Good times in the mining sector, eh? Gold and Silver Index (XAU) remains consistently higher than 120 have reached a peak of 156 in January, a level that has not been seen since 18 September, 1987. Spot uranium prices higher was in January 1980. Flock? Fill the gas tank is to remember that oil prices are still painfully high. So you have to say the mining companies are enthusiastic about their happiness? Wrong! There is a crisis of Spermmining sector, which was held from radarskerm of a typical investor. This new emergency could push commodity prices to levels even higher in coming months, probably until the end of this decade.
These two decades marked the market led many geologists and other skilled technicians in the mining sector. Drilling company declared bankruptcy. Even with the recent explosion of activity in mining, exploration of the area is less than one third of its peak in1981, where more than 5,500 facilities in operation.
The employment, the mining sector and a shortage of drilling has gone the "we are in a stage of crisis. Without qualified geological and drilling rigs to explore and develop programs, a company may fail to get their projects in line with quickly enough to meet global demand for their metals, including gold, silver, copper and uranium. Baker Hughes North American Rotary Rig count is a barometer of howstrong commodities boom has hit the sector. In 1999, the American and Canadian rig count to its low of 488 on 17 March, the figure was in 1546 and climbing. Over the past seven years, the score jumped 316 percent. Compared to a year ago, the count of North America Rotary Rig has increased by almost 20 percent. International Rig same number increased by almost 60 percent.
During our investigation at three months, we find the work and the lack of equipment are notonly uranium, but also for coal, oil and gas, methane from coal mines and veins of precious metals discovery. Ed Calvert, who manages Nucor Publishers drilling in Wyoming, it proclaimed: "There is simply no available platform up and can find one, but it was a problem finding the rig at the right time." His company began looking for a rig in the month of September for the drill is scheduled for 1 June. Calvert explains that the big oil companies had signed contracts up truck, so that would notcaught short, adding: "Among the banks are not used every day or not pay taxes to uphold."
Vancouver-based Max Resources announced in early January of this year, has received permission to drill on its Thomas Mountain uranium prospect in Utah. They had hoped to drill in late January, after the availability of drilling rigs. We have its uranium geologist Clancy Wendt, who complained in early February, in discussion, "I thought I had a tractor, moved. Now weidea when we get a tractor. "Max Resources has recently announced that it intends to start or drilling in about half of March. Norman Burmeister planned more wisely, which was announced in mid-January Kilgore Minerals will drill of the company's gold property in Idaho in July . But Burmeister stumble in the movement of its ownership of uranium skips the process: "I'm still in search of an archaeologist I own Nevada. Just not available. "Until he finished with this stepprocess allows, Burmeister can not imprison a drilling contractor to help his sketches prospect of uranium.
Palestinians shortage of drilling rigs when scary equation narrowness of the labor market in the mining sector. According to the February 2006 Employment Situation Summary, published by the U.S. Department of Labor, mining has its upward trend in February, adding 5,000 jobs. "Cynthia Pomeroy, Director of the Minnesota Department of work confirms the crisis, "There isClearly a lack of work. "
Matt Grant, assistant director of the Arizona Mining Association has finally announced, "There are 800 jobs directly in my work that could be filled today." He quickly let another 2400 indirect jobs in the service of the mining sector remains empty, begging for bodies in these respects. Geologists from making between $ 35,000 and $ 50,000 per year. Geologists Posted command $ 200,000 and higher. Mining consultants get $ 800-1000/day.Even the day helpers rigs is the amount of $ 22/hour or more. Wyoming State and county development associations have participated in job fairs in Michigan serious attempt to fill the vacancy by the growing job recruiting laid-off Auto Workers.
David Michaud, chairman of TheJobPit.com find jobs for geologists, blacksmiths and others in the mining sector. A mining and metallurgical engineering consultancy, who graduated from Queens University in Kingston, Ontario, and until recently the operationsCorriente Resources Manager in Ecuador, started his agency for the use of the Internet for the mining sector, because the demand was overwhelming. "The guys who have said that twenty years had never been a market like this then," said Michaud. "Over the past ten years, graduates of the Mining Mining fed to the wolves. Now, they need it. All are committed to those faraway places with no buyers." Michaud mining companies blamed for their lack of foresight, "Miningfirms need to anticipate that the demand for professionals such as geologists, production will increase the price of metals. There was no work for the last eight years. "He added:" It 'takes two to five years not lead. "
For example, Michaud desperately trying to fill a South American mining company to open jobs for an expert in metallurgy. "Free housing, two motorbikes, four weeks off a year, two flights, almost no living expenses and a salaryU.S. $ 150, 000, "said Michaud sad because nobody has jumped on the offer." Within the metals sector, including operators mill, metallurgical engineers, and operators Tech, some 150 new jobs are offered every month. "Only about half will be filled. Michaud warned copper mining companies, in particular the need to fill openings for new jobs.
Uranium Industry struggling to keep demand
The U.S. Energy Information Administration said in its latestpublished report, "Industry of United States uranium production began with a turnaround in 2004. drilling of uranium in the United States, extraction, production and work activity increased for the first time since 1998. Several companies carried out the exploration and development drilling, as in the previous 2 years. Employment in the United States, production of uranium for years, the industry-a total of 420 persons, an increase of 31 percent of the total in 2003. Wyoming is responsible for 33 percent of total employment in 2004, whileColorado and Texas employment has almost tripled since 2003. Overall, $ 86.9 million went to the drilling, production, land, exploration, reclamation and restoration activities in 2004. "And it was in 2004. Before employment snapshot looks today?
