UIC NEWSLETTER # 6, 2003

November - December 2003


ISSUE HIGHLIGHTS


IAEA chief outlines new approach to non-proliferation

Fifty years after the famous "Atoms for Peace" speech to the UN General Assembly, Dr Mohamed ElBaradei, Director-General of the UN's International Atomic Energy Agency (IAEA), has outlined his concerns about shortcomings in the present non-proliferation regime, notably the Nuclear Non-Proliferation Treaty (NPT), and suggested what should be done about them.

He proposes that the civil processing of weapons-useable material (involving separated plutonium and high-enriched uranium) be exclusively in facilities under multinational control. Secondly, nuclear energy systems (notably reactors) should not require materials directly useable in nuclear weapons, and other parts of the nuclear fuel cycle should be made increasingly proliferation-resistant. Thirdly, he advocates consideration of multinational approaches to the management and disposal of spent fuel and radioactive wastes.

In proposing the internationalisation of processing and waste disposal, Dr ElBaradei has revived recommendations earlier advocated in the IAEA-sponsored International Nuclear Fuel Cycle Evaluation (INFCE) reports in 1980 and elsewhere - ideas that have not been prominent since. For instance the INFCE report on reprocessing and plutonium recycling said that "the evolution of institutional arrangements should be towards multinational ventures and could result in the development of regional nuclear fuel cycle centres." International control and storage of separated reactor-grade plutonium was seen to have non-proliferation advantages.

Enrichment and reprocessing
Since then the advent of modern centrifuge enrichment technology allowing small and relatively low-cost plants, including possibly undeclared plants, in countries without any major industrial base has exacerbated the problem in relation to high-enriched uranium. The INFCE report on enrichment recommended multinational facilities or national ones with supervision by other governments, and limiting the number of plants, with expansion "only in response to the needs of a competitive market". In the last few years there has been a multiplication of centrifuge plants from Pakistan to North Korea (outside NPT) as well as Brazil and Iran, without obvious commercial justification (Iran's foreseeable fuel needs will be met from Russia). Dr ElBaradei's concerns are underlined by his subsequent comment that "the margin of security under the current non-proliferation regime is becoming too slim for comfort." This applies most obviously in relation to centrifuge enrichment which is seen by some as the biggest single problem facing safeguards now, since there are few indicators of its use and it is very hard to detect undeclared plants. This means a heavy reliance on intelligence-gathering.

The centrifuge dilemma is most starkly seen at present in Iran. There is scepticism about Iran's substantial investment in uranium centrifuge equipment since its nuclear fuel needs will be modest for the foreseeable future and will be supplied ready for the reactors from abroad. (There is also some scepticism expressed about Iran's investment in nuclear reactors themselves, since it has large fossil fuel reserves. However, like Russia with its gas, it can export more of these for hard currency if it produces its electricity from non-fossil sources.)

On 3 November Dr ElBaradei said to the UN General Assembly: "In light of the increasing threat of proliferation, both by States and by terrorists, one idea that may now be worth serious consideration is the advisability of limiting the processing of weapon-useable material (separated plutonium and high enriched uranium) in civilian nuclear programs - as well as the production of new material through reprocessing and enrichment - by agreeing to restrict these operations exclusively to facilities under multinational control. These limitations would naturally need to be accompanied by appropriate rules of assurance of supply for would-be users.

Wastes
"We should equally consider multinational approaches to the management and disposal of spent fuel and radioactive waste. Over 50 countries currently have spent fuel stored in temporary locations, awaiting reprocessing or disposal. Not all countries have the appropriate geological conditions for such disposal - and, for many countries with small nuclear programs, the financial and human resources required for the construction and operation of a geological disposal facility are daunting." In an October article he had included research reactors in the scope of this suggestion and concluded that "considerable advantages - in cost, safety, security and non-proliferation - would be gained from international co-operation in these stages of the nuclear fuel cycle."

The INFCE waste management and disposal report firmly recommended that proposals "for establishing multinational and international repositories should be elaborated" due to their non-proliferation advantages. "Centralised facilities for disposal of spent fuel and/or vitrified high-level wastes .... would reduce the diversion risk" and be more economical.

