State questions safety, profitability in uranium mining case - GoDanRiver.com

A judge in Wise County wants to know what Virginia considers the hazards and profit potential of uranium mining in Pittsylvania County.

Judge Chadwick Dotson has been hearing a lawsuit filed by Virginia Uranium Inc. in Wise County Circuit Court demanding that the state allow uranium mining — or compensate the company for not being allowed to.

Court documents recently filed by lawyers representing the Virginia Attorney General’s Office reveal the state’s views on both the profit potential and hazards of extracting 119 million pounds of uranium ore from the Coles Hill site about six miles outside of Chatham.

In the documents, the state’s lawyers responded to requests by Virginia Uranium. Lawyers for the state admit that the Coles Hill site contains some amount of uranium ore. “Consequently, it is denied that the uranium ore in question will yield 119 million pounds of yellowcake, but it is admitted that it may,” the document states.

However, the attorneys deny the uranium deposit could turn a profit.

“According to the Chmura report quoted in request No. 29, the break-even point of the mining operation is $33.20 a pound in the first phase of the mining operation and $51.40 a pound in the second phase; the current spot price of yellowcake is $18.65, or barely half of break-even,” the document states. In another response, the attorneys cite a source saying predicting the future demand for uranium is difficult.

The state also denies the property owners have a right to mine uranium, citing a Virginia court case where it was ruled the state could deny uses of private property without reimbursing the owners.

Additionally, the attorneys deny that uranium mines are safe for the surrounding community. They cite a report noting mining and processing has the potential to “affect surface water quality and quantity, groundwater quality and quantity, soils, air quality and biota, that the impact depends on site specific conditions among other things, and that these risks will remain for thousands of years with the long term risks being poorly defined.”

The attorneys also deny uranium mining operations have been safe in other countries citing a case in Germany that included “a $3.6 billion cleanup cost, and increased radon exposure to the surrounding populations and concerns over toxic wastes like arsenic.”

The attorneys admit aside from radiological risks, the mine would pose no greater health risks than other mines in Virginia.

In the lawsuit, Virginia Uranium hopes to convince Judge Dotson that the state government is violating property laws forbidding the taking of private property unless owners are fully compensated.

Lawyers for the Attorney General’s office were forced to respond to the questions after Dotson ruled in November that Virginia Uranium’s request was neither vague nor unduly burdensome.

A trial date for the case has not yet been set.