While the spot price of uranium continues to grow, the exploration companies is difficult to identify a veteran uranium geologists, to sign contracts for drilling rigs, and operate these platforms. Calvert Nucor laughs, "This conclusion isretain employees is certainly a problem. "Michaud explains:" This is a metallurgist is hard enough. To find an experienced uranium is almost impossible. "David Miller, president of Strathmore Minerals, complained:" Experience in the field of uranium begins with geologists who have made discoveries in 1940 through late 1970. They formed the next generation, which coincided with the boom of uranium in 1970. The increase was of short duration, and fizzled in 1981. A very small numbertraining in the field of uranium over twenty years on the market bear. Now that the number of uranium companies has grown to more than 420, there is a potentially catastrophic shortage of expertise of uranium. "The generation gap has come to haunt the industry.
What is the solution? Many of those who Michaud believes are "retired baby boomer retirement to fill the hole generation and their last race of metal within the sunset."
Bloomberg Newspublished an article on December 8 to discuss developments in the oil sector, "American manufacturers and entrepreneurs such as Ryder Scott, which evaluates projects for drilling and oil and gas, to work harder to keep their older workers and university graduates, because we are sinners' t have enough new engineers to go around. engineers who will help you find oil deposits are in high demand … "
UR-Energy Chief Executive William Boberg reflected from her mailbox recently, Dawn Schipper, duringour journey in his office, "You have a candidate degree in engineering from Colorado School of Mines see," he said. "His experience with uranium is now two weeks." Sound in his company has decades of experience in uranium, but is three times the age of Dawn.
Aging talent has found its way into the uranium sector. Aging geologists like Dr. Boen Tan, who helped discover two of the central lake deposits of uranium in uranium-rich Athabasca Basin in Canada early 1970, is now helping ForumDevelop explore new deposits of uranium in its Costigan Lake Key Lake Road and Maurice Point project in Belleville. Uranerz Energy Global Advisory Board made up of former Uranerz specialists, including top geologists, Dr. Franz Dahl Kamp and Dr. Gerhard Ruhrmann. Respectively, were 45 and almost 30 years of experience in the field. Strathmore Minerals geological team consists of former employees Pathfinder Mines, a subsidiary of Cogema, including members of the board Krewedl Dieter,David Miller President and Vice President of Technical Services, John Dejoie. Some of these companies to carry more than 200 years of experience, collectively, for their new businesses. But without adequate schooling, the new data mining to mentor each other, the exploration and future development will be recoverable. Michaud announced a chilling observation, "Every year, Canadian universities produce less than 10 new metallurgical engineers."
What does the future
What is worryinguranium market, in particular, is that the rising price of uranium on the spot shows no signs of slowing down. The crisis comes at a time when the Bush nuclear initiative was announced by several utilities in the United States are planning to add to its nuclear fleet, and as China and India, which requires a reliable source of uranium to fuel their aggressive nuclear programs. Without uranium for reactors that produce electricity are required to meet their needs. As a side note,Uranium mining is the stage of the nuclear fuel cycle, when the environmental zealots are baring their teeth. Last November, an office manager in Albuquerque's Southwest Research and Information Center, an anti-nuclear activist group reported, funded by the Mott's apple juice and Ben & Jerry's ice cream, tell us when we go undercover, "We want to stop forward part of the fuel, which is uranium mining. "
Do not say that the warnings were not properlyadvance. At the World Nuclear Association (WNA) Symposium in 2004, Dr. Moukhtar Dzhakishev, a Russian physicist and former Deputy Minister of Energy and Mineral Resources of its conclusions, "First, the capacity of extraction of natural uranium is not required reactor. Second, stocks of reprocessed uranium sooner or later collapse. Third, the spot price does not reflect the real problems, in contrast, is able to fool us all about the urgency ofinvestments in the development of new mines is done. "
In his speech, said Dr. Dzhakishev at WNA, "Judging from these facts, the conclusion is clear: one day nuclear plants would be a shortage of natural uranium and is not necessary to be a prophet to predict for this. E ' clear that today the key to solving the major problems of the uranium market in developing the potential producers of uranium. "
Last August,Angela Jameson reported the online edition of the Times of London, "A global shortage of uranium could jeopardize plans for the construction of a new generation of nuclear power plants in the United Kingdom … A recent report by Asia Pacific Foundation of Canada said there would probably be 45,000 tonne shortage of uranium within the next ten years, mainly due to growing Chinese demand for metals. "
The upward spiral of raw materials is in full boom boom at full speed. Depending on who youspeaking, employment and a shortage of drilling is either very bad or worse than you might think. If there are shortages of raw materials stock now, what happens at the end of this year or next decade, if current exploration efforts have founded companies, because the equipment the lack of qualified staff and appropriate skills to explore and / or their property for development? You can use a drilling rig, if you can not get one. You can analyze the property if it is not possibleDrillers find the rig running. While commodity prices are rising to levels not seen for twenty or thirty years, the tight labor and equipment market prices are much higher level of Ratchet. And the junior uranium development companies with proven pound-in-the-ground assets, seeking acquisition targets for these personnel and tooth drilling to bring projects online.
For investors who have jobs and a shortage of drilling a blue sky. When stocks fall belowcommodity prices continue to rise. For investors in junior uranium could one day, while the reasons "hidden" because the spot uranium prices continue to rise past $ 40/pound realized. If you do not live for the merchandise is not, you can find and develop. This underlines the need for $ 50/pound uranium in the near future. Now we can understand why Strathmore Minerals' David Miller told us in November, "I would not be surprised to see uranium prices double again."
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