Dr ElBaradei concluded this part of his UN address: "Taken together, these proposals in my view would provide enhanced assurance to the international community that the sensitive portions of civilian nuclear fuel cycle programs are not vulnerable to misuse."

High-enriched uranium
As regards eliminating weapons-useable material from the civil arena today, the problem is largely confined to half (130 or so) of the world's research reactors which were designed for high-enriched fuel. The IAEA already supports the Reduced Enrichment for Research and Test Reactors (RERTR) program initiated in 1978 by the USA, as well as Russia's RERTR program. These involve research on new fuels that increase the uranium density to compensate for lower enrichment levels. A recent CIA report cited Libya's developing nuclear infrastructure as an increasing concern - it has operated since 1983 a 10 MW Russian research reactor requiring 80% enriched fuel.

In relation to other areas such as power generation, new and more proliferation-resistant fuel cycle designs are, as Dr ElBaradei points out, already being developed in Generation IV and similar initiatives.

New framework
Dr ElBaradei in October reiterated that considerable advantages would be gained from international co-operation in many stages of the nuclear fuel cycle. A new framework should involve weapons states, non-weapons NPT states, and also those outside the NPT. It should, once established, become a "norm of international law - not vulnerable to any nation subsequently withdrawing" - at least without dire political and trade consequences.

He may be able to help the UN frame the means of achieving this, which would involve finding a way to bring countries like India into the NPT fold and be a major step forward in the context of his estimate that 35-40 countries are capable of manufacturing nuclear weapons within a few months if they were to break their NPT commitments. In the light of Iran's 22 years of deception and North Korea's much stronger advance towards nuclear weaponry, he said that the NPT in its present form "is not sustainable".

Economist 18/10/03, Times 1 & 4/11/03, INFCE summary report 1980, Statement to UN General Assembly 3/11/03, Times 13/11/03, WNA/UIC Research Reactors paper.


USA

Major energy bill stalls on final
After several weeks' House-Senate committee negotiation, the House of Representatives passed the 1148-page Energy Policy Bill 246-180, and it then moved to the Senate where it did reach a vote so will need to be revisited in 2004. The main stumbling block was liability protection provisions for a petrol additive, but there was some unease about the Bill's many special interest provisions.

The Bill incorporates significant support for nuclear energy, notably tax credits of 1.8 c/kWh for up to 6000 MWe capacity of advanced reactor designs, excluding those already certified. Tax credits for new coal-fired generation are also provided, and tax credits for wind energy (about 1.6 c/kWh unlimited capacity) already exist. A total of $635 million over five years is authorised for the DOE Generation-IV high-temperature reactor hydrogen cogeneration project in Idaho (INEEL). The Price-Anderson Act covering civil liability for accidents is renewed for 20 years.

A congruent $27.3 billion energy and water funding bill for 2004 was passed: 387-26 in the House and unanimously in the Senate, including $580 million for the Yucca Mountain high-level waste repository project ($190 million from the Nuclear Waste Fund - paid by consumers, the balance from defence). FY-04 funding for nuclear R&D is $273 million compared with $480 million for renewables and $530 million for fossil fuels.
Nucleonics Week 20/11/03, NEI Infowire 19/11/03.

Utilities seek permits for new nuclear plants
Exelon Generation and Dominion Energy have applied for early site permits from the Nuclear Regulatory Commission for construction of new nuclear power plants respectively at Clinton in Illinois and North Anna in Virginia. Both sites have operating reactors already. Their applications were followed by one from Entergy Nuclear for its Grand Gulf site in Mississippi. All three companies are receiving support from the Department of Energy to encourage commercial deployment of advanced reactors.

Early site permits are a key part of the process for licensing new nuclear power plants in the USA. They enable sites to be pre-approved for developments which proceed later, reducing the lead time then. They are the site counterpart of the NRC's design certification process which has pre-approved three advanced reactor designs so far and is processing four more. NRC decisions on the sites are expected in 2005.
NEI Nuclear Energy Overview 29/9/03, Platts 21/10/03.

