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Uranium One, until 2010, was a publically traded Canadian company. Then the Obama administration and the Democrat majority lame duck Congress agreed to let them get taken over. Because of the meetings for the new START Treaty, Russia’s AtomRedMetzoloto (ARMZ) was allowed to go from 16% ownership to 51. ARMZ is part of Russia’s Rosatom state nuclear agency. While the Russian government has used the Democrat party, the employees have shown who they trust with their donations.

About Uranium One

Here is how Uranium One describes themselves on their website.

Uranium One Inc. is a Canadian-based company and one of the world’s largest uranium producers with a globally diverse portfolio of assets located in Kazakhstan, the United States, Australia and Tanzania. Headquartered in Toronto, Uranium One is a wholly owned subsidiary of JSC Atomredmetzoloto (ARMZ) which is a wholly owned subsidiary of Rosatom, the Russian State Corporation for Nuclear Energy.

How the sale was handled

Here is part of the Washington Times article on the new START treaty.

Four leading House Republicans, citing national security concerns, are urging Treasury Secretary Timothy F. Geithner to block the sale of a Wyoming-based uranium mine to an arm of the Russian government’s main nuclear agency.

The lawmakers are raising alarm over the proposed sale of a Powder River Basin, Wyoming-based uranium processing facility operated by Uranium One USA, a Canadian-based company, to Atomredmetzoloto, a subsidiary of the Russian government agencyRosatom, according to a letter obtained Tuesday by The Washington Times.

The sale was first announced on Aug. 31, and the lawmakers claim that it could give Moscow control of up to 20 percent of the U.S. national uranium extraction capability and a controlling interest in one of the country’s largest uranium mining sites.

The GOP opposition to the business deal is the first major political clash over foreign investment in a sensitive U.S. industry since the fight over Dubai Ports World in 2006. In that clash, bipartisan outrage on Capitol Hill erupted when the George W. Bush administration tentatively approved the purchase of contracts to manage six major U.S. seaports by the company based in the United Arab Emirates.

This time, the proposed sale presents a test for President Obama and Secretary of State Hillary Rodham Clinton of their hopes to “reset” relations with Russia on a wide range of fronts

How Uranium One was helped by  being bought out

Here is part of the World Nuclear News article about ARMZ buying Uranium One.

Russia’s AtomRedMetzoloto (ARMZ) and Toronto- and Johannesburg-registered Uranium One have signed an agreement that will place Uranium One among the top five global uranium producers and see ARMZ take a controlling interest in the company. Meanwhile, Russia may be about to open an enrichment plant to part-foreign ownership.

ARMZ will contribute to the deal its interests in two Kazakh in-situ leach uranium mines – its holdings of 50% in the Akbastau mine and 49.7% in the Zarechnoye uranium mine – plus $610 million in cash. In return, the mining division of Russia’s Rosatom state nuclear corporation will receive 356 million common shares in Uranium One, which along with ARMZ’s existing 23.1% holding will give it an interest of at least 51% in the company.

The addition of ARMZ’s assets to Uranium One’s existing projects will see the company’s production in Kazakhstan increase by about 60% from its current 10 million pounds U3O8 per year to 16 million pounds U3O8 per year, at consolidated cash costs of less than $20 per pound, according to Uranium One. Akbastau is contiguous to the Karatau operation in which Uranium One has a 50% holding, giving scope for management and operating systems synergies.

Uranium One CEO Jean Nortier said the deal would position the company “to be among the world’s top 5 uranium producers by 2011,” while ARMZ director general Vadim Zhivov said that developing and operating projects in Kazakhstan was a priority for the Russian company. “We are confident that Rosatom’s controlling interest in Uranium One will allow it to further strengthen its excellent relationship with its partners in Kazakhstan and to open up new promising avenues for cooperation,” he said.

Why the US needs Russia on this

Here is why the US has to work with Russia on matters dealing with uranium, from an article in the Colorado Independent.

In a statement to the Colorado Independent, Colorado Sen. Mark Udall, a proponent of reviving the nation’s moribund nuclear power industry, said the ARMZ sale needs to be watched closely.

“With the increasing interest in strategic minerals, it’s definitely valid and responsible to ask serious questions about who has the right to extract, own and develop them, and I’m continuing to study the situation involving Uranium One,” Udall said. “I also understand that the proposal must be cleared by the U.S. Committee on Foreign Investments.”

U.S. Treasury Secretary Tim Geithner also must sign off on the sale, and he will have to do so under a cloud of suspicion dating to the Cold War and the fact that a deal supplying American nuclear plants with uranium from old Russian nuclear weapons is set to expire in 2013. Despite a virtual freeze on new nuclear plants since the Three Mile Island accident in 1979, the U.S. still gets 20 percent of its electricity from aging nuclear plants.

More than 90 percent of the uranium used in U.S. nuclear plants is imported, and under the expiring weapons program, up to a third of that supply comes from Russia. Colorado is a former uranium-mining hotbed that produced uranium for some of the first atomic weapons, and in some depressed areas of the state an industry revival is viewed favorably. But there is mounting environmental and political pressure to clean up the industry’s toxic legacy and limit future operations.

Uranium One’s Schwab sees that as a mistake.

“If you think oil is bad, uranium is in the exact same picture where you import all your uranium and you’re going to be held hostage to that when in 2013 the agreement with the Russians ends,” he said. “Then, where do you get your uranium from?”

The Senator’s press office refused to talk with this journalist, so there is no ability to follow up. It makes one wonder how much following up the Senator’s office is actually doing.

Russia acquires all of Uranium One

Here is some info about Uranium One being completely bought out by the Russian government owned ARMZ.

Uranium One Inc. (“Uranium One” or the “Corporation”) today announced the closing of its going private arrangement transaction, pursuant to which Uranium One Holding N.V. (formerly Effective Energy N.V.), an affiliate of JSC Atomredmetzoloto (“ARMZ”), acquired all of the outstanding common shares of Uranium One that it and its affiliates did not previously own.

Financial Post had some issues with this, citing that, after Fukushima, such a deal would not be of interest to any other investor. Also, that they were offering more than the shares were worth. With the help of Rose Gottemoeller, when she was negotiating the START Treaty for the Obama administration, it shows that Russia has been inching its way to being a major producer of international uranium, all starting. That could make one wonder why they would want this.

Political contributions from Uranium One employees

The employees of Uranium One do not donate to the Democrat Party. Their trust is in certain Republicans who have shown that they have knowledge in the industry. Most of the donations have gone to those members of Congress who have worked hard in understanding the needs of this nation when it comes to Uranium. That does not mean that there has not been some influence, it just means that is who the employees trust as voters.





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