Uranium Industry Study: Significant Economic Impact in Texas

AUSTIN, Texas--(BUSINESS WIRE)--Texas’ uranium industry provides $311 million dollars annually in economic impact and more than 1,160 jobs to rural, underserved and often neglected Texas counties, according to a newly released study conducted by the Center for Economic Development and Research at the University of North Texas.

“The increased employment and expanded tax base brought by uranium mining means that all of a community’s residents reap the benefits from the expanded services now available to them.”

The study, commissioned by the Texas Mining and Reclamation Association (TMRA), examined the economic and fiscal impacts of uranium production in Texas. It found that the Texas uranium mining industry not only contributes $311 million annually in economic impact to local economies but also helps those economies grow by attracting additional business and industry. The most common growth is seen in sectors such as food services, wholesale trade, mining support services, architectural and engineering, real estate and healthcare.

“The new business that accompanies uranium mining projects is vital to these rural communities, which are often underserved in terms of access to basic services such as healthcare,” study author Terry Clower of the University of North Texas said. “The increased employment and expanded tax base brought by uranium mining means that all of a community’s residents reap the benefits from the expanded services now available to them.”

The uranium region in Texas stretches across the coastal plains and includes 11 South Texas counties, so the industry’s economic impact is widespread. It is an industry that provides a positive effect for local economies as the companies rely on local communities when purchasing the goods and services they need to run their operations. They also contribute to the local economy in the form of royalties paid to residents who lease their land for uranium production.

“Texas is an important producer of uranium as a source of nuclear power for our nation’s ever-growing energy needs,” Chairman of TMRA’s Uranium Committee Howard Fels said. “This demand is projected to increase in the coming years. The communities that are home to uranium mining projects are perfectly poised to see continued, long-term economic benefit from the industry in terms of more jobs, new businesses and increased tax income.”

Other highlights of the report include:

To date, more than 80 million pounds of uranium -- worth $4.8 billion at current prices -- have been produced in Texas
The uranium mining industry in Texas is currently seeing an increase in activity because of improved mining methods and rising uranium prices
The Texas uranium mining industry annually pays more than $78 million in wages and close to $15 million in state and local taxes

A complete version of the study, Uranium Mining in Texas: Economic and Fiscal Impacts, may be found online at www.tmra.com.

About TMRA’s Uranium Committee

TMRA’s Uranium Committee was formed to promote public understanding of the exploration, mining and production of uranium by raising awareness of responsible, safe uranium recovery and environmentally protective reclamation methods currently used to develop this valuable resource. Meanwhile, TMRA is working to solidify the needs and opinions of the various mining sectors into one voice on the balance between mineral production, environmental protection, economic strength and public welfare. The committee is composed of five member companies, including Uranium Resources, Inc.; MULLC; Uranium Energy Corp; Signal Equities, LLC and Rio Grande Resources. Please visit http://www.tmra.com for more information.