Licence renewals and uprates
The US Nuclear Regulatory Commission has approved licence renewal for FPL's St Lucie nuclear power plant, extending the lives of the two units to 2036 and 2043. Soon after, the NRC renewed the operating licence of Omaha Public Power District's 476 MWe Fort Calhoun nuclear power plant in Nebraska for an additional 20 years, to 2033. This brings to 19 the number of US reactors extended by 20 years.

The NRC has also approved a 55 MWe uprate for Arizona's Palo Verde-2 reactor, to 1325 MWe, and a 37 MWe uprate for Southern Nuclear's Edwin Hatch 2-unit plant to 1885 MWe, all to be implemented by end of December.
Ux Weekly 29/9 & 6/10/03, NucNet business news # 63/03.

Exelon opts for rest of AmerGen
Exelon, the joint venture partner with British Energy in AmerGen, has exercised its right of first refusal to buy BE's half share in the company and take full control of its three units, which are already operated by Exelon. FPL Energy had offered $276.5 million and Exelon matched this price for the three reactors: Clinton, Oyster Creek and Three Mile Island-1, totalling 2419 MWe net. Exelon will now fully own 13 of the 17 reactors it operates.
NEI Nuclear Energy Overview 6/10/03.

Further US reactor sales
Dominion has agreed to purchase the single-unit 540 MWe Kewaunee nuclear power plant in Wisconsin for $220 million in cash. The price includes $36.5 million for fuel. Some $392 million in decommissioning funds will be transferred. The plant is one of eight operated by the Nuclear Management Co., a co-operative joint venture including both the Wisconsin utilities selling the plant. Dominion Energy will take over management upon completion of the sale. The reactor is presently licensed to operate to 2013, but a lifetime extension application will be considered in a few years. The price represents the highest yet paid for a US plant per kilowatt.year of remaining life, reflecting its $100 million steam generator replacement in 2001 and anticipating a $24 million vessel head replacement before it is finalised. An application for a 6% power uprate was lodged in May.

Following a bidding process, Constellation Energy has agreed to buy the R E Ginna nuclear power plant for $401 million plus $21.6 million for fuel. The 495 MWe pressurised water reactor started up in 1969 and is among the best-performing in USA. The sale is contingent upon the licence extension applied for last year being awarded and taking its life to 2029, as well as on normal regulatory approvals. A planned uprate largely enabled by 1996 steam generator replacement will increase capacity to 580 MWe. A power sales contract commits 90% of ten years' output to RG&E at 4.4 cents/kWh average and $202 million of decommissioning funds will be transferred to Constellation. Ginna will join two other nuclear plants (4 units) operated by them.
Constellation 25/11/03, Nucleonics Week 13 & 27/11/03.

First steps for US uranium downblending
The US Nuclear Regulatory Commission has approved the environmental assessment for a new plant to recycle blended-down US high-enriched uranium for use in power reactors. Nuclear Fuel Services in Tennessee has applied for approval to process uranyl nitrate from 33 tonnes of military surplus material and produce almost 700 tonnes of blended low-enriched uranium (BLEU) oxide fuel to be used in Tennessee Valley Authority reactors. This is part of a wider Department of Energy program to reduce US stocks of weapons-grade uranium, parallel to that in Russia involving 500 tonnes of military high-enriched uranium. The product of that, exported to the USA, now supplies half of US reactor needs.
Ux Weekly 14/7 & 13/10/03, Nuclear Energy Overview 13/10/03, FreshFuel 13/10/03.

EUROPE

Finns opt for Franco-German reactor
Finnish utility TVO has selected Olkiluoto as the site for its fifth nuclear power reactor and has indicated that Framatome ANP's 1600 MWe European Pressurised water Reactor (EPR) is the preferred plant on the basis of operating cost. Siemens AG would provide the turbines and generators. However, TVO has not yet excluded other bidders, notably General Electric and Atomstroyexport. Olkiluoto already has two 840 MWe PWRs operating and is the site for Finland's high-level waste repository. TVO is proceeding with negotiations so that finance and contract are finalised by the end of the year and a construction licence is then applied for. Meanwhile bids to TVO for shares of the 1600 MWe output totalled 2000 MWe.
Nucleonics Week 16/10/03 special & 27/11/03, TVO 16/10/03.

