Our Plans and Prospects
Here in Virginia, at Coles Hill, we can make a difference.
The United States faces a critical shortage of uranium—the fuel used to operate its nuclear-powered military fleets as well as the 104 nuclear reactors that provide energy for America. According to the U.S. Department of Energy, more than 90 percent of America’s uranium is imported from foreign sources. Nearly one-half of our uranium is imported from unstable countries like Russia, Namibia, Niger, and Uzbekistan.
It’s a matter of common sense to put the natural resources at Coles Hill to work—as a powerful economic engine for the region and for the national security of America. After all, Coles Hill holds the largest untapped uranium deposit in the U.S., containing an estimated 119 million pounds of uranium. That’s enough uranium to fuel every nuclear reactor in the country for two years. Statewide, the uranium at Coles Hill could fuel Virginia’s reactors at North Anna and Surry, which produce nearly 40 percent of Virginia’s power, for 75 years.
In this part of the web site, you’ll find information about Virginia Uranium and our plans to develop the natural resources at Coles Hill. You’ll also find information on Virginia’s studies on uranium mining and the role Virginia’s citizens may play in the Commonwealth’s consideration of uranium mining, along with descriptions of how much water we’ll use and how we’ll protect water quality.
If you’re looking for general information about the protection of health and safety at uranium-mining operations, uranium processing, the regulation of uranium in the U.S., and the global uranium market, please visit our Information Center
- The Moratorium On Mining: Where We Are Now
- Coles Hill During Mining And Milling
- Water Usage and Protecting Water Quality
- Job Creation and Economic Impact
- Virginia's Studies on Uranium Mining, 1980s-Present
- The Role of the Public
The Moratorium On Mining: Where We Are Now
Currently in Virginia, only the exploration of uranium deposits is allowed by state law. No uranium mining can occur until the Commonwealth of Virginia creates a regulatory framework, lifts the existing moratorium, and grants a company such as Virginia Uranium a permit. We anticipate that the regulatory and permitting process will take several years and will provide many opportunities for public input. For a full explanation of how the moratorium came about, click here.
More recently, on November 27, 2007, the Virginia Department of Mines, Minerals and Energy (DMME) issued a permit to Virginia Uranium to allow the commencement of exploratory drilling of up to 40 holes at Coles Hill in Pittsylvania County. This exploration enabled the company to further assess the size, grade, and depths of the existing uranium deposits. Under state and federal regulations, exploratory drilling is required to meet water quality protection standards and develop full reclamation plans for any disturbed areas. This permit allows research but does not allow any kind of mining.
On-site studies and testing have provided Virginia Uranium with extensive new data about the Coles Hill deposit. In addition, visits to major North American uranium mining operations have enabled Virginia Uranium’s management team to observe the industry’s best practices for incorporation into VUI’s operations.
In 2009, the Virginia Coal & Energy Commission—a Commission of the Virginia General Assembly—chartered two major studies to inform the legislature’s deliberation about lifting the decades-old moratorium on uranium mining. You may read more about the studies from the National Academy of Sciences and Chmura Economics & Analytics here.
With the benefit of these officially-sanctioned studies, the Virginia General Assembly may consider legislation to direct the Department of Mines, Minerals, and Energy (DMME) to promulgate regulations overseeing the practice of uranium mining.
If such regulations are issued, Virginia Uranium Inc. will apply to DMME for a permit to mine the Coles Hill deposit. Additionally, the company will require local zoning and special use permits from Pittsylvania County.
VUI must also obtain permits from the Nuclear Regulatory Commission (NRC)—the federal agency that oversees uranium milling operations. Approvals will likely be required from other federal agencies such as the Environmental Protection Agency (EPA) and Army Corps of Engineers (ACE). You may read more about which regulatory bodies would oversee an operation at Coles Hill here.
The entire process, including the extensive environmental studies for permitting, may take anywhere from four to six years, and it will include numerous opportunities for public input.
Coles Hill During Mining And Milling
Virginia Uranium’s mining and milling plans are not yet finalized. The Commonwealth of Virginia must create a regulatory framework for uranium mining before Virginia Uranium has the tools needed to propose the full scope of its operations. Moreover, additional studies must be conducted before Virginia Uranium will have all the data necessary to submit an application for a permit to the Nuclear Regulatory Commission and other state and federal agencies. The information below reflects the current state of Virginia Uranium’s plans, but please be cautioned that these plans are subject to further revision.
