US uranium mining industry: background information on economics and emissions

Abstract

Employment in the mining and milling sectors has dropped 31% and 17% respectively in 1982. Capacity utilization at mills was 45% in 1982 with only 14 mills still operating by year end out of 20 at the beginning of the year. Many mines were at 50% capacity or on standby status. The depressed nature of the u.s. uranium mining industry can be attributed mainly to a weakened demand for uranium fuel and a low commodity price caused by oversupply.Representative forecasts were developed for reactor fuel demand and u 3 o 8 production for the years 1983 and 1990. Reactor fuel demand is estimated to increase from 15,900 tons to 21,300 tons u 3 o 8 respectively. u 3 o 8 production, however, is estimated to decrease from 10,600 tons to 9,600 tons respectively. This projected decrease in u 3 o 8 production can be attributed to a predicted increase in imports and a predicted continuation of inventory liquidation. In 1983, imports are estimated at 28% of uranium used in the u.s •• increasing to an estimated 37.5% in 1990.A field examination was conducted of 29 selected underground uranium mines that represent 84% of the 1982 underground production. Data was gathered regarding population, land ownership and private property val1Jation. Out to 2 km total population was 618 persons. Average land ownership was 22% private, 17% mining company and 61% government. The value of land and structures was l.l estimated at $9,378,270 out to 2 km. The annual cost to control land out to 2 km was estimated at $3,012,000 equivalent to a $0.29 per pound u 3 o 8 increase in the cost of production based on 1982 production.An analysis of the increased cost to production resulting from the installation of 20-meter high exhaust borehole vent stacks was conducted. For a most likely case, increased cost would be $0.493 to $0.881 per ton of ore or $0.062 to $0.242 per pound of U30g.An assessment was made of the current and future 222Rn emission levels for a group of 27 uranium mines. It is shown that 222 Rn emission rates are increasing from 10 individual operating mines through 1990 by 1.2 to 3.8 times. But for the group of 27 mines as a whole, a reduction of total 222 Rn emissions is predicted due to 17 of the mines being shutdown and sealed. The estimated total 222 Rn emission rate for this group of mines will be 105 Ci/yr by year end 1983 or 70% of the 1978-79 measured rate and 124 Ci/yr by year end 1990 or 83% of the 1978-79 measured rate.