Cost Analysis of Uranium Mining in New Mexico Shows No Economic Boon
October 28, 2008
In a response to the industry's exaggerated claims that renewed uranium mining would be a multi-billion dollar economic bonanza for New Mexico and the Grants area, the New Mexico Environmental Law Center commissioned Dr. Thomas M. Power to evaluate the true economic impacts of uranium mining in New Mexico. The result is the only independently reviewed analysis of the subject in New Mexico entitled "An Economic Evaluation of a Renewed Uranium Mining Boom in New Mexico"
Executive Summary
As a result of a substantial increase in uranium prices between 2004 and 2008, uranium mining companies have shown increasing interest in New Mexico's uranium reserves. After reaching peak levels of production in 1980, New Mexico uranium production plunged dramatically, reaching near-zero levels by 1990. This uranium boom and bust cycle had disruptive impacts in the area between Gallup and Laguna - the Grants mineral belt - where most of New Mexico's uranium mining and processing historically took place. Now uranium mining companies and other business interests are promoting renewed uranium mining as a potential source of $30 billion and almost 250,000 jobs for New Mexico and the Grants area. This report carefully explores this "economic bonanza" view of renewed uranium mining by first evaluating the calculation that generates the $30 billion and 250,000 jobs figures. Then, to get some perspective on what a renewed uranium mining industry might entail, it looks back at New Mexico's economic experience with uranium mining over the last half-century. In order to understand whether New Mexico and the Grants area really need the economic stimulus that renewed uranium mining would allegedly provide, the report reviews the adjustments that have taken place since the uranium mining bust of the 1980s. With that as background, this report then estimates the upper end of the potential impact of a new uranium mining boom on employment, payroll, and state and local government revenues. The report ends with a discussion of the implications uranium mining has for the new "amenity-supported" economy that has been developing in New Mexico for several decades.
In a response to the industry's exaggerated claims that renewed uranium mining would be a multi-billion dollar economic bonanza for New Mexico and the Grants area, the New Mexico Environmental Law Center commissioned Dr. Thomas M. Power to evaluate the true economic impacts of uranium mining in New Mexico. The result is the only independently reviewed analysis of the subject in New Mexico entitled "An Economic Evaluation of a Renewed Uranium Mining Boom in New Mexico"
Executive Summary
As a result of a substantial increase in uranium prices between 2004 and 2008, uranium mining companies have shown increasing interest in New Mexico's uranium reserves. After reaching peak levels of production in 1980, New Mexico uranium production plunged dramatically, reaching near-zero levels by 1990. This uranium boom and bust cycle had disruptive impacts in the area between Gallup and Laguna - the Grants mineral belt - where most of New Mexico's uranium mining and processing historically took place. Now uranium mining companies and other business interests are promoting renewed uranium mining as a potential source of $30 billion and almost 250,000 jobs for New Mexico and the Grants area. This report carefully explores this "economic bonanza" view of renewed uranium mining by first evaluating the calculation that generates the $30 billion and 250,000 jobs figures. Then, to get some perspective on what a renewed uranium mining industry might entail, it looks back at New Mexico's economic experience with uranium mining over the last half-century. In order to understand whether New Mexico and the Grants area really need the economic stimulus that renewed uranium mining would allegedly provide, the report reviews the adjustments that have taken place since the uranium mining bust of the 1980s. With that as background, this report then estimates the upper end of the potential impact of a new uranium mining boom on employment, payroll, and state and local government revenues. The report ends with a discussion of the implications uranium mining has for the new "amenity-supported" economy that has been developing in New Mexico for several decades.
For more information and to view the full report, please visit the NMELC website: http://www.nmenvirolaw.org/