U.K. Uranium Purchase ‘Will Help Canada’

Press, Volume CI, Issue 29890, 2 August 1962, Page 7

U.K. Uranium Purchase ‘Will Help Canada’

I By

MELVIN SUFRIN.

'. NZ PA. Special Correspondent]

TORONTO, July 31. Monday’s announcement that Britain will buy 24.000,0001 b of Canadian uranium for nearly 128 million dollars during the next 10 years means a breathing space for an industry that has fallen on hard times.

But the price of five dollar* a pound, which is just high enough to permit profitable produotion. indicates that B nain has lost none of its ablli.y bo strike a hard barn. Lecters of intent signed five years ago called for the delivery of 24 million pounds oaring the next four yea s at e.ght dollars a pound. Even that was less than the price paid during the post-war boanr) years. However, when the bottom fell out of die market. Britain natu ally decided this wet too much to pay Fall In World Demand In addition, u decided tt did not really need all that uranium in such a short period Toe contract will be divided among seven Canadian producers who have been able to survive the years s.nce the world demand for their product feE sharply. While several more efficient minmg operations are unhappy at having to share the contract, there is no doubt that this arrangement will help Canada's economy generally. For one thing. export* of any sort are important to the county 's hopes of emerging from the economic doldrums that have forced an austerity pro-

gramme on it, and while some industries in Canada will be hurt by British membersh.p m the Common Market, this will not be the ca-se with uranium. Canada's reserves of uranium ore are estimated at more tnan 377 million tons, and 400 million dollars has been invested in the development of the industry. During the 1950 s when the United States had practically no important uranium sources of its own and the world seemed caught up in enthusiasm for this mineral, there seemed an almost limitless future for Canadian producers 15.000 Tons In 1959 In 1959 the Canadian production of uranium oxide reached 15.000 tons Then Washington found that by subsidising American producers it could be almost selfsufficient. and in face of growing production in such countries as South Africa, the market fell sharply Boom towns in Northern Ontario, built on the promise of a growing demand, had to lay off thousands of workers The spectacular development of the industry came to a standstill Many miners and small busine-smen who had flocked to the new community of

Elliott Lake, on the ' north shore of Lake Superior, lost their life savings. Some saw their homes broken up. Children had to be sent to stay with relatives. Trailers that housed hundreds of wealth - seeking men vanished from this rugged outpost in the wilderness. Homes were abandoned. Rents that had been as high as in major cities fell sharply, and a population that once topped 25.000 dwindled to 6000. This scene was repeated on a smaller scale in southeastern Ontario and in the north-west territories where Canada's two other major sources of uranium are located. Sponsoring Research There were mutterings that the uranium industry had failed to sponsor research necessary to seek out new uses for the mineral. Critics pointed to the nickel industry which had spent millions on research in successful efforts to create new uses for its product with the result that nickel is one of Canada's major experts. Whether it is fair to blame uranium promoters for lack of foresight is debatable. In any case they belatedly recognised the problems two years ago and began making substantial contributions to research Now there are prospects that uranium will find a market among steel producers who can use it to reduce corrosion and there arc hopes that within 10 years uranium will be able to compete with other fuels as a source of electrical power production.