RIVERTON AP) - Kennecott is suing a partner In a uranium mining venture to dissolve the 10-yearold.project Kennecott claims costs too much and will not be profitable.

In a countersuit, US. Energy Corp. of Riverton accuses Kerr necott and its parent company, U.K - based Rio Tinto, of con. spring to get rid of the venture because it would compete with their other uranium projects worldwide.

U.S. Energy is seeking $3.25 billion in compensatory and punitive damages from Kennecott and Rio Tinto. according to court documents filed in Fremont County District Court.

Rio Tinto bas uranium holdings in Namibia, Africa, Western Australia and Canada.

The Green Mountain Miming Venture was formed to explore the possibility of developing underground uranium at Green Mountain near Jeffrey City.

Kennecott claim the venture has cast more than $60 million anti would cost substantially more before uranium is produced. Development was halted In July 1998 because the deteriorating market for uranium has not eased up since the partnership was formed.

"It is unlikely that the venture will ever realize a profit or earn money on a cash flow basis by further developing uranium properties," according to Kennecott's lawsuit, filed Nov. 10,1999.

Kennecott claims U.S. Energy could have bought its share of the partnership but the two were unable to complete any such transaction.

Both sides were deadlocked over a budget, thus voiding the partnership agreement, the law suit said.

The partners have "substantial disagreements over the necessity for further exploration and the appropriate methods and means for further development," the lawsuit said.

Kennecott also cited "constant friction and disagree ments" and threats made by US Energy.