| OCR Text |
Show J SERVING MOAB AND SOUTHEASTERN UTAH SINCE 1896 mm- Volume 90 Number 8 Shutdown of Atlas Corp. operations a blow to Moabs ailing economy An economic shock rocked the community late last Wednesday, when Atlas Minerals, one of the areas major em-- . ployers, announced it was shutting down its Moab mill and three mines. Although exact figures were unavailable, indications are that the closure will affect approximately 160 to 180 employees. Tractorltrailer rigs sit idle in a parking area in north Moab, following announcement of a temporary closure by McDougald Oil Company this week. Company officials stated that the shutdown was ordered to permit reorganization of the operation. An estimated 40 employees were idled by the closure. No time estimate was given for the start-uof operations, but spokesman Bill May stated that a news release would be issued once the reorganization was completed. p Temporary shutdown at McDougald Oil Co. will impact around 40 jobs A temporary shutdown of McDougald Oil Company of Moab is expected to affect approximately 40 employees, according to information released by the operation this week. , Company spokesman Bill May said the shutdown was orof for dered purposes reorganization. He stressed that the closure was a temporary measure, and should be regarded as a temporary reduction in the force. During McDougald reorganization, trucks are., being; stored 4on the Decision announced companys property at the north end of town. May commented that little information could be released at the present time, as no major decisions have been made regarding the operation. He stated as that soon the as reorganization has been completed, a news release will be issued. The reorganization followed the death of company president, founder, and chief operations officer K. E. McDougald, who was killed in the crash of a light plane last Noveraber... . The company plans to process its remaining stockpile of ore and draw down the supply of chemical milling agents before shutting down the mill, a process expected to last Until about March 15. A workforce of about 30 people will remain on the payroll to maintain the facility on a standby basis, awaiting improvement in the uranium market. During recent years, the price of uranium concentrate has dropped from $44 a pound to about $18 a pound. v-- . In a news release on the shutdown. Atlas President Edward R. Farley, Jr., stated, We have produced enough U308 in concentrate to meet our sales commitments over the next 12 months and we have sufficient additional inventories to make sales into the uranium market during the next year as opportunities attractive to us arise. However, the price for U308 has fallen in the last three months, occasioned mainly by utilities which have recently canceled plans to build nuclear power plants, placing large inventories of U308 in the sales market .at can be considered distress City fails to pick priorities for community block grants - Several topics were discussed by the Moab City Council at a meeting Tuesday, Feb. 21, in- y eluding two proposals for Block Grants in Grand Com-munit- County. The first proposal, reviewed by Evelyn Zimmerman, was submitted by the Canyonlands Fruitgrowers Cooperative. The : has requested a grant of ; $65,000 to be used in developing The fruit juice a plant. ' has already oborganization tained $70,000 in loans, to be used to purchasfplants, sup-plies and irrigationuipment. Mrs. Zimmerman told council members that the p expects a gross income of $629,000 during the first year of operation. With operating exof $426,000, the penses receive to a organization hopes will of which be $202,400, profit p memdistributed among bers. The hopes to develop a $3.4 million industry within 20 years. Porposal outlined A second proposal, presented by Ray Tibbetts, was submitted by Specialized Mine Services. The proposal asks for a loan of $50,000, to establish a second production line at the com- panys planned coal briquette plant near Thompson. If the loan is approved, Tibbetts said, the second line could open in June or July, rather than ; : co-o- p , co-o- co-o- co-o- p November. - With two lines in operation, he continued, the plant would employ approximately 60 workers., An additional 30, Tibbetts said, in would ' be employed the production of coal for the plant by New Tech Mining, from a mine in Thompson Canyon. Tibbetts added the firm should be able to repay the loan within one year, and the funds could again be used for a development project, such as a juice plant. County endorsement The Specialized Mine Serviv-ce- s project has already received the endorsement of the Grand County Commission. In addition, the commissioners will hold a public hearing in Thompson, Monday, March 19, at 7 p.m., to consider a request from New Tech for a $1.5 million industrial revenue bond. The Southeastern Utah Association of Local Governments, which allocates the Community Block Grant funds, has asked both the city and county to submit a list of