William Tauzin: “Mr. Chairman, the proposed amendment would prohibit the Department of Energy from selling into the open market…”

“Mr. Chairman, the proposed amendment would prohibit the Department of Energy from selling into the open market approximately 85 percent of the Department's inventory of approximately 21,000 metric tons of uranium until after the year 2009. However, this amendment would not prevent DOE from selling approximately 3,700 tons of uranium, or 15 percent of its total inventory, that the DOE is required to sell by statute pursuant to the U.S.E.C. Privatization Act. Many domestic uranium mining companies have stopped production or are on the verge of bankruptcy. We do not want the Government to cause further deterioration in the uranium markets by selling its vast quantities of uranium inventories. The amendment seeks to prevent the further deterioration and downward price pressure on the price of uranium by restricting DOE from selling 85 percent of its inventory. It is my understanding the Department has already implemented a memorandum of understanding dating back to 1998 that restricts the sale of the same quantity of uranium it holds in inventory. Thus the proposed amendment seeks to codify sales restrictions that the Department of Energy has already determined were necessary.”