to Uranium Stocks.” You can always write to James Finch at jfinch@stockinterview.com

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