Study reports uranium economic benefits

Uranium mining in Pittsylvania County could bring jobs and revenue to economically struggling Southside, according to a state-commissioned study released Wednesday.

The potential net economic impact depends on the level of impact to the environment, and subsequently to the community and other industry. The state’s Coal and Energy Commission charged Richmond-based Chmura Economics & Analytics to complete the analysis that was funded with $200,000 from the Virginia Tobacco Commission.

Lawmakers are expected to use the analysis in considering whether to lift the state’s 29-year moratorium on uranium mining,

In what the 179-page report judges as the likely scenario — where there would be a moderate environmental impact within federally set limits with modest risks to the region’s image, public health and environment — the region could see more than 1,000 jobs and a net annual economic benefit of $135 million, based on the $60-per-pound price of yellowcake (uranium mill product).

That could mean a net $5 billion economic impact to Virginia firms over 35 years of operations proposed by Virginia Uranium Inc. at Coles Hill. Potential socioeconomic costs are subtracted from the net benefits.

Most of the construction jobs and about half of the operational jobs are likely to be filled by regional workers, the Chmura analysis concluded. The three-year construction phase could generate roughly $3.5 million per year in state and local taxes, and operations could produce about $3.1 million per year in state and local tax revenue.

Yet, in the analysis’ worst-case scenario with severe contamination of water and the environment, the net cost to Virginia could be well above $300 million per year, not because of a “remediation price-tag” to clean up the environment, but because of possible negative stigma effects impacting agriculture and tourism, a loss of 4,500 jobs statewide, a loss in property values, state remediation spending of $1.2 million, public health costs of $1.5 million and the possibility of a local manufacturer or private school Chatham Hall leaving.

The study does not assess the likelihood of scenarios, but the report states that Chmura judged the positive economic impact scenario as more likely because of extensive federal regulations and advances in technology, among other reasons listed in the report. In the better scenario, industry, private schools and tourism are unlikely to be harmed, but there could be a slight drop in real estate values for homes within a 2-mile radius of the site.

The firm estimated Virginia would need to spend an additional $2.5 million annually to monitor the industry if it becomes an agreement state with the Nuclear Regulatory Commission to regulate the uranium mill.

Chmura found that regional residents had mixed opinions on whether uranium benefits would outweigh the risks, given that most were aware of the industry’s poor track record in protecting the environment. Most were also skeptical that state or federal regulators could safeguard the environment, the report stated.

Chmura suggested some steps could increase the public’s confidence in VUI and regulators: establishing permanent environmental quality committees or the company signing an impact-benefit agreement with Pittsylvania County.

Of those who are skeptical is Eddie Cochran, owner of Strawberry Creek Shrimp Farm in Chatham. Cochran raises freshwater prawn juveniles for other farmers to raise and sell. He markets his business and products as completely sustainable without using antibiotics, hormones or chemicals.

Cochran is playing a role in growing aquaculture in the state, but he fears the presence of uranium mining and contamination risks to fresh water would scare away freshwater prawn customers or potential producers.

“People are worried about what they eat and put in their bodies nowadays,” said Cochran, who wrote legislators that he is against lifting the moratorium.

But Hurt resident Michael Notestein, who has worked at the Dominion power plant in Altavista for 21 years, believes the risks are minimal and don’t outweigh the economic benefits for the region, particularly through jobs for the unemployed or to keep younger workers and families in the area.

Because of his experience working in a coal-fired plant, he feels confident regulations are stringent enough to protect the public.

“I’m aware of all the jobs that it’s going to create. That’s a big reason I’m behind it,” the 51-year-old said. “ … I wouldn’t be here if there weren’t jobs. I’ve got to work to live.”

To read the report, visit http://dls.virginia.gov/commissions/cec/files/chmura_study.pdf . The uranium mining subcommittee of the Coal and Energy Commission will receive a presentation of the Chmura study on Tuesday at 6 p.m. at the Pittsylvania County Educational and Cultural Center at 39 Bank St. in Chatham.

Bozick reports for the Danville Register & Bee.