| StockInterview: What makes you respect
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| | the same pumps, pipes, all of that.
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| the Kazakhs with regards to ISL mining in
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| | Generally speaking, the difference is
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| their country?Fletcher Newton: First of
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| | that the deposits in Kazakhstan are much
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| all, they have a tremendous amount of
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| | bigger. They are much more uniform. As a
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| experience with this. Kazakhstan and
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| | result of that, your recoveries are a lot
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| Uzbekistan have been doing ISL mining of
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| | better.StockInterview: Reportedly, you
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| uranium longer than anybody in the world.
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| | can get 80-percent recovery in
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| The Kazakhs, in particular KazAtomProm,
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| | Kazakhstan, compared to 70-percent or
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| have over the last 30 years, maybe more,
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| | less in the United States.Fletcher
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| developed an incredible amount of
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| | Newton: You have to be careful when you
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| expertise in how to recover uranium
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| | talk about the 80-percent recovery. The
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| effectively, inexpensively. They are
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| | reason is you never know exactly how much
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| extremely environmentally sensitive.
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| | uranium is down there to begin with. When
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| Kazakhstan, to my knowledge, has had none
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| | you measure uranium with a logging truck,
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| of the environmental issues with ISL
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| | you don't actually measure the uranium
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| recovery of uranium that, for example,
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| | directly. What you measure is the
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| we've had in this country. They have gone
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| | concentration of bismuth-214, which is a
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| to great lengths to be sensitive to the
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| | daughter product of uranium. You can then
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| interests of people in local communities,
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| | extrapolate back from that to calculate
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| who are obviously always concerned about
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| | how much uranium is there. There can be
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| groundwater. But, the bottom line is they
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| | problems with something called
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| are extremely competent in their ability
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| | disequilibrium. One of the results of
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| to mine uranium. They are among the very
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| | that is your calculations can then be
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| best, if not the best.StockInterview: Why
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| | off. Your geologists will come up with
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| do you call them among the very
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| | what they think is a reasonable amount of
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| best?Fletcher Newton: I think it's a
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| | uranium there. Sometimes, you'll recover
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| couple of things. They have an extremely
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| | 80 percent of that. Sometimes you'll
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| well educated work force. These are guys
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| | recover 120 percent or 50 percent. The
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| with PhDs in hydrology, ground water
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| | great thing about the uranium in
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| chemistry and metallurgy. This is a
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| | Kazakhstan, at least in our experience is
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| legacy of the old Soviet educational
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| | that it is readily leachable. It's just
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| system. You have got a lot of very bright
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| | right there in the sand.StockInterview:
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| people. Moukhtar Dzhakishev is a PhD in
| |
| | How would you describe the environmental
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| physics, the head of KazAtomProm. Every
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| | climate toward uranium mining in
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| one of his people have advanced degrees
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| | Kazakhstan?Fletcher Newton: They have a
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| in science and engineering, finance or
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| | very favorable and understanding
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| business. They all speak two or three
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| | regulatory environment. They have a
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| languages. They are urbane. They travel.
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| | government that supports uranium mining.
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| That's the current
| |
| | At the same time, they are very sensitive
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| generation.StockInterview: What makes the
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| | to social issues, and to making sure they
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| Kazakh ISL activities among the
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| | pursue sustainable development in
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| best?Fletcher Newton: The Soviet system
| |
| | everything they do. They understand that
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| was incredibly thorough. When they went
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| | people are naturally afraid of
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| out and drilled an exploration well, they
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| | radioactivity. They understand that
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| logged the entire hole, top to bottom.
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| | people are afraid of anybody who says
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| And they've kept all that data. They
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| | 'I'm going to do something with ground
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| spent a lot of time and money in uranium
| |
| | water.' Even if it's ground water you
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| production in Central Asia. And in the
| |
| | could never drink or do something with.
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| course of doing it, they learned how to
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| | They go to a lot of efforts to educate
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| do it better than just about anyone else
| |
| | people, to explain what they are doing,
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| in the world.StockInterview: If the
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| | to protect people, and to make absolutely
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| Kazakhs are among the best, why do they
| |
| | certain that there is never a threat to
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| need Cameco?Fletcher Newton: When we went
| |
| | health and public safety. And they go a
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| over there to invest, what they needed
| |
| | very good job of this.StockInterview:
|
| was not so much our expertise, but our
| |
| | During your presentation at the Platts
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| support. They've got plenty of their own
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| | Nuclear Fuel Strategies Conference in
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| expertise. And that's an important point
| |
| | Washington, D.C. you had talked about the
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| to make. This was in the late 1990s and
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| | 'challenging' part of mining uranium in
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| the price of uranium was near an all-time
| |
| | Kazakhstan.Fletcher Newton: No. When I
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| low. The country of Kazakhstan was just
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| | said 'challenging,' I didn't mean that in
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| broken off from the Soviet Union. Was it
| |
| | a pejorative sense. We have the same
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| going to be independent? It wasn't clear
| |
| | challenges in the United States:
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| yet, and there was absolutely no interest
| |
| | regulatory, infrastructure, human
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| in uranium mining. And so, we were able
| |
| | resources. I think you would have them in
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| to meet that need, as was Cogema, at a
| |
| | any country. Remember this industry has
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| time when they needed to attract foreign
| |
| | been on its back for twenty-five years.
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| investment. It was very much a question
| |
| | Suddenly, in the space of four years, the
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| of fortuitous timing.StockInterview: So
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| | price has gone from $7 to $54. Well, that
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| Kazakhstan needed the money then, but now
| |
| | makes it a challenge for everybody. Not
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| they don't?Fletcher Newton: I do not
| |
| | just Kazakhstan.StockInterview: How do
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| think they need the money now. That's
| |
| | you compare doing business in Kazakhstan
|
| true. They certainly needed it then. We
| |
| | with your operations in the United
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| brought maybe different ideas about how
| |
| | States?Fletcher Newton: My experience is
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| to mine uranium. Not better, but just
| |
| | limited to just the uranium business. We
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| different. One of the things I admire
| |
| | are exceptionally pleased with our
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| about the Kazakhs so much is they are
| |
| | partner, with the relations we have with
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| willing to learn, willing to look at a
| |
| | our partner KazAtomProm and with our
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| different system and say, 'Hmmm, ok let's
| |
| | experience there. They are an excellent
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| try that.' Whereas in the United States,
| |
| | partner. They are extremely technically
|
| for example, I can tell you that getting
| |
| | capable and sophisticated. We learned a
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| people to change is very difficult.
| |
| | tremendous amount from them. They've
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| Again, this is one of the reasons why
| |
| | taught us a lot, and it's been a very
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| Kazakhstan has been so impressive. They
| |
| | good relationship. We do not have the
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| are willing to embrace change. Moukhtar
| |
| | horror stories you've heard from other
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| is a guy who is more than willing to say,
| |
| | people. We have not experienced that at
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| 'Hey, if you show me that something like
| |
| | all.COPYRIGHT (C) 2006 by
|
| this can be better, you bet, we'll try
| |
| | StockInterview.comJames Finch contributes
|
| it.'StockInterview: Why is ISL mining
| |
| | to and other publications. Visit to find
|
| different in Kazakhstan aside from the
| |
| | about "Investing in the Great Uranium
|
| use of sulphuric acid?Fletcher Newton:
| |
| | Bull Market: A Practical Investor's Guide
|
| You generally use all the same equipment:
| |
| | to Uranium Stocks.
|