French inclination to building EPR
A French government white paper on energy policy has called for keeping the nuclear option open by constructing a demonstration unit based on the European Pressurised water Reactor (EPR). Beyond that the policy defines national goals as maintaining energy independence, low greenhouse gas emissions, and stable and moderate electricity prices. The future supply mix will thus depend significantly on gas prices 10-20 years ahead and costing of CO2 emissions, both suggesting the likely continued pre-eminence of nuclear energy. Opting for a fleet of EPRs or similar would be an alternative to extending the lives of EdF's current fleet of 58 reactors from an average of 17 years out to 55 years, while waiting for the advent of Generation IV technology, with greater safety and proliferation resistance, and producing less waste.

The 1600 MWe advanced reactor has been developed by Framatome-ANP with the involvement of French and German utilities - the latter having contributed some EUR 80 million over the last decade. It was adopted in principle in 1995 as the next generation standard French design, and would bridge the gap until Generation IV types are available. The Energy Minister said that the EPR is ten times safer and 10% more competitive than present French plants - already very competitive in Europe and making France the world's largest net exporter of electricity (68 billion kWh/yr). The first EPR unit is expected to cost EUR 3 billion - the same as the smaller N4 units now in service, and will be built without state subsidies. While French utility EdF would be the main customer and operator, it has strong expressions of interest from utilities in Italy, Spain and Germany to participate, and may reduce its own equity below 50%. German investment in a new reactor across the border, with import of power, would circumvent the present German government's anti-nuclear policy. An early decision on the EPR would enhance international sales prospects for the type.
Nucleonics Week 9/10, 13 & 27/11/03.

German reactor closes
As foreshadowed three years ago, E-ON's 630 MWe Stade nuclear plant has closed down for decommissioning. The PWR, which started up in 1972, is the second-smallest and second-oldest of Germany's 19 units, and has been the least economic to operate. The closure has been celebrated by anti-nuclear elements in the government coalition, but it is essentially unrelated to the current "phase out" plan of mid 2002, which will, if it remains, see significant plant closures in some 15 years time. Meanwhile and as announced in 2002, EnBW's 340 MWe Obrigheim unit, the smallest and oldest German reactor (started up in 1969), is expected to close in 2005.

The Chairman of Vattenfall Europe AG, a major German utility, has pointed to the need for Germany to invest some EUR 50 billion in its electricity sector. But in the light of negative sentiment towards both coal and nuclear, he comments that "Germany is increasingly being transformed into a vast experiment for field testing ideologically-motivated, unilaterally-promoted energy sources, devoid of any consideration of efficiency."
Nucleonics Week 17/10/02, Ux Weekly 17/11/03, Modern Power Systems German supp. Oct 2003.

British Energy agrees with creditors
Embattled UK utility British Energy has reached agreement with its creditors and the UK government regarding restructuring. The creditor agreement gives effect to what was outlined in February, and the related government agreement covers liabilities including reprocessing spent fuel and decommissioning nuclear plants. BE's cash costs for BNFL's fuel services will be linked to electricity price, and are expected to fall from 1.78 p/kWh to 1.45 p/kWh over the next three years, assuming a wholesale price of 1.6 p/kWh.

BE will issue £425 million in new bonds to significant creditors and existing bondholders who have claimed £1.3 billion, and will also issue shares to them for 97.5% of the equity in the restructured company. The government's Nuclear Liabilities Fund will get a further £275 million in new bonds, along with some £4 billion already provided in BE accounts for liabilities, plus ongoing contributions of 65% of BE's post tax cash flow. Present shareholders will be left with 2.5% of the new company. The European Commission needs to approve the government's role, particularly that via BNFL due to revised contracts. If all the new arrangements are agreed the Board is confident that the company will continue on a sound basis. If not, administration awaits. Either way, the government has stressed that BE nuclear plants will continue to generate almost a quarter of UK electricity. Meanwhile the government temporarily increased BE's loan facility to £275 million.
BE 1/10/03, Nucleonics Week 2/10/03, FT 2/10 & 28/11/03.

