AUA NEWSLETTER # 6, 2007

November - December 2007


ISSUE HIGHLIGHTS


Low-profile reactor developments - the small to medium sized plant

With much of the limelight regarding new nuclear power plants being on large advanced reactors, with their economies of scale, the wide scope for smaller plants has received less attention. However, of the 30 or more countries that are moving towards implementing nuclear power programs, most are likely to be looking initially for units under 1000 MWe and some for units of less than half that.

Of course, there are many plants under 1000 MWe now in operation, even if their replacements tend to be larger. But some smaller ones are on offer now or likely to be available in the next few years.

In the 500-700 MWe category there are several, including Westinghouse AP600 with US Design Certification and the Canadian Candu-6, being built in Romania. China is building two CNP-600 units at Qinshan, but does not plan any more of them.

In the 250-500 MWe category (if all output is electric) there are a few designs pending, but nothing immediately on offer.

One that has received some publicity is IRIS, being developed by an international team led by Westinghouse in the USA. IRIS is an advanced 3rd generation modular 335 MWe pressurised water reactor (PWR) with integral steam generators and primary coolant system all within the pressure vessel. US design certification is at pre-application stage with a view to final Design Approval by 2012 and deployment by 2015-2017.

Russia's VBER-300 PWR is a 295-325 MWe unit designed by OKBM from naval power plants and now being developed as a land-based unit with Kazatomprom, with a view to exports. The first two units will be built in southwest Kazakhstan by a Russian-Kazakh joint venture.

Another Russian reactor in this class is the VK-300 boiling water reactor being developed specifically for cogeneration of both power and district heating or heat for desalination (150 MWe plus 1675 GJ/hr) by NIKIET. It has evolved from the VK-50 BWR at Dimitrovgrad, but uses standard components from larger reactors wherever possible. In September 2007 it was announced that six would be built at Kola and at Primorskaya in Russia's far east, to start operating 2017-20.

Technicatome (Areva) in France has developed the NP-300 PWR from submarine power plants and aimed it at export markets for power, heat and desalination. It has passive safety systems and can be built for applications of 100 to 300 MWe.

In the 100-300 MWe category there are a number of designs, both conventional PWR and also high-temperature gas-cooled reactors (HTR). None of these are being built yet.

Argentina's CAREM being developed by CNEA and INVAP in Argentina as a modular 27 MWe simplified PWR with integral steam generators designed to be used for electricity generation or for water desalination.

On a larger scale South Korea's SMART is a 100 MWe PWR with integral steam generators and advanced safety features. It is designed for generating electricity and/or thermal applications such as seawater desalination.

Then there are three high-temperature gas-cooled reactors capable of being used for power generation but with much of the development impetus being for thermochemical production of hydrogen. The first two have fuel as billiard ball-sized pebbles capable of withstanding very high temperatures, and aim for a step change in safety, economics and proliferation resistance.

China's 200 MWe HTR-PM is based on a well-tested small prototype and a two-module plant is due to start construction at Shidaowan in Shandong province in 2009. It will use the conventional steam cycle to generate power. Start-up is scheduled for 2013. After the demonstration plant a power station with 18 modules is envisaged.

Very similar to this is South Africa's Pebble Bed Modular Reactor (PBMR) being developed by a consortium led by the utility Eskom. Production units will be 165 MWe. The PBMR will have a direct-cycle gas turbine generator driven by the hot helium. The PBMR Demonstration unit is expected to start construction at Koeberg in 2009 and achieve criticality in 2013.

A US design, the Modular Helium Reactor (GT-MHR), is being developed in Russia and in its electrical application each unit would directly drive a gas turbine giving 280 MWe.

Modular construction

The IRIS developers have outlined the economic case for modular construction of their design (about 330 MWe), and the argument applies similarly to other smaller units. They point out that IRIS with its size and simple design is ideally suited for modular construction. The economy of scale is replaced here with the economy of serial production of many small and simple components and prefabricated sections. They expect that construction of the first IRIS unit will be completed in three years, with subsequent reduction to only two years.