Virginia Uranium’s operation at Coles Hill will entail three main activities: underground mining, milling, and tailings disposal. After building a largely underground mine, Virginia Uranium will excavate the hard rock bearing uranium and process the rock to remove the uranium in its on-site mill. Virginia Uranium will also dispose of the tailings at Coles Hill. None of the other aspects of the nuclear fuel cycle, such as conversion, enrichment, and the operation of a nuclear reactor, will take place at Coles Hill.
All Virginia Uranium will produce is yellowcake, the form of natural uranium sold as a commodity.
There are multiple reasons why Virginia Uranium plans a largely underground mine as opposed to an open-pit or in situ leaching operation. Underground mining is more economically viable than open-pit mining at Coles Hill. In situ mining is not at all viable for hard rock types, because it requires pumping large amounts of liquid through the rock—liquid which dense, hard rock like the mylonite of Coles Hill cannot absorb. Moreover, underground mining results in a much smaller surface impact and far less waste than open pit mining.
Though Virginia Uranium intends to build an underground mine, certain parts of a mining and milling operation will still be visible at Coles Hill. Head frames and declines used to remove ore from the ground, ventilation shafts, and all other support buildings will be in the vicinity of the mine. The mill and water treatment facilities will also be in the area. The milling facility will resemble a modern factory or warehouse. It will have little surface impact and must meet NRC guidelines while in operation. It will be decommissioned, dismantled, and buried once milling activities have ceased. Much of the tailings will be mixed with a cement-like substance and put back into the mine shafts and drifts, and the rest will be stored in heavily-monitored and regulated below-grade storage facilities. Click here to read about the NRC’s requirements for tailings facilities.
According to the regulations of the Nuclear Regulatory Commission, before starting any operations, Virginia Uranium will have to set aside surety bonds to fund reclamation. You may read about reclamation and financial assurances here.
Once the underground mine is closed, then the surface can be used for activities such as raising hay and grazing cattle—the same activities currently taking place at Coles Hill. Virginia Uranium proposes to place all available lands not required to be transferred to the ownership of Department of Energy (DOE) into perpetual conservation easements. Most of the 3,500 acres currently controlled by the company will ultimately be placed into such easements.
Once the NRC has approved the reclamation, ownership of the tailings disposal cells will then be transferred to the DOE for long-term care and maintenance.
Sites Instructive for Virginia Uranium:
Uranium has been mined in various parts of the world, and some former mining sites bear a resemblance to Coles Hill. If Virginia Uranium develops the deposit, the technologically-advanced best practices of the industry will inform the operation. Trips to active mining operations in Texas and Saskatchewan, Canada, as well as decommissioned mines in Bessines, France, and Elliot Lake, Canada, have already helped the management team to start planning to build the safest mining operation in the world.
Throughout the 1980s and 1990s, uranium was extensively produced as a byproduct of phosphate mining in Louisiana and Florida – both states with higher levels of rainfall, larger bodies of water, and higher propensities for severe weather events such as hurricanes and flooding than Virginia. From 1981-1992 uranium production in Louisiana and Florida averagedtwo million pounds of uranium each year, the approximate level of production expected at Coles Hill.
The former mining locations most resembling Pittsylvania County are in France. In Bessines, for example, uranium was safely mined from the late 1940s through the late 1990s. Bessines has strikingly similar rainfall and humidity levels to Pittsylvania County, boasts significant beef and dairy cattle production, and accommodates a much higher population density than Pittsylvania County.
For example, uranium was mined with the open-pit method in France at Puy de L’Ages from 1977 until 1993. The former open-pit is now a trout fishing pond, which you may see in the pictures below.
1) Puy de L’Ages During Mining in 1977
2) Puy de L’Ages after Reclamation
3) Puy de L’Ages, Now a Trout-Fishing Lake, in 2009
Animation showing how our mine and mill will look.
Water Usage and Protecting Water Quality
The mining and milling operations at the Coles Hill project will use roughly 300,000 gallons of water daily—slightly less than the nearby Town of Chatham, which has about 1,200 residents. That is far less than the 8.2 million gallons per day Dan River Mills used while in operation in Danville, Virginia.
Rain water and water collected from the site will feed the mill’s water system, and all water will come from the 3,500-acre site. The company will recycle as much water as possible in order to minimize disturbance of the land and reduce costs by conserving the use of chemicals required for the milling process. Once the proper levels of water are reached, excess water can be treated in the wastewater-treatment plant and safely released back into the ground.
