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Uranium mine north of Grand Canyon to stay open

FLAGSTAFF, Ariz. — A mining company’s plan to stockpile uranium ore at a
mine north of the Grand Canyon has raised concern among environmentalists over
radioactive dust being swept across the landscape.

But Energy Fuels Resources Inc. said Thursday that there’s no need to worry
because a state permit requires that dust be monitored and controlled, no homes
are nearby, and the dust isn’t highly radioactive.

The company planned to place the Pinenut Mine on standby in July because of
decreasing prices for uranium. Company spokesman Curtis Moore said Thursday that
it makes more sense economically to keep the 30 to 40 workers onboard and
extract all the ore possible from the site through the first quarter of 2015,
avoiding shut-down and startup costs.

The ore will be stockpiled on a pad that stretches across 2 acres onsite
because of an earlier decision to at least temporarily shut down production
later this year at the company’s White Mesa Mill in Blanding, Utah. Moore said
officials are expecting to store the ore on a portion of the pad until prices
for uranium rebound.

“No matter how long that ore is out there, we have to maintain the site. We
have to monitor it,” he said. “It will be heavily regulated.”

The mine operates under a permit from the U.S. Bureau of Land Management.
Agency spokeswoman Deborah Stevens said officials are reviewing the operating
plan to see if the stockpiling of uranium ore at the site, about 35 miles south
of Fredonia near the Arizona-Utah border, falls within the scope of that plan.

Less than a handful of uranium mines have been operating in northern Arizona
recently. The mines owned by Energy Fuels lie in a nearly 1 million-acre area
around the Grand Canyon but outside the national park boundaries that was placed
off-limits to new mining claims in January 2012. Companies with existing claims
that were proven to have sufficient quantity and quality of mineral resources
could be developed under a decision by the U.S. Interior Department.

The Pinenut Mine was partially developed in the late 1980s, but it sat idle
until mid-2013. Energy Fuels expects to extract 250,000 pounds of uranium from
the mine between August and the time the mine closes next year, for a combined
600,000 pounds, Moore said.

Spraying water on the landscape has proven to be an effective dust-control
measure, he said. Other options include applying magnesium chloride to the
stockpile or covering it.

Roger Clark of the environmental group the Grand Canyon Trust said the
uncertainty over how long the uranium ore could sit at the site is unsettling.
Any water sprayed on the pile or rain that falls on it is diverted to a fenced,
uncovered catchment pond that small animals and birds can drink from before it
evaporates, he said.

“This could be another indefinite situation, just like the mines, where the
price of uranium doesn’t come up,” Clark said. “Then, once again, there is an
increased risk of harm to public resources in terms of radioactive dust.”

Energy Fuels has three aquifer-protection permits for the Pinenut mine from the
Arizona Department of Environmental Quality for a non-storm water pond, a
temporary waste rock stockpile and the ore stockpile. Department spokesman Mark
Shaffer said the company is required to keep any engineered feature in good
working condition.

While the department hasn’t discussed Energy Fuels’ latest announcement with
the company, Shaffer said: “We are comfortable that the application materials
provided originally for the stockpile demonstrate that they can comply with the
existing design and operational requirements.”


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