GREEN RIVER, Utah (AP) - A Canadian company plans to build a uranium-processing mill near this town in eastern Utah.

Mancos Resources Inc. of British Columbia says producers can't make enough yellowcake for the world's growing number of nuclear-fueled plants.

The company is the first to agree to buy a parcel in an industrial park made possible by the lease of state trust lands.

Emery County Commissioner Gary Kofford said a nuclear- or coal-powered power plant could be another tenant.

Mancos has been expanding its land holdings in the area as uranium prices rise. The company will need the approval of the state engineer, the Radiation Control Division and the Air Quality Division.

International Uranium Corp. operates the only working U.S. uranium mill, near Blanding, Utah, and survived lean years by processing contaminated soil or radioactive ore from others that wanted to get rid of it.

But interest in uranium milling is picking up.

Toronto-based SXR Uranium One Inc. has applied to state officials to reopen a mothballed mill in south-central Utah at Ticaboo, a company town.

It takes years for backers of uranium mills to pass technical reviews and win state permits, said Dane Finerfrock, director of the Utah Division of Radiation Control.

Wyoming's Sweetwater uranium mill has been on standby for years. The owner, Rio Tinto Energy America, said a sale to Uranium One was never completed and that the mill is still up for sale. Other uranium mills are being planned in Colorado.

A group called Uranium Watch says Mancos Resources plans to take 800 acre feet of water a year from the Green River. The Green River Canal Co. and the conservation group Red Rock Forests are protesting.

Mancos Resources officials didn't immediately respond to phone and e-mail messages from The Associated Press on Thursday.