Italian blackout highlights vulnerability
A massive blackout affecting almost the whole of Italy - 57 million people - has highlighted the country's energy vulnerability. While the transmission failure from France only cut off 6000 MWe, it precipitated a wider grid failure. Italy imports 17% of its electricity, mostly nuclear-generated from France, since this is cheaper than Italy's own and public opposition has prevented construction of new power plants and transmission lines. Public opinion is evidently changing, and among options are utility Enel taking equity in French nuclear capacity, and restarting two Italian reactors closed down by government decision in 1987. These could be back on line 18 months - the 260 MWe Trino PWR had been operating 22 years and the 860 MWe Caorso BWR only 6 years.
Nucleonics Week 2/10/03.

Italy plans national waste repository
The Italian government announced that a national low and intermediate-level radioactive waste repository would be built in a geologically-stable salt deposit in its southern Basilicata province, but then withdrew the site after protests. The planned repository will take about 80,000 cubic metres of wastes, including decommissioning wastes, from 2009 and also store some 350 tonnes of spent reactor fuel. Sogin, a state corporation, will build and operate it as a national priority, since the wastes are currently stored at 200 sites around the country.
Nucleonics Week 20/11/03, NucNet news # 314/03, IHT 28/11/03.

Czech energy policy debate
With nuclear power currently supplying about one quarter of its electricity, divergent views of the future at 2030 have been promoted in the context of the country's first nationwide debate on such policy issues. The policy goals include energy independence, reliability, safety and environment protection. The Ministry of Trade & Industry favours building two or three more nuclear reactors to take nuclear share to 42-45%, with coal shrinking markedly and renewables at about 10%. An environmental assessment of this option showed that nuclear power "exhibited the lowest environmental impact of all energy sources considered." The Environment Ministry responded by favouring slightly greater greenhouse gas emission reduction, but wants 20% renewables share and a more modest increase in nuclear share to 31%. All options involve a major drop in brown coal use.

New nuclear units would probably be built at Temelin - originally conceived as a 4-unit power station, and the European Pressurised water Reactor (EPR) is a strong candidate. Austria has objected to nearby Temelin being proposed. However, despite voting 25 years ago by a bare 50.47% majority to abort the construction of its first nuclear power plant, Austria's electricity imports mean that more than 15% of its power is now nuclear-generated. Furthermore, there are complaints that its low cost means that energy efficiency measures have become less attractive to industry.
Platts Energy in E.Europe 31/10/03, NucNet news # 313/03, WISE Nuclear Monitor 24/10/03.

Russia ratifies aid rules
The State Duma has ratified an agreement signed in May which clears the way for foreign assistance in nuclear submarine decommissioning and clean-up. The vote (286-38) was for the Multilateral Nuclear Environmental Program in the Russian Federation (MNEPR) framework agreement that frees imported goods and services from taxation and ensures that donor countries and firms will not be liable for any accidents in the course of rendering clean-up assistance. The program will focus on naval spent fuel from decommissioned submarines and other radioactive wastes from Russia's Northern Fleet, particularly in the Kola Peninsula. Of 192 nuclear submarines decommissioned, fuel has been unloaded from only 116 of them and only 89 have been fully broken up. Overall, some US$ 20 billion will be involved over some ten years from the G8 Global partnership fund - about half of it from the USA.
AP 28/11/03, Nucleonics Week various.

ASIA

Japan to start new reactor construction
Hokkaido Electric Power has been given permission to start construction of the Tomari-3 nuclear power unit - a 912 MWe pressurised water reactor - by Japan's Ministry of Economy, Trade & Industry. Preliminary approval processes have taken since 1998, excavation begins shortly and the reactor is expected to enter commercial operation late in 2009.
NucNet news # 319/03.

New Japanese inspection auditing body
Following major lapses in inspection of nuclear plants and reporting, a new auditing body has been set up in Japan. The Japan Nuclear Energy Safety Organisation (JNES) will apparently cover those inspections which fall outside the brief of the Nuclear & Industrial Safety Agency (NISA) - the prime safety watchdog within the Ministry of Economy Trade & Industry (METI). Recent revisions to laws elevated some periodic inspections by utilities to statutory requirements. JNES will ensure that utilities undertake these properly, and also be involved with checks prior to operation of new plants.
NucNet news # 297/03.