Site layouts have been developed with multiple single units or multiple twin units. In each case, units will be constructed so that there is physical separation sufficient to allow construction of the next unit while the previous one is operating and generating revenue. In spite of this separation, the plant footprint can be very compact so that a site with three IRIS single modules providing 1000 MWe is similar or smaller in size than one with a comparable total power single unit.

Eventually IRIS is expected to have a capital cost and production cost comparable with larger plants. But any small unit such as this will potentially have a funding profile and flexibility otherwise impossible with larger plants. As one module is finished and starts producing electricity, it will generate positive cash flow for the next module to be built. Westinghouse estimates that 1000 MWe delivered by three IRIS units built at three year intervals financed at 10% for ten years require a maximum negative cash flow less than $700 million (compared with about three times that for a single 1000 MWe unit). For developed countries small modular units offer the opportunity of building as necessary, for developing countries it may be the only option, because their electric grids cannot take 1000+ MWe single units.

World market

One of the aspects of the Global Nuclear Energy Partnership program is international deployment of appropriately sized reactors having desirable design and operational characteristics such as improved economics, greater safety margins, longer operating cycles with refueling intervals of up to three years, better proliferation resistance, and sustainability. Several of the above designs are likely to qualify.

IRIS itself is being developed by an international team of 20 organizations from ten countries (Brazil, Croatia, Italy, Japan, Lithuania, Mexico, Russia, Spain, UK, USA), on four continents. This is also an indication of how reactor development is proceeding.


USA

First full US licence applications for new plants
NRG Energy and South Texas Project Nuclear Operating Company have filed the first full application for a construction and operating licence (COL) for a new nuclear power plant. The application with the Nuclear Regulatory Commission (NRC) is for two 1358 MWe Advanced Boiling Water Reactors to come on line in 2014-15 at the South Texas site, which already has two operating reactors. The ABWR was given final design certification by NRC in 1997 and four of them have been operating in Japan. A partial COL application was lodged by Unistar Nuclear Energy for a 1600 MWe US EPR at Calvert Cliffs, Maryland, in July.

A month later Tennessee Valley Authority lodged a COL application for two new nuclear reactors at its Bellefonte site in Alabama. It has applied as part of the NuStart consortium and this will be the reference application for the 1100 MWe Westinghouse AP1000 design, which was given design certification by the Nuclear Regulatory Commission in 2005 and is being built in China. NuStart is also helping Dominion prepare the reference COL application for the GE-Hitachi ESBWR design to be built at North Anna, Va.

Three more COL applications are expected by the end of the year, and many more in 2008.
NRG 24/9/07, WNN 26/7/07, TVA 30/10/07.

Third Early Site Permit in USA
The US Nuclear Regulatory Commission has approved an Early Site Permit for Dominion's North Anna site in Virginia. This confirms in principle that the site - with two large pressurised water reactors already - is suitable for new nuclear power construction. An application to build a GE-Hitachi ESBWR reactor of 1550 MWe there is expected by end of the year.
Dominion 20/11/07.

Utility support for laser enrichment
The two largest US nuclear utilities, Exelon and Entergy, have signed letters of intent to contract for uranium enrichment services from GE-Hitachi Nuclear Energy (GEH). The utilities may also provide GEH with facility licensing and public acceptance support if needed for development of a commercial-scale Global Laser Enrichment (GLE) plant, which the NRC expects an application for by October 2008. GEH is developing the Australian SILEX technology, now known as GLE, in the USA and has begun preparing a GLE test loop at Global Nuclear Fuel's Wilmington, North Carolina fuel fabrication facility. GNF is a partnership of GE, Toshiba, and Hitachi. Before moving ahead with full-scale production plans, GEH will first evaluate results of the testing, select a location for the proposed commercial plant and obtain a license to build and operate it. Site selection and commercial licensing are now under way with a view to start-up date of 2012, with capacity of 3.5 to 6 million separative work units (SWU).
GEH 3/10/07, Silex 4/10/07.

