[NukeNet] U.S. To Ship Tons of Uranium Across Globe for Nuke Energy Production

[Mike Ewall]

http://tpr.typepad.com/thepeacockreport/2006/11/us_to_ship_tons.html

U.S. To Ship Tons of Uranium Across Globe for Nuke Energy Production

November 24, 2006 The Peacock Report

Over 17 metric tons of highly enriched uranium (HEU) are slated for 
transfer into the hands of private contractors, whom under the 
auspices of the U.S. Dept. of Energy program will "down-blend" the 
weapons-grade material into nuclear reactor-friendly low-enriched 
uranium (LEU) -- which would then be shipped to foreign nations. The 
purported goal of the project is to dissuade other countries from 
pursuing uranium enrichment weapons-development programs, a measure 
which the National Nuclear Security Administration (NNSA) hopes to 
accomplish by providing those nations with the products necessary to 
move forward with nuclear energy initiatives.

The Reliable Fuel Supply program seeks to "ensure reliable access to 
nuclear fuel feedstock for power reactors in foreign countries...," 
according to a planning document that TPR located through a routine 
search of the FedBizOpps database. The Nov. 8 document further notes 
that "This material will provide a significant reserve that will 
increase the confidence of countries voluntarily choosing not to 
pursue enrichment and reprocessing that they will not risk losing the 
benefits of nuclear power."

The selected contractor will convert 17.5 MT of the highly enriched 
uranium into 40 MT of the low-enriched uranium, it said. NNSA's 
Office of Fissile Materials Disposition will oversee the activities 
of the vendor, who likewise will be responsible for transporting "a 
substantial majority" of the resulting low enriched uranium to an 
unnamed, designated storage facility.

NNSA did not specify what percentage of this "substantial majority" 
of LEU would be shipped internationally. Similarly, it vaguely noted 
that "much" of this reprocessed uranium would be given to the 
contractor as compensation for its efforts, in addition to the 
execution of a "property loan agreement" to conduct the operation.

The agency plans to release a formal Request for Proposals for this 
endeavor sometime in late December or early January. It also said it 
expects to award a five-year contract by April or May 2007.