China ready for new reactor bids
While CNNC has not indicated readiness to buy more Candu reactors at this stage, it has announced that foreign companies will be invited to bid for the construction of four new 1000 MWe reactors - two at Sanmen in Zhejiang province (near Qinshan) and two at Lingdong in Guangdong province (near Lingao), with construction to start about 2005. They are likely to be PWRs - Westinghouse is expected to bid its AP 1000 (which may have US design certification by then), Framatome ANP is expected to bid a design based on Lingao, or perhaps an updated version of the larger French N4 type, and Atomstroyexport will probably bid the VVER-91 as now nearing completion at Tianwan, with western safety features and control systems. A South Korean bid is also possible.

The indigenously-designed and constructed 610 MWe Qinshan-3 unit is not now expected to start before mid 2004 - it is a twin of Qinshan-2, both being scaled up from Qinshan-1. The first of the two Russian VVER-91 (1000 MWe) units at Jiangsu Tianwan in Liangyungang province is also due to start up next year.
Power in Asia 30/10/03, Nucleonics Week 27/11/03.

Russia and South Korea collaborate on small reactors
An agreement between Russia's Minatom and South Korea to collaborate on the development of small to medium-sized commercial nuclear power plants has been announced. This will apparently include two PWR types. Russia's KLT-40 (30-35 MWe plus process heat for desalination) is barge-mounted power plant, well proven in driving icebreakers.

On a larger scale (South) Korea Atomic Energy Research Institute (KAERI) is developing SMART (System-integrated Modular Advanced Reactor) - a 330 MWt pressurised water reactor with integral steam generators and advanced safety features. It is designed for generating electricity (up to 100 MWe) and/or thermal applications such as seawater desalination. Site selection for a pilot unit is under way and a construction licence is expected in 2005. Funding is expected to be mostly from industry, including especially Doosan - a major desalination plant constructor - and 30% from government, with KAERI as operator. Indonesia is also interested in it for Madura once it is licensed in Korea.
NucNet news # 300/03, Nucleonics Week 13 & 20/11/03.

China and USA team up on pebble bed reactor
Following government approvals in both countries, the Massachusetts Institute of Technology (MIT) and the Tsinghua University in Beijing will combine existing research programs to develop a new high-temperature gas-cooled reactor with fuel as a 'pebble-bed'. Tsinghua's HTR-10 demonstration reactor of this kind started up in 2000 and has broad research purposes. MIT has been doing studies and simulations, and will seek wider collaboration with the South African PBMR developments and in Europe where the technology is best known. MIT sees the technology as a strong contender for the hydrogen test reactor project at DOE's Idaho Laboratory (INEEL).
NEI Nuclear Energy Overview 3/11/03.

Indonesia narrows reactor choice
Indonesia's Atomic Energy Commission (Batan) has narrowed the choice of plant for its Muria site in northern Java to two: a South Korean 1000 MWe pressurised water reactor or a Canadian 700 MWe pressurised heavy water reactor - probably the KSNP+ and ACR-700 respectively. The project may be given to an Independent Power Producer to build and operate. Commissioning the first two units is envisaged for 2016. The IAEA is reviewing the safety aspects of the proposal. In addition, Batan's pre-feasibility study for a small Korean SMART reactor for power and desalination on Madura is almost complete, with site selection envisaged from 2004.
Nucleonics Week 20/11/03.

Iran censured by IAEA
The Board of the UN's International Atomic Energy Agency has resolved that it "strongly deplores Iran's past failures and breaches of its obligation to comply with the provisions of its safeguards agreement" and "re-emphasises the importance of Iran moving swiftly to ratification" of an Additional Protocol to that agreement and also acting meanwhile "as though that Protocol were in force". It also "requests" Iran to adhere to its undertaking "to suspend all enrichment-related and reprocessing activities" in a "complete and verifiable manner". "Should any further serious Iranian failures come to light" the Board will "consider all options at its disposal" including referral to the UN Security Council. The IAEA will now need to verify the implementation of these decisions and resolutions, and also identify the foreign involvement in Iran's clandestine activities.