A modern water treatment system comparable to municipal systems will be constructed on the site. Current designs show that the plant will be capable of handling 158 million gallons a year. (Our projected annual water usage is 110 million gallons.) Using modern techniques, this plant will remove contaminants, treating all wastewater (as well as all run-off water) and bringing it up to EPA standards before it is recycled or released at the site. The company, independent laboratories and government agencies will conduct water testing. In addition, most companies, including Virginia Uranium, invite environmental groups to conduct their own testing at the company’s expense.
The only well which would be affected in the Coles Hill area is that of Walter Coles, Sr., the chairman of Virginia Uranium, who lives on the Coles Hill site. No public drinking water supplies or private wells will be vulnerable to contamination from the Coles Hill project. The engineered barriers of the tailings impoundments and the distances to off-site wells and water systems will provide in-depth defense against excursions of contaminants from the site.
Private wells and public water supplies in the area will be tested to establish existing baseline levels of water quality before any mine or mill development. Controls of contaminants and monitoring of Points of Compliance around the project area will provide multiple safeguards against release of contaminants from the site, with ample time to implement corrective actions if contaminant levels should rise above Maximum Concentration Limits set by regulatory agencies. Under federal regulations, VUI will be responsible for any remediation or replacement of contaminated wells.
To read more about common health and safety concerns members of the public express about uranium mining, click here.
Job Creation and Economic Impact
A full-scale mining and milling operation at Coles Hill will create several hundred jobs and billions in revenue over the 35-year life span of the mine. Construction of the mine and mill will create 250-350 temporary jobs. During the 35-year operation of the mine and mill, the project will require 300-350 permanent workers. The average annual salary will be around $65,000. To see of list of some of the positions which would be created, and salary ranges, click here.
In addition to the 325 permanent jobs and 300 temporary construction jobs that will be created at Coles Hill, the development would generate hundreds of additional indirect jobs in various local businesses. Uranium-mining operations support asphalt, machine parts, industrial equipment, cement, and construction businesses, not to mention spin-offs generated by workers earning and spending more on restaurants and shops in the community.
VUI plans to keep hiring locally. To date, all of VUI’s employees have had firm roots in Southside Virginia. According to an expert engineering study Virginia Uranium commissioned on the economic viability of the project, 90 percent of the workers could come from Southside Virginia. The study by Lyntek Consultants showed that many of the available jobs will require basic skill sets familiar to a workforce accustomed to agriculture and factory work. You may see a list of the kinds of jobs that will be available here.
The company envisions on-site training programs for some jobs and expects to rely upon the extensive network of work-training facilities in the Southside region—including the community college systems as well as the more technical training facilities like Danville Community College’s Regional Center for Advanced Technology and Training (RCATT). Off-site, on-the-job training of locally-recruited employees will take place at other mines and mills and will be a key component of the company’s training program. Most of the training will begin prior to mining and milling.
VUI’s total capital investment in the community over the life of the project will be between $350-400 million, with about $173 million of that investment coming in the first two years. In comparison, the total estimated investment that Ikea anticipates to make in the Danville area for its Swedwood manufacturing plant is $281 million.
According to the Lyntek report, the total annual economic impact of the Coles Hill project – direct and indirect – will be $240 to $300 million. The direct annual economic impact – the cost of services, supplies and wages/salaries – will be roughly $40 to $50 million. The indirect annual economic impact will reach an estimated $200 to $250 million. The indirect economic impact will consist of salaries for workers hired in local supporting industries (i.e. asphalt, concrete, construction, machine parts suppliers, industrial equipment suppliers, etc.), expenditures by employees in the local economy (i.e. groceries, banks, restaurants, housing and other amenities) and capital investments made my supporting industries to facilitate the project. This impact will be spread across the entire local economy and is equivalent to five times the annual gross revenue ($62 million) produced by all 1,364 farms in Pittsylvania County.
Boom-and-bust cycles are frequently associated with mining operations, but they are not easily applicable to Virginia Uranium’s situation. The stereotypical boom-and-bust cycles out west came about because communities depended entirely on mining for their economic sustenance. We have a diversified economy in Southside Virginia, an economy that has endured for over 200 years and has weathered the losses of major industries such as tobacco, textiles and furniture manufacturing. Furthermore, many of the aforementioned industries which left Southside did so abruptly. They were here one year and gone the next. Since the Coles Hill project has a defined lifetime, the company will work closely to ensure a smooth transition once the estimated 35-year mine life ceases, just as the company will plan for the environmental aspects of mine closure.
