Daneros mine near Fry Canyon to lay off workers this month
by Steve Kadel
contributing writer
Oct 18, 2012 | 4110 views | 0 0 comments | 557 557 recommendations | email to a friend | print
Sixteen miners who are employed by Moab-based Reliance Resources Inc. will be laid off from the Daneros Mine at the end of October, a company spokesperson said Tuesday.

Daneros is an underground uranium mine in Bullseye Canyon, off state Route 95 in western San Juan County. It consists of 65 mining claims on Bureau of Land Management property.

Uranium prices have steadily declined in the 18 months since the Fukushima nuclear plant disaster in Japan. Prices have fallen from about $68 a pound before the Japan earthquake to $47 per pound as of September – the lowest in two years, according to a Forbes online report.

TD Securities analyst Greg Barnes noted that fall is usually the best buying season in the uranium market, so the current weakness is a bad sign. He predicted that uranium markets will be in the doldrums for another 12 months.

Reliance is a sub-contractor for Energy Fuels Inc., which purchased all of Denison Mines Corporation’s U.S. mining assets and operations in June.

Ron Hochstein, CEO of Denison, a Canadian uranium exploration, development and production company, said the sale was “just a business decision based on Denison’s shareholders.”

He called the sale “an important step forward for Denison,” which received 425 million common shares of Energy Fuels stock in the deal.

Curtis Moore, spokesman for Energy Fuels, declined to comment this week when asked by The Times-Independent to confirm rumors that the company plans significant layoffs at Daneros with the closure of Pandora Mine near La Sal in November.

“I just can’t comment on that right now,” said Moore, who said he did not know the number of employees at the two mine projects.

Moore said Energy Fuels acquired mines in Arizona and Colorado in addition to Utah in the June purchase, which reportedly spurred an 18 percent increase in Energy Fuels’ stock.

Energy Fuels has proposed building a uranium mill near Paradox, Colo. and also owns two other small uranium mines in San Juan County, about 39 miles southeast of Moab. Those mines are not yet in production.

Copyright 2013 The Times-Independent. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

report abuse...

Express yourself:

We're glad to give readers a forum to express their points of view on issues important to this community. That forum is the “Letters to the Editor.” Letters to the editor may be submitted directly to The Times-Independent through this link and will be published in the print edition of the newspaper. All letters must be the original work of the letter writer – form letters will not be accepted. All letters must include the actual first and last name of the letter writer, the writer’s address, city and state and telephone number. Anonymous letters will not be accepted.

Letters may not exceed 400 words in length, must be regarding issues of general interest to the community, and may not include personal attacks, offensive language, ethnic or racial slurs, or attacks on personal or religious beliefs. Letters should focus on a single issue. Letters that proselytize or focus on theological debates will not be published. During political campaigns, The Times-Independent will not publish letters supporting or opposing any local candidate. Thank you letters are generally not accepted for publication unless the letter has a public purpose. Thank you letters dealing with private matters that compliment or complain about a business or individual will not be published. Nor will letters listing the names of individuals and/or businesses that supported a cause or event. Thank you letters about good Samaritan acts will be considered at the discretion of the newspaper.