An IAEA report released to its member states on 10 November showed that Iran had, in a series of contraventions of its safeguards agreement over 22 years, systematically concealed its development of key techniques which are capable of use for nuclear weapons. In particular, that uranium enrichment and plutonium separation from spent fuel were carried out on a laboratory scale. Iran has admitted to the activities but says they are trivial. The report draws a diplomatic distinction between these breaches of its safeguards agreement and their likely weapons intention, but says that "it will take some time before the IAEA is able to conclude that Iran's nuclear program is exclusively for peaceful purposes."
IAEA 10 & 26/11/03, Daily Telegraph 12/11/03, Times 13/11/03, IHT 21/11/03.

North Korean project suspended
The Korean Peninsula Energy Development Organisation (KEDO) has suspended for one year the project building two light water reactors to supply electricity in North Korea, due to that country's failure to meet non-proliferation conditions. The Kumho site will be put on care-and-maintenance, though US attitudes suggest that the suspension may be permanent. KEDO is a 1994 US, South Korean, Japanese and EU initiative, with 70% of the finance from South Korea. The first of the South Korean KSNP reactors is about half complete.
Nucleonics Week 27/11/03.

CANADA

Further Ontario reactor restarts
Bruce unit 4, a 769 MWe Candu reactor, has now been connected to the Ontario grid after being laid up for almost six years and refurbished. Bruce Power plans to bring unit 3 back on line by the end of the year - both being well behind schedule. There are no plans to restart units 1 & 2.
Nucleonics Week 9/10/03, media 27/11/03.

Nuclear co-operation with China
Atomic Energy of Canada Ltd (AECL) has signed an agreement with the China National Nuclear Corporation (CNNC) for continued nuclear co-operation. As well as ongoing technical support for the two 700 MWe Candu-6 reactors at Qinshan commissioned recently, the agreement covers assessing the potential of Candu reactors to utilise spent fuel from light-water reactors and also thorium, and helping sell Candu technology in east Asia.
Nuclear Canada 24/10/03.

AUSTRALIA

Australian uranium production edges up
Olympic Dam production in the September quarter was the highest for two years at 897 tonnes U3O8 (906 t UOC, 760 tU), and is expected to increase further. ERA production from Ranger was 1085 tonnes U3O8 (920 tU) drummed, maintaining YTD production well ahead of 2002's.
WMC 15/10/03, ERA 17/10/03.

Australian Senate committee report
A Senate reference committee during 2002 looked at regulation of the Ranger, Jabiluka, Beverley and Honeymoon uranium mines, though two of these are not yet in production. Olympic Dam was excluded. Their long-delayed report said that changes in regulation are needed to protect the environment and people from damage. Government Senators dissenting said that "the performance of existing monitoring and reporting regimes and regulations has been adequate". They said the inquiry had been manipulated by opponents of uranium mining and the report reflected this, despite the fact that no evidence of any detrimental effect to the environment outside the mining leases had been credibly advanced. The negativity is particularly evident in relation to in situ leach (ISL) mining, which the majority report says "should not be permitted" until yet more studies are done. The South Australian government has responded by commissioning the CSIRO to undertake another study on acid ISL.

All members agreed that proper monitoring was vital and that stakeholder communication needed to be improved - already acted on this year by ERA and Heathgate. Beyond that, the 357-page report provides a lot of detail on the regulation of the four sites, though recommendations amount largely to nitpicking and an attempt to impose on uranium mining very much more regulation than any other industry with comparable environmental or health hazards.
Report 14/10/03, Age 17/10/03.

ERA head office goes bush
Energy Resources of Australia has announced that it is relocating its head office from Sydney to Darwin in the Northern Territory, close to its Ranger mine and Jabiluka prospect. The Gundjehmi Aboriginal Corporation, representing traditional landowners involved with both sites, welcomed the move. ERA will be the first major listed company with a Darwin base.
ERA 7/10/03, Australian 8/10/03.

ANSTO ships spent fuel
The Australian Nuclear Science & Technology Organisation has shipped 344 spent fuel elements from its Lucas Heights research reactor for reprocessing by Cogema in France. Each fuel element starts with 283 grams of high-enriched uranium. This is the sixth such shipment, in several 28-tonne 'Type B' casks. It represents about nine years of reactor operation resulting in some four million patient treatments with nuclear medicine, apart from other uses.
ANSTO 27/10/03.

