ABSTRACT
This chapter focuses on the economics of US uranium deposits--in particular, the economics of lower grade open pit mines in Wyoming that make possible exploitation of thin pod-like deposits that require extraordinary ore grade control and extremely selective mining. The looming "shortage" of uranium remains uncertain because of a lack of a national policy toward the development of nuclear power and the desire of the utilities for assurance of long-term uranium supplies for new power plants. The break in the rate of cost inflation after 1973 increased the cost of producing uranium as it has increased the cost of most mineral production. Expected revenues, royalties, capital and operating costs, and taxes of a mining project occur over time for a given uranium project. A factor that increases return to stockholders from uranium projects is the use of loan capital. The proposed uranium milling site is located adjacent to the surface mine to minimize haulage costs.
