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Page Hearing dates: Wednesday, February 19, 1958---------------------------------- 1 Monday, February 24, 1958------------------------------------- 27 Tuesday, February 25, 1958------------------------------------ 141 Statement of Adams, Robert, president, Western Nuclear Corp------------------ 219 Allott, Hon. Gordon, a United States Senator from the State of Colorado--------------------------------------------------- 154 Barrett, Hon. Frank A., a United States Senator from the State of Wyoming--------------------------------------------------- 49 Berry, Hon. E. Y., a Representative in Congress from the State of South Dakota.----------------------------------------------- 249 Bokum, Richard D., II, president, Sabre-Pinon Corp-------------- 99 Brodie, G. H., vice president, and general manager, Denver-Golden Öii & Uranium Co...]...T.T.T.T.T.T.T.T.T-ITI 181 Brosseau, J. E., president, Westwater Corp------------------------ 88 Carroll, Hon. John A., a United States Senator from the State of Colorado--------------------------------------------------- 154 Case, Hon. Francis, a United States Senator from the State of South Dakota----------------------------------------------------- 258 Chord, Roy C., representing the Edgemont, S. Dak., mining district -- 278 Davidson, W. L., president, Lone Star Mining & Development Co-- 110 Elggren, Č. Allen, secretary and counsel, Federal Uranium Corp---- 76 Ferguson, Cotter, president, Gas Hills Uranium Corp-------------- 230 Foss, Hon. Joe, Governor of the State of South Dakota.------------- 275 Garard, Kenneth, Navaho tribal mining engineer------------------ 109 Hughes, Vern, president, Shoni Uranium Corp---------------------- 229 Jenkins, Page T., vice president, Globe Mining Co----------------- 68 Strauss, Lewis L., Chairman, Atomic Energy Commission------------ 2 Krueger, Hon. Otto, a Representative in Congress from the State of North Dakota----------------------------------------------- 262 Look, Don, executive vice president, Thor-Westcliffe Development 90 Orp------------------------------------------------------McMeen, Gordon E., president, Lutah Uranium & Oil Co-----...----- 124 Mecia, J. A., vice president, Lucky McCranium Corp. and Utah Construction Co------------------------------------------------ 64 Montoya, Hon. Joseph M., a Representative in Congress from the State of New Mexico.----------------------------------------- 82 Mundt, Hon. Rarl E., a United States Senator from the State of South Pakota----------------------------------------------------- 262 Nason, J. H., vice president and general manager, Cog Minerals Corp. 209 O’Callaghan, Jerry C., legislative assistant to Hon. Joseph C. O'Mahoney------------------------------------------------- 216 Orr, William W., executive vice president, Uranium Ore Producers Association------------------------------------------------- 141 Palmer, Robert S., executive vice president, Colorado Mining Association-------------------------------------------------------- 156 Peck, Roy, copublisher, Riverton (Wyo) Ranger------------------ 56 Reinhardt, E. V., consulting engineer-------------------------- 118, 215 Romney, Miles P., manager, Utah Mining Association------------- 187 Salazar, Victor, president, Quinta Corp--------------------------- 105 Senutovitch, Andre, representing the Reserve Oil & Minerals Corp--- 120 Simpson, Hon. Milward, Governor of the State of Wyoming-------- 41 Johnson, Jesse C., Director, Division of Raw Materials, Atomic Energy Commission-------------------------------------------------Thomson, Hon. E. Keith, a Representative in Congress from the State of Wyoming------------------------------------------ 48, 241

Statement of -Continued Page

Vance, Harold S., Commissioner, Atomic Energy Commission------- 1

Woo. Hon. Arthur W., a United States Senator from the State of
tah------------------------------------------------------- 195

Weller, Gordon A., executive vice president, Uranium Institute of

America.---------------------------------------------------- 27

Wentworth, Jack, director, New Mexico Economic Development

Commission------------------------------------------------- 85

Wilson, Clark L., vice president and general manager, Northwest

Uranium Mines, Inc.----------------------------------------- 205

Wilson, Parker.president, Cotter 99p :-------------------------- 160
Young, Hon. Milton R., a United States Senator from the State of
North Dakota.----------------------------------------------- 273

Statements submitted for the record: -

Black Jack Coop - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 135

Bowen, Max W., Golden Cycle Corp----------------------------- 184
Burdick, Hon. Usher L., a Representative in Congress from the State
of North Dakota.-------------------------------------------- 281