projects, based on priority. Councilman Bill McDougald questioned whether the funds could best be used by the to establish the juice plant, or to fund the second production line of the briquette plant for only Councilman months. two Sheldon Hefner suggested that the city endorse the briquette plant, and attempt to obtain funding from other sources for the juice plant. More proposals Councilman Terry Warner out the deadline for that pointed submitting proposals is April 1, and suggested that a decision be delayed until that time, to permit additional proposals to be considered. The council voted to table action on the issue. a Following lengthy discussion, the council voted to accept a bid of $67,600 from Vinco Construction, - for renovation of the swimming pool bathhouse. An apparent low bid of $67,248, submitted by Dennis Godwin, was rejected, on the basis that the Vinco bid included a thicker understructure for new tile interior walls. Also accepted was a bid of $5,000 from Key Construction, to apply a new tar roof to the structure. Council members approved a request submitted by School co-o- , Superintendent Bill Meador, for up to $6,000 for the new Adult Organization Handicapped building. Meador explained that a bid opening for the new building will be held next Monday, Feb. 27. The organization has received funding totaling $88,319, including $69,450 in a Community Development Block Grant, and $18,869 from Grand County. Additional services and equipment totaling $14,203 have been deducted from this total. The city contribution, Meador said, would insure that the organization could accept a bid of $74,000 and $88,000. Funding approved Mayor Tom Stocks commented that the $6,000 could probably be provided through spending cuts in the citys 1984 budget, such as have already been made in the administration budget. The proposal passed unanimously. discussion with Following Travel Council Chairman Jim Sarten, the council agreed to again lease the Moab Visitor Center to the Travel Council for 10 years, at $1 a year, provided office space is available for the chamber of , commerce in the building. Stocks told members of the council that several citizens had complained over the parking of tanker trucks by McDougald Oil Company on a vacant lot between 5th West and Highway 191. He commented that part of the property is zoned 2 (commercial), and part R-- (residen- i C-- 2 tial). Parking questioned City Attorney Paul Morten sen, who was asked for an opinion by Stocks, stated that the issue would probably fall under a law which forbids operation of a trucking company within the city limits without council approval. He commented that the trucks were probably parked improperly under the current zoning ordinan-ce- . - (Cont. onPageA-3- ) - prices. That has further imbalanced the supply and demand ratio of U308 and has put strong pressures on the price level, which pressure we expect will continue for some months. Cash flow management He continued, Like most other domestic natural resource companies, we are at this time in the business of cash flow and this step management, seems prudent under current circumstances. It makes no sense to turn cash into inventory by continuing production of a product which cannot curren-l- y be sold profitably and to exacerbate even further the supplydemand imbalance for U308. Atlas Minerals parent corporation reported a net income of $19,357,000, or $6.54 a share, in fiscal 1983, compared to $27,068,000, or $9.14 a share, in fiscal 1982. The companys fiscal 1983 income included an of credit extraordinary a share, $3,400,000, or $1.15 compared to fiscal 1982 net income, which included an extraordinary credit of $1,940,000, or 65 cents a share. Total revenues for 1982 were $112,114,000. This dropped to $94,066,000 in fiscal 1983. No long-terdebt provide a good cash flow, said Farley. We intend to stabilize and preserve the situation until the market for U308 becomes stronger. Difficult step It is difficult to take this step, he added, because it requires the termination of jobs for almost all of our natural resources division employees, who have been productive, loyal, and faithful. We believe that the will for U308 market strengthen, the main question being when that will occur. When it does, we expect to offer employment again to these fine people. The companys exploration efforts are also being reduced, due to sufficient existing reserves. Farley reported that on the feasibility studies formerly Farley Project, called the Bullfrog, rear will continue. He Ticaboo, stated that the deposit contains the largest reserves of uranium the company has ever had in one group of properties, and that the average grade of these reserves is high. The deposit contains significant amounts of vanadium, he added. Support for industry Farley maintained support for the companys into the industry, saying, Despite the recent and almost total concentration by the press and other media on a small number m re-ent- Atlas is in the fortunate position of having no