COAL, URANIUM & OIL SANDS — U.S. Energy prepares for production

The Utah Department of Environmental Quality (DEQ) has issued a groundwater discharge permit to U.S. Energy (USEG-Q) for the Shootaring Canyon uranium mill in southeastern Utah.

With this final permit, the company can begin production at the 750-ton-per-day mill.

In May 1997, U.S. Energy, through its subsidiary, Plateau Resources, received licence approvals from the Nuclear Regulatory Commission (NRC) to resume operations at Shootaring. The mill shut down in 1982 after only two months under construction. U.S. Energy acquired the mill and related mine sites in 1993. A US$6.9-million cash bond covers reclamation obligations.

The company has a year’s supply of stockpiles at the mill, and these are estimated to contain more than 600,000 lbs. uranium.

The DEQ also approved a new liner system for the tailings pile at the mill. With an expected lifespan of 30 years, it can contain more than 123 million cubic ft. of material. Plateau will submit the final liner design to the NRC during April for review. Approval is expected after 90 days. Construction of the liner will take up to a year.

Shootaring is one of six uranium mills in the U.S. Riverton, Wyo.-based U.S. Energy and its affiliates own a 50% stake in the Sweetwater uranium mill in Wyoming, which is currently on standby.