A Canadian company plans to build a uranium-processing mill near Green River 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.

A Moab-based advocacy 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 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.

Mancos Resources officials did not respond to phone and e-mail messages seeking comment Thursday.