New wind farms
Near Esperance in the remote south of WA, the new Nine-Mile Beach 3.6 MWe wind farm has opened. The A$ 10.6 million (US$ 7.4 million) cost of the six turbines and their integration with the local 17 MWe diesel power station was subsidised, with nearly half the cost being paid by the Australian Greenhouse Office under a program to displace diesel with renewables. The plant cost US$ 2055/kW and is expected to operate at 30% load factor.

In Victoria the A$ 76 million (US$ 53 million) 52.5 MWe Challicum Hills wind farm near Ararat with 35 turbines of 1.5 MWe opened in November, as did the A$ 65 million (US$ 45.5 million) 34.5 MWe Starfish Hill coastal wind farm in SA, south of Adelaide, with 23 of the same turbines and a 25 km link to the main grid.
Platts Power in Asia 13 & 27/11/03, Western Power Aug 2003, AWEA web site 28/11/03.

INTERNATIONAL

Areva takes half stake in centrifuges
Areva has agreed to buy a 50% stake in Urenco's Enrichment Technology Company (ETC), which comprises all its centrifuge R&D, design and manufacturing activities. The joint venture deal, further to an October 2002 memorandum of understanding, is subject to UK, Dutch, German and French government approvals. It will enable Areva to use Urenco/ETC technology to replace its 10.8 million SWU/yr gas diffusion enrichment plant at Tricastin in France. This will remain a (larger) competitor to Urenco's plants in UK, Netherlands and Germany.

The first stages of the new EUR 3 billion plant are expected to begin operating in 2007, and will eventually free up some 3000 MWe of Tricastin nuclear power plant's capacity for the French grid - over 20 billion kWh/yr (@ 4 c/kWh this is EUR 800 million/yr). The new enrichment plant investment is equivalent to buying new power capacity @ EUR 1000/kW.
Urenco-Areva 26/11/03, Platts 26/11/03

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REVIEW

Nuclear Energy Today, OECD Nuclear Energy Agency, 112 pages, EUR21, 2003. ISBN 92 64 10328 7.

This is an excellent book covering the whole topic of nuclear energy for policy makers and other laymen. It deals well with wastes, safety, radiation and sustainable development as well as more briefly with economics, international law & non-proliferation. It is well illustrated with both photos and diagrams, and has a 12-page glossary. References are heavily skewed to OECD and IAEA.. The blurb sets the context: "Nuclear energy is a complex technology with serious issues and a controversial past. Yet it also has the potential to provide considerable benefits." Its claim to be authoritative and factual is well borne out by the content.
IHL


Briefing & mines papers updated in last two months include:

Reactor table
Economics of nuclear power
Small nuclear power reactors
Safeguards to prevent nuclear proliferation
Transport of radioactive materials
Australia's electricity
Safety of nuclear power reactors
US nuclear power industry
Nuclear power in Russia
Nuclear power in Ukraine
Nuclear power in China
Germany's nuclear energy
French nuclear power industry
Nuclear power in South Korea
California's electricity
Canada's U production
Uranium markets
Asia's nuclear energy growth
International nuclear waste disposal
Thorium
Hydrogen economy
Uranium exploration in Australia (UIC mines paper)


Published Uranium Prices


Ux: 24 November: US$ 13.75/lb U3O8, (US$ 35.67/kgU)

See also Ux Consulting graphs

World reactor changes
Canada: Bruce-4 @ 769 MWe restarted from being laid-up
Canada: move 3x515 MWe Pickering to "planned"
Germany: Stade 630 MWe closed (total now 20609 MWe).
USA: uprate Hatch by 37 MWe
USA: uprate Palo Verde 2 by 55 MWe


URANIUM INFORMATION CENTRE Ltd. A.B.N. 30 005 503 828

GPO Box 1649N, Melbourne 3001, Australia

phone (03) 9629 7744

e-mail: uic@mpx.com.au

fax (03) 9629 7207


ISSN 1326-4788
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