Uranium Reserves Estimates

The Energy Information Administration (EIA) has reported the estimates for U.S. uranium ore reserves annually for the period 1984-2003. The estimates for U.S. ore reserves will not be provided for 2004. The estimates for yearend 2003 are shown below. Until further notice, the estimates of U.S. uranium ore reserves will not be updated annually pending completion of a review of the EIAs uranium resource assessment effort.

Estimation Procedures, 1984-2003

The U.S. uranium ore reserves reported annually by the EIA for specific maximum forward-cost (MFC) categories represent the sums of quantities estimated to occur in known deposits on properties where data about the ore grade, configuration, and depth indicate that the quantities estimated could be recovered at or less than the stated costs given current mining and milling technology and regulations. The reserves estimates for December 31, 2003, are based on historical data for uranium properties evaluated under prior Federal uranium resource assessment programs and data reported for 1984-2003 by mining companies for domestic uranium properties, together covering about 800 individual properties. Data for current mining costs are not available for most of the uranium reserves properties included in the yearend 2003 National estimate, and the reserves quantities reported for the stated MFC categories should be viewed as the upper limits of quantities recoverable under the most favorable conditions. The uranium property reserves estimates were based on bore hole radiometric data validated by chemical analysis of samples from cores and drill cuttings. The thickness of mineralized rock, mineral grades and their spatial distribution, host-rock depth, proposed mining method, ore haulage distance, and reclamation method were considered in the reserves evaluation. Ore cut-off grades reflect operating costs only, and the estimates include only ore with an average grade expected to allow recovery of the forward costs.

Only forward operating and capital costs were used to estimate reserves. Past capital costs were considered "sunk" costs and mining of the individual deposits may or may not return such costs. Sunk costs for such items as exploration and land acquisition were excluded as were the costs for income taxes, profit, and the cost of money. Forward costs include the costs for power and fuel, labor, materials, royalties, insurance, severance and ad valorem taxes, and applicable administrative costs. The forward costs used to estimate U.S. uranium ore reserves are categorically independent of the price at which uranium produced from the estimated reserves might be sold in the commercial market.

The estimates do not reflect a predetermined profit margin above the basic costs, since the rate of return can differ considerably among individual mining companies. Therefore, the National estimates could include some reserves across the MFC categories that might not be exploitable if the profit margin ceases to be attractive to the operator. Reserves quantities reported by the EIA have been adjusted to reflect effects of mining dilution and milling and processing recovery factors. The 2003 estimates and historical estimates of the annual U.S. uranium reserves since 1993 are shown. The 2003 reserves estimates for the $30- and the $50-per-pound U3O8 categories are summarized for major uranium-industry States.

2003 Tables

U.S.Uranium Reserves by Forward-Cost

Forward-Cost Uranium Reserves by Mining Method

Forward-Cost Uranium Reserves by State

2003 Map

Major U.S. Uranium Reserve Area