Brief by Central Staff
Mining – December 2005 – Colorado Central Magazine
The Cotter Corp., which runs a uranium mill in Cañon City, had been expanding production to meet increased demand for uranium, which is fetching higher prices these days — from $7.50 a pound in 2001 to $33.25 in late October. However, the price may not be high enough for the company to make money.
Last year, the company restarted four mines in southwestern Colorado near Nucla and Naturita. In early November, the company announced that those four mines, as well as two others in the area, will be closed and the 49 affected employees will be laid off.
The mill in Cañon City will be closed when it runs out of ore in about two months, and its employees will be laid off, too.
Cotter officials said the mines were too small to be operated efficiently, even with higher uranium prices, and that higher fuel costs increased both operating and transportation costs so much that profits were an impossibility.
The mines and mill are being mothballed, rather than undergoing a full shut-down — which would require expensive remediation and reclamation.
World production of uranium has averaged about 100 million tons a year, while demand is about 180 million tons. Stockpiles have been consumed, and thus the recent price increase.