long-terdebts, and its other divisions are doing reasonably well and m of domestic nuclear plants which either have been canceled or are experiencing difficulties in obtaining licenses to operate, there are almost 80 nuclear plants operating in this country without great difficulty. There are also almost 250 nuclear power plants operating in other parts of the Free World, as well as many behind the Iron Curtain. He went on to state that each of the plants requires uranium every 12 to 18 months. In addition, he continued, additional plants, including some in the U.S., will be licensed for operation, requiring additional supplies of uranium concentrate. Industry here to stay The nuclear energy industry is here to stay, Farley The nuclear commented. cannot be energy genie put back into the bottle. When the market for uranium strengthens, we expect Atlas Corporation to be an important factor in that market and on a profitable basis. Employees were told Wednesday that the mines would be shut down that evening. Other employees were laid off at the end of the week. The remaining workers will continue to process the ore stockpile now at the plant. When the processing is completed, the majority of them will also be idled, with only a skeleton crew continuing to maintain the plant on a standby basis. Jobless rate will again go to 20 level, according to the predictions Candidates for the program must meet income criteria, and have been unemployed for a specified length of time. Job Service plans to conduct a series of weekly programs on During upcoming months, unemployment rate in Grand County will likely reach the record high levels reached last year. The Utah Job Service office in Moab estimated that the countys jobless rate may again hit 20 percent, following closure of the Atlas Minerals Moab mill and Atlas mining operations. Also expected to affect the unemployment rate is a temporary closure of McDougald Oil Company for reorganization. The estimate is based on a report for January released by the Utah Department of Emwhich ployment Security, forecast an unemployment rate for the county of between 14 and 15 percent. The actual unemployment rate for the county in December was 12.5 percent, and for November, 12.1 percent. With the latest layoffs, the 20 percent estimate matches a peak rate of 20.1 percent recorded in the job hunting, with information on arranging and preparing for interviews, filling out applications, and preparations of resumes. For further information, call 259-712- Times won major honors in newspaper competition The Times-Independe- nt received first place awards for Best News Story, Best Column, Best Photojournalism, and Best Ad, at the annual winter convention of the Utah Press Association, held in St. George last week. Attending the con- vention and accepting the awards for The Times were copublishers, Sam and Adrien Taylor. Best News Story honors went to The Times for a story run last January on the crash of a light plane near Canyonlands Airport, which was transporting approximately 1,000 pounds of marijuana. The story was written by News Editor Bill Davis. January of 1983. Assistance available Idled workers can obtain assistance in filing for unemployment insurance benefits at the Job Service office, 91 East Uranium Dr, The office can be contacted at the time of layoff, or a few days before layoff takes place. The office plans to provide unemployment insurance filing instructions to groups of up to 15 people, to provide faster ser- Selected as best column for the year was Enough Rope, also written by Davis. An ad produced jointly by The Times and Grand County Attorney Bill Benge, run during the holiday season, warned against drunk driving and The photojourshoplifting. nalism award was presented for a photo feature by Alvin Reiner, depicting the effects of light and shadow on rock formations. comThe other medium petes against sized circulation members of the Utah Press Association, which is oldest trade Utahs organization, this year noting its 91st year. free-lance- Times-Independe- r, nt vice. Additional services are also being provided by the office, including information on labor markets in other areas, to help workers decide whether a move to another area would be Job Service also is tied into a statewide computer of register job listings. Registers are also maintained for state and some federal employment. - . Other programs Some funding is available for short-terclassroom instruction, such as that offered by trade schools. The depart- m ment also conducts an "on-jowhere training program, prospective workers are paid by the employer at half the prevailing rate during training. b home the blue . . . Brought The received four major first place awards at the annual winter convention of the Utah Press Association, held last week in St. George. The awards included Best News Story, Best Column, Best Photojournalism, and Best Run of Paper Ad. Shown above with the awards are Adrien Taylor and News Editor Bill Davis. Times-Independe- nt |
