H DN AR CL S

HRI president defends uranium mining process
Can't attend reservation meetings

By Kathy Helms
Diné Bureau

FORT DEFIANCE — The president of Hydro Resources Inc. says that as much as he would like to attend today's uranium in-situ leach mining forum at Red Rock State Park, it's just not possible.

Mark Pelizza, president and key contact person for HRI, contacted The Independent Friday from HRI's Lewisville, Texas, office, saying he did not receive a notice from Church Rock Chapter about the meeting until Thursday morning and did not receive an agenda from Eastern Dine Against Uranium Mining (ENDAUM), sponsor of the forum, until around 8 p.m. Thursday.

"They have several experts there. I just haven't had time to get our expert on the other line yet. It's unfortunate. What we'll do is strongly recommend that we reschedule it because we encourage these types of meetings," Pelizza said.

ENDAUM is hosting the uranium forum today at the Red Rock State Park Convention Center. On the agenda is a technical presentation by Richard Abitz and Mike Wallace for ENDAUM. Pelizza, in a letter to Church Rock officials dated Friday, said, "Because of the late notice it has been impossible to make the necessary arrangements to attend. Given that Dr. Abitz and Mr. Wallace are planning to present technical information, I believe that it is important to have our expert, Mr. Bartels, there. However, I have not been able to reach him and have a previous commitment myself.

In the absence of HRI experts, today's uranium forum will continue as planned with presentations on ISL mining by ENDAUM's technical experts.

Pelizza said there's nothing wrong with HRI's process and he believes that good communication among all parties involved will resolve concerns, "but we just haven't had the ability to have that communication yet. We strongly, strongly encourage that communication."

ISL, or solution mining is very different from conventional mining that has occurred on Navajoland in the past, according to Pelizza. "Solution mining involves drilling wells into the ore zone and circulating the natural water. To the natural water we add oxygen, and possibly the addition of slight amounts of carbonate 'club soda.'

"The oxygen primarily will oxidize or rust the uranium. When uranium is rusted it's easily washed from the rock with a club soda solution. It's pumped to the surface and the uranium is removed from the water with an ion exchange system, which is essentially a very large Culligan water softener. And that's really the mining process."

Of course, it would be on a much larger scale, he said. When mining is complete, the water is filtered through a reverse osmosis unit to clean it to concentrations that were essentially equivalent to background conditions. But Pelizza cautioned,"The water in these uranium ore bodies prior to mining is rich in uranium, so it's returned to levels of uranium concentrations in the water that may have existed prior to mining."

The president of HRI hailed last week's decision by the U.S. Nuclear Regulatory Commission that postpones his company's plans to go ahead with ISL mining on Section 8 until after HRI submits documents pertaining to financial assurance.

In the first phases of the hearing for Church Rock Section 8, according to Pelizza, the judge ruled, that all safety concerns had been met, including groundwater quality concerns. "In terms of any safety issues, he concurred with HRI and the NRC staff. What he did request is essentially three different pieces of additional information that I look at as housekeeping-type items. One, he requested that we use a procedure for plugging wells that was essentially what the Intervenors (ENDAUM) wanted. It's called a tremie tube procedure. What that is, is it's the difference between pumping the cement into the well from the bottom up vs. pumping the cement into the well from the top down."

Pelizza said there is not a huge difference in costs, and though his company has always plugged its wells from the top down, "if the NRC wants it from the bottom up, we'll do it from the bottom up, if the state engineer approves it. Otherwise it would be satisfactory to do it from the top down."

A tremie tube, he explained, is essentially a hose "which we fish down to the bottom of the well and pump cement from the bottom of the well till it flows to the surface."The opposite way is how cement is poured for dams and bridge columns."That is, as you pour the cement, which is heavier than water, from the top of the well it pushes the water into the rock and sort of settles all the way into the well."

Which method is better is a matter of engineering opinion, he said."There is a concern that if you do it from the top down air bubbles may form in the concrete and it will not be as good. Whatever way it's required is what we will do."

Other items mentioned in the NRC order involved the way HRI calculates labor costs. "Being a mining company, an individual would wear what we say 'many different hats.' And that was questioned," according to Pelizza. "For example, if you have a person who is a maintenance foreman, would a maintenance foreman be someone that does electrical work and pipefitting work and welding? Or should we have separate electricians, pipefitters and welders?

"The NRC judge agreed that we probably would have to have three different people, or get a bid from an independent contractor. And that's what we're going to do. We'll just get the bids from an independent contractor," he said.

The other item pertained to equipment and capital costs. "In our business there is a huge amount of equipment that is part of the operation. There's water treatment facilities, there's pumps, there's motors. The concern was that if a company like ours was to walk, or to go bankrupt, that possibly the banks or someone would foreclose on the equipment and would take it off site and it wouldn't be available to do the reclamation," Pelizza said.

Mining at HRI's Church Rock and Crownpoint, N.M., locations isn't scheduled to come online for a number of years yet. "We're not under a tremendous time pressure," Pelizza said. "All of this is fitting into our plan for the schedule of these operations. The price of uranium now is just improving to the point that the projects are becoming economic. So over the course of, I would say the next two to four months, we'll get the contractors' bids in line and we'll submit this information."

There are other permits that are required, one being an aquifer exemption. Pelizza said the need to obtain that permit is "a matter of opinion. Our opinion is that we have one." Also, he said, there is a jurisdictional issue which must be resolved regarding an underground injection control permit. "We've got to work with EPA to acquire that one, but those are all standard authorizations that are required for this type of activity."

Pelizza also takes issue with claims from ISL opponents that money included in the energy bill will be funneled to HRI's parent company, Uranium Resources Inc., in Texas, thus freeing up existing funds for use by HRI to conduct ISL mining in New Mexico.

"That's just untrue. If you go read the plain language in the energy bill, it's prohibited to be used for any operation in New Mexico. ... There has been a lot of noise over this issue now for the better part of two years and I, quite frankly, think it's a red herring to get everybody agitated. To me the plain language of the bill says that no sites in New Mexico would qualify."

Even so, presuming that were true, he said, "The math just doesn't square with what our opponents are claiming that we may do with offset funds."

Weekend
March 6 , 2004
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