The Virginia Coal and Energy Commission is currently overseeing an independent study of the potential socioeconomic impacts of uranium mining and milling in Virginia. The study, conducted by Chmura Economics and Analytics LLC, is exploring potential impacts on the local agricultural industry, private school enrollment and general economic development opportunities in Southside Virginia. You may read more about the study here.
Virginia's Studies on Uranium Mining, 1980s-Present
The Commonwealth of Virginia has studied the potential effects of uranium mining in Virginia for decades. The Commonwealth considered the issue extensively in the 1980s, and the National Academy of sciences and Chmura Economics and Analytics have more recently undertaken state-sponsored studies.
Virginia on Uranium Mining in the 1980s:
In 1981, the Virginia General Assembly directed the Virginia Coal & Energy Commission (CEC) to conduct a study to assess the potential feasibility and impacts of uranium mining and milling in Virginia. To oversee the study and explore the issue, the CEC established a Uranium Subcommittee.
Over the course of 1981-82, the Uranium Subcommittee held a series of public hearings to explore various aspects of the uranium mining and milling industry. The Subcommittee took a fact-finding trip to Texas to review operating uranium mines and mills and to meet with Texas state legislators regarding the issue. The Subcommittee also met with representatives of regulatory agencies overseeing uranium mines in New Mexico, Colorado and Wyoming. However, the Subcommittee did not conduct any site-specific studies of the potential for uranium mining and milling in Virginia.
In 1983, the General Assembly established a legislative committee known as the Uranium Administrative Group (UAG) to oversee a study to examine the costs and benefits of uranium development at specific sites in Pittsylvania County. To help administer and assess the findings of the site-specific study, the Coal & Energy Commission formed the Uranium Task Force (UTF) under the auspices of the UAG and Uranium Subcommittee in 1984. The UTF was charged with the responsibility to assess the risks and economic costs and benefits of uranium development in Pittsylvania County and to make recommendations to the General Assembly on the acceptability of those risks and performance standards necessary to limit the risks to an acceptable level.
Shortly after its formation, the UTF retained SENES Consulting Limited to conduct a 12-month assessment of the potential radiological risks associated with uranium development in Pittsylvania County. You may read about precautions taken to limit radiation exposure at uranium mines here.
SENES found that workers at a potential mine at Coles Hill would be exposed to less than 17 millirem of radiation each year. Population in the immediate area would be exposed to less than 7 millirem. Population living within 50 miles would receive less than 0.04 millirem per year. These exposures are a small fraction of the 320 millirem the average person living in the U.S. receives as background radiation each year, and an even smaller fraction of the average exposure for population living in higher elevations, like Colorado, who receive 400-500 millirem each year. Populations living in some coastal areas of Brazil receive an annual natural background dosage of 900 millirem.
According to the 1984 SENES risk assessment, an annual radiation dose of 10 millirem carries a one-in-a-million risk of health detriment. Compare this to the following activities that carry a risk of death of one-in-a-million: travelling 50 miles by car, living two months in an average stone or brick house, being struck by lightning during a two-year period, dying from air pollution during a two-day period, smoking one-two cigarettes, or living 20 minutes at the age of 60.
Ultimately, the risk assessment concluded “that uranium development [in Pittsylvania County] can be undertaken with minimal risks.” Based on the SENES findings, the UAG concluded in its final report to the CEC “that uranium development activity can be undertaken with an acceptable level of risk and with economic benefits to the state…” and recommended by a 15-2 vote that the General Assembly lift the moratorium on uranium mining in Virginia and begin promulgating the necessary regulatory and permitting structure to enable development to proceed.
In early 1985, the CEC submitted its own report to the General Assembly based on the conclusions and recommendations of the UAG. The CEC report concluded that “the moratorium on uranium development can be lifted if essential specific recommendations derived from the work of the [UTF] are enacted into law.” The report proposed draft legislation to lift the moratorium and establish necessary regulations for the industry.
Of course, legislation was never adopted, and the uranium deposit at Coles Hill has not been mined. Marline, Virginia Uranium’s predecessor company that raised the issue in the 1980s, lost interest in mining the deposit when the price of uranium dropped significantly over the course of the 1980s. High-grade ore bodies in Saskatchewan, Canada, were being developed more cheaply than deposits had ever been developed, driving down the price of uranium. The incident at Chernobyl also spawned global fears about nuclear energy, driving down demand for uranium.
