Ban on BC uranium exploration now official (April 25, 2008)

Vancouver – Uranium exploration and development has been unofficially banned in the province of British Columbia for years but now the rule is official.

Minister of State for Mining Kevin Kruger announced B.C. is creating a “no registration reserve” that means future mineral claims will not include rights to uranium and said the province will ensure all uranium deposits remain undeveloped. The rules will also apply to thorium.

“By confirming our position on these radioactive minerals, we are providing certainty and clarity to the mining industry,” said Kruger.

Clarity was certainly needed. In 1980 a previous provincial government enacted a uranium moratorium, in response to anti-nuclear sentiments in the province. The moratorium lapsed in 1987 but exploration companies continued to focus on other metals, in part because of the widespread view that uranium production would be unpopular in the province.

More recently, however, several companies have taken interest in old uranium projects due to the skyrocketing price of the metal and the climate change-induced focus on emission-free energy production.

Boss Power (BPU-V) is one of those companies. Boss’s flagship project is the Blizzard uranium deposit, which sits 50 km southeast of Kelowna and hosts an historical resource of 2.2 million tonnes grading 0.214% U₃O₈. Following Kruger’s announcement the company lost 25 or 56% over two days to close at 20, far below its 52-week high of $1.29.

“We are obviously disappointed that the government has taken this position without any consultation with industry and without scientific evidence that modern uranium exploration is harmful to the environment,” said Boss CEO and president David Stone in a statement.

The president and CEO of the Association for Mineral Exploration in B.C., Dan Jepsen, echoed Stone’s lament.

Noting in a statement that uranium is a key solution in the greening of energy, Jepsen said, “We are disappointed that the government had not consulted our industry more in developing this policy.”

Kruger said B.C. will also amend the Health, Safety and Reclamation code to protect exploration companies that encounter uranium while exploring for other minerals.