best uranium stock to buy, page-3

wait and see Redfrog.

According to the U.S. Geological Survey, in 1998 carbon steel accounted for 38 percent of domestic vanadium consumption (an estimated 4,700 metric tons), high-strength low-alloy steel accounted for 20 percent, full alloy steel comprised 19 percent, and tool steel accounted for 10 percent.

Vanadium and uranium are mined together, then separated by liquid extraction techniques. Columbrium, manganese, molybdenum, titanium, and tungsten can be substituted for vanadium to some degree and in some applications. While it is difficult to establish specific reserves, the largest reserves of vanadium are found in South Africa, China, the former Soviet Union, Australia, and the United States. Vanadium resources in the United States are sufficient to satisfy domestic needs. Nevertheless, foreign suppliers met a substantial portion of vanadium demand. In 1998 South Africa controlled 89 percent of the vanadium pentoxide market, China held a 6 percent market share, and Russia had 4 percent of the market.

Eight U.S. companies mined or milled vanadium in 1998. Raw materials used in milling vanadium included Idaho ferrophosphorus slag, petroleum residues, spent catalysts, utility ash, and vanadium-bearing iron slab. End-use distribution of vanadium from U.S. plants goes to transportation, which used 30 percent, the machinery and tools industry bought 27 percent of output, and building and heavy construction, 22 percent, among others. Vanadium averaged $4.00 per pound in 1998. I think current prices are over $25.00.

In 1997, 29 operations employed about 700 people who were engaged in the production of uranium, radium, and vanadium ores. Per production worker, the average value added in 1997 was $175,700. By comparison, in 1992, approximately 102 establishments employed 1,011 workers. For the same year, the average value added per production worker was $57,800. When ranked by the number of establishments per state, the top three were Colorado, Wyoming, and Texas.

In the mid-1990s, it was estimated that the largest 2 companies accounted for $5.3 million worth of uranium-vanadium industry ore sales, and 10 companies were responsible for nearly all of the output of the industry. Only 3 of the largest 14 companies were publicly traded, and the remainder were subsidiaries or divisions of other corporations. Of the 29 establishments reporting to the U.S. Census Bureau in 1997, only 5 employed 50 or more persons. Of the total of 29 establishments, 23 were producing establishments; 6 operated mines only; 9 operated mines with preparation plants; 2 were separately operated preparation plants; and 6 were nonproducing establishments. From 1972 through 1997, the primary materials consumed in the extraction of uranium compound ores, when ranked by cost, came in the form of other minerals and the use of installed machinery, followed by purchased electric energy.