A proposed uranium mine and mill in Pittsylvania County is encouraging the region’s economy by as much as 300 million U.S. dollars annually, according to a study commissioned by Virginia Uranium Inc. The study, released last week, was done by Lyntek Inc., a Lakewood, Colo., company that provides engineering and feasibility studies for the mining industry.
Uranium Virginia, which announced plans three years ago to uranium mining exploration in Coles Hill about six miles northeast of Chatham, Lyntek hired the potential economic impact of the proposed mine and mill at the request of the True Del Lee, Chairman of the Study Commission Virginia Coal and Energy subcommittee uranium mining.
Ware said the report, the Coles Hill conceptual study entitled “provides essential information for a proposed socio-economic study on uranium mining and milling expected to begin this fall.
The subcommittee held a public meeting Tuesday at Chatham High School to gather information on the scope of the proposed socio-economic study.
Discovered in the early 1980′s, the Coles Hill uranium deposit is one of the largest in the United States and an estimated value of $ 7,000,000,000.
“Generally we have found that the project appears viable and generate significant economic benefits,” said Lyntek.
According to the study, the uranium mine and mill requires an initial investment of $ 200 million to 225 million dollars.
Together with the additional annual expenditure, the total project is estimated at 350 million U.S. dollars to $ 400 million, Lyntek said.
The company based its estimate on the production of at least 1 million tons of ore per year and 2 million pounds U3O8, a mixture of uranium oxides in the vernacular “yellowcake” produced after milling.
Lyntek said the construction of the mine and mill will be approximately one year and employ 250-350 people.
Once the mine and mill operations, then the employment is estimated at 300-350 with an annual payroll of $ 19000000-23000000 dollars.
“The employee salary would characterize the region and a mining and milling environment,” said Lyntek.
Salaries are expected to range from $ 35,000 to $ 250,000 per year based on specialization and management level, with salaries of $ 20 to $ 35 per hour, including benefits.
The mine and mill will employ managers, engineers, geologists, metallurgist, accountants, supervisors safety, technical trainers, radiation safety officers, safety, mine engineers, administrators, purchasers, mining equipment operators, mobile equipment operators, electricians , mechanics and maintenance employees.
The project, a lifetime of 30-35 years, the first expected to revenue in the neighborhood of $ 100 million to 140 million dollars a year to produce, depending on production rates and ore grades.
“In addition there will be operating the mine and the mill will require and will be invested in local and regional community,” said Lyntek.
Virginia Uranium is expected to annually 20 million U.S. dollars to buy up to $ 30 million in services and supplies, bringing its annual direct economic impact on both labor and materials to $ 40 million to 50 million dollars, said Lyntek.
“Experience in mining Community suggests that indirect aid requirements is approximately six times the cost of mining that labor and operational costs are included, together. The direct and indirect economic benefit is somewhere on the order of $ 240 million to 300 one million U.S. dollars, “Lyntek closed.
The full study is conceptual Coles Hill uranium study available under the link on the Virginia Commission on Coal and Energy on the website, http://dls.state.va.us/cec.htm.
source:wpcva.com
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