Green Mountain Uranium Corp--------------------------------- 138

Langer, Hon. William, a United States Senator from the State of

North Dakota.----------------------------------------------- 273

O’Mahoney, Hon. Joseph C., a United States Senator from the State of

Wyoming--------------------------------------------------- 216

Spurrier, Richard R., on behalf of the Santa Fe Oil Co------------- 134

Additional information furnished for the record:

Contract No. AT (05–1)–735, between Cotter Corp. and AEC------ 169

Correspondence from-

Dahl Uranium Mine, Inc.----------------------------------- 204

Ferry County Prospectors & Miners Association--------------- 284

Goldstein, Eliot H----------------------------------------- 184

McClaine, A. F------------------------------------------- 282

Minor, Mee & Co.----------------------------------------- 139

Northwest Uranium Mines, Inc ----------------------------- 201

Rio de Oro Uranium Mines, Inc ----------------- ------------ 138

Spokane National Mines, Inc.------------------------------- 283

ells, John A.--------------------------------------------- 247

West Coast Mineral Association----------------------------- 284

Western Nuclear Corp------------------------------------- 224

Wyoming Uranium Corp----------------------------------- 136

Cotter Corp. activities toward construction of a uranium mill------- 161
Domestic Uranium Circular 5, Revised.--------------------------- 38
Resolution of the New Mexico Economic Development Commission,
adopted January 9, 1958------------------------------------- 86

Resolutions of Western Mining Conference and the Colorado Mining

Association------------------------------------------------- 158

Survey of Marketing Problems in the Uranium Industry Today,

prepared by Uranium Ore Producers Association----------------- 146

Appendix 9.-A report on the domestic mining and milling problems

resulting from limitation on additional milling capacity by the Divi-

sion of Raw Materials, Atomic Energy Commission-------------- 308

Appendix 10.-Joint Committee press release of April 2, 1958, relative
to AEC report in uranium mining and milling problems---------- 3.18

PROBLEMS OF THE URANIUM MINING AND MILLING INDUSTRY

WEDNESDAY, FEBRUARY 19, 1958

CoNGRESS OF THE UNITED STATEs, Joint CoMMITTEE ON ATOMIC ENERGY, . Washington, D.C.

_Present: Representatives Durham (chairman of the committee), Holifield, Price, Dempsey, Van Zandt, and Hosmer; Senators Anderson, Pastore, Hickenlooper, Bricker, and Dworshak.

Also present: James T. famey, executive director; David R. Toll, staff counsel; and George E. Brown, Jr., and Richard Smith, staff members, Joint Committee on Atomic Energy.

Chairman DURHAM. As part of our hearings under section 202 of the Atomic Energy Act held each year on “development, growth, and state of the atomic energy industry,” the Joint Committee is much concerned this year with the problems of the domestic uranium mining and milling industry. Our first witness this afternoon who will testify concerning this subject is Commissioner Vance. Chairman Strauss, the other Commissioners, and Mr. Jesse Johnson, Director of the AEC Division of Raw Materials, are also present to answer questions from committee members.

You may proceed, Commissioner Vance.

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STATEMENTS OF LEWISL, STRAUSS, CHAIRMAN, HAROLD S. VANCE, COMMISSIONER, AND JESSE C. JOHNSON, DIRECTOR, DIVISION OF RAW MATERIALS, ATOMIC ENERGY COMMISSION

Mr. WANCE. Mr. Chairman, the first subject assigned to me for presentation today is the raw materials base for the atomic industry. Our uranium supply situation has remained strong during the past year. Domestic ore production increased to 3.6 million tons. In terms of U308 concentrate, our domestic production is now at the rate of 10,000 tons annually and is scheduled to increase to more than 15,000 tons annually by a year from now. Before the end of 1959, this rate may reach 17,000 to 18,000 tons. Our reserve position has continued to improve, with total domestic reserves now estimated at 75 million tons of ore as against 60 million tons last year. This ore reserve is equivalent to approximately 200,000 tons of U308 and, thus, represents about a 10-year supply at the estimated 1960 domestic production rate. Although domestic ore and mill production increased during the year, foreign sources continued to furnish a substantial portion of our total concentrate purchases. It is expected that these foreign supplies will diminish after the next few years, as many contracts ex

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