Current Studies:
The Coal and Energy Commission is now studying uranium mining again, and the CEC has commissioned the National Academy of Sciences to “examine the scientific, technical, environmental, human health and safety, and regulatory aspects of uranium mining, milling, and processing as they relate to the Commonwealth of Virginia for the purpose of assisting the Commonwealth to determine whether uranium mining, milling, and processing can be undertaken in a manner that safeguards the environment, natural and historic resources, agricultural lands, and the health and well-being of its citizens. By addressing these questions, the study will provide independent, expert advice that can be used to inform decisions about the future of uranium mining in the Commonwealth of Virginia; however, the study will not make recommendations about whether or not uranium mining should be permitted nor will the study include site-specific assessments.”
The Virginia Coal and Energy Commission, the official sponsor of the NAS study, selected the Virginia Center for Coal and Energy Research at Virginia Tech to administer the study. In 2009, the Coal and Energy Commission asked Virginia Uranium and several environmental groups to contribute to the funding of the study. The environmental groups, including the Piedmont Environmental Council and the Southern Environmental Law Center, declined. The Virginia legislature did not fund the study because it was launched at a time of great economic uncertainty, a time of budget shortfalls and drastic funding cuts for core services like education, healthcare, and transportation. It did not seen appropriate to ask the taxpayers to bear the cost of a comprehensive independent study when private funding sources were available. Subsequently, Virginia Uranium provided the $1.4 million in funding necessary to conduct the study. In accordance with NAS policy requiring the use of an independent third-party to administer funding from a private party, Virginia Tech is administering all funding to the NAS.
A second state-commissioned study is by Chmura Economics and Analytics, unanimously selected by the present Uranium Mining Subcommittee. Its objective is “to address site- and region-specific social, economic and environmental impacts and sustainability factors such as quality of life, infrastructure, local economic opportunities and property and real estate values.”
Among other issues, the study explores the potential local and regional impact of uranium mining on social infrastructure, commercial activity, perceptions of the region, marketability of the region, fear of potential public health and environmental effects, job creation, infrastructure development, income levels, tax revenues, overall economic development and supporting industries, property and real estate values, long-term economic sustainability and the potential environmental impact on various social and economic factors. The final scope of study was amended through public hearings.
The Virginia Tobacco Commission approved a $200,000 grant to fund the study in April 2010.
You may read about the opportunities for public participation in the study process below.
The Role of the Public
As with any uranium mining project being considered in the U.S., there have been and will be multiple opportunities for public input in the study and permitting process. The Coal and Energy Commission (CEC) Uranium Mining Subcommittee has held a number of public meetings. The National Academy of Sciences and Chmura have both opened forums for public comment. In addition, if the moratorium is lifted and Virginia Uranium applies for milling and tailings disposal permits from the Nuclear Regulatory Commission, there will be many public hearings.
Since its formation in November 2008, the CEC Uranium Mining Subcommittee has held six public meetings – four in Richmond and two in Chatham – to plan and coordinate the NAS and socioeconomic studies. The Subcommittee opened five of the six meetings to public comment.
The Subcommittee permitted written public comment periods of a minimum of 30 days for the scope of the socioeconomic and NAS studies and for consideration of the proposals submitted by six independent firms to conduct the socioeconomic study.
Since the selection of the NAS study committee in July 2010, the NAS panel has held six public meetings, including two in Washington, DC, one in Richmond, one in Danville, one in Boulder, Colorado and one in Saskatoon, Canada. The committee allowed public comment at all six meetings, including two town-hall style meetings attended by hundreds of members of the general public in Danville and Richmond.
The NAS allowed a 21-day written public comment period after the selection of the provisional committee members, and has maintained an indefinite open door policy for written public comment throughout the entire 18-month study process.
The NAS panel has received presentations from more than 25 local, state and national stakeholders, including the Natural Resources Defense Council, Southern Environmental Law Center, Roanoke River Basin Association, Dan River Basin Association, Piedmont Environmental Council, U.S. Nuclear Regulatory Commission, U.S. Environmental Protection Agency, U.S. Department of Energy, U.S. Mine Safety and Health Administration, National Institute of Occupational Health and Safety, U.S. Centers for Disease Control and Prevention, U.S. Geological Survey, Virginia Department of Mines, Minerals and Energy, Virginia Department of Conservation and Recreation, Virginia Department of Environmental Quality, City of Virginia Beach, Virginia Tech Center for Coal & Energy Research, Virginia Natural History Museum, Virginia Energy Independence Alliance, National Mining Association, Virginia Uranium, Inc., Virginia Energy Resources, Colorado School of Mines, Colorado State University, USC Institute for Global Health, Colorado Department of Public Health & Environment and Southwest Research and Information Center.