GE reactor design gets green tick
General Electric's ESBWR advanced nuclear reactor design has received "ecomagination" certification, joining a broad range of products and services independently certified as ecologically and economically sound, including wind, solar, and coal gasification technologies. Each of the "green" energy technologies was assessed by GreenOrder, an environmental consulting firm based in New York specialising in sustainable business practices. The criteria were both environmental and technical, and the process took two years - to align with timing for final design submission to the Nuclear Regulatory Commission. It corresponds to independently-certified Environmental Product Declarations in Sweden and product stewardship endeavours more widely as an industry initiative making the running in providing environmental solutions. GE launched "ecomagination" in 2005 to express its corporate commitment to cleaner energy technologies. The 1520 MWe ESBWR is the first nuclear product to be certified thus.
GE 12/11/07, Fortune 28/6/07.

US Academies urge moderation on GNEP The National Research Council of the National Academies has urged the US government to focus on building new third-generation reactors rather than being too ambitious in accelerating development of reprocessing and fast reactor facilities under the Global Nuclear Energy Partnership (GNEP). However, it does support the move to a closed fuel cycle. Their study was sponsored by the Department of Energy to evaluate and prioritise GNEP, near-term reactor deployment, Generation IV reactor development, the Nuclear Hydrogen program and the Idaho National Laboratory.

The report said that while R&D on reprocessing should continue, DOE should not commit to major demonstration or deployment of the technology until or unless there is clear reason to do so. Progress on the more immediate task of deploying new reactors in the USA has been slow, and this needs to be addressed with better funding. Generation IV reactors and the follow-on into nuclear hydrogen production also needed fuller funding.
National Academies 29/10/07.

Contract for new GNEP technology
The US Department of Energy has awarded $16 million to four industry consortia for studies to progress the Global Nuclear Energy Partnership (GNEP). The largest share of this, $5.6 million, went to the International Nuclear Recycling Alliance (INRA) led by Areva and including Mitsubishi Heavy Industries (MHI), Japan Nuclear Fuel Ltd (JNFL), Battelle, BWX Technologies and Washington Group International. INRA was contracted to provide three major studies: technology development roadmaps analyzing the technology needed to achieve GNEP goals, business plans for the development and commercialization of the advanced GNEP technologies and facilities, and conceptual design studies for the fuel recycling centre and advanced recycling reactor. Areva and JNFL will focus on the reprocessing plant which will not separate pure plutonium, and MHI on the fast reactor which will burn actinides. These are the two main technological innovations involved with GNEP. INRA appears to have materialized out of September agreement between Areva and JNFL to collaborate on reprocessing.
WNN 2/10/07.

US loan guarantees approved
The US Department of Energy has announced that it will guarantee the full amount of loans covering up to 80% of the cost of new clean energy projects including advanced nuclear power plants under the 2005 Energy Policy Act. The first round of loan guarantees will go to renewable energy and advanced gas (eg IGCC) projects, those for nuclear still need to be authorised by Congress.
DOE 4/10/07.

$45 billion Texas utility acquisition completed
The private equity buyout of TXU Corporation has been completed. TXU is now Energy Future Holdings Corp which will become three operations: TXU Energy for retail, Luminant for power generation and Oncor for transmission and distribution. Luminant will take over plans to build two new 1700 MWe Mitsubishi US-APWR reactors at Comanche Peak in Texas and possibly others as well. A construction and operating licence (COL) application is expected to be lodged for these in July. Plans for eight coal-fired plants were scrapped earlier in the year. Environment groups have supported the buyout with its changed policies, and a new director who is chairman of one such group "will lead the effort to make climate stewardship central to corporate policies".
TXU 10/10/07.

US private equity proposal for nuclear plant
A new private equity group - Transition Power Developments - is proposing to spend $100 million obtaining a licence to build a 1500 MWe nuclear plant in Utah. It has contracted for 37 GL/yr water rights, comfortably more than necessary for cooling it, from Lake Powell.
WNN 18/10/07.

US uranium mining developments
While many closed and abandoned US uranium mines are being reopened, the Nuclear Regulatory Commission has received its first application since 1988 to open a new mine. Energy Metals Corp, now owned by Uranium One, plans to bring the small Moore Ranch ISL mine in Wyoming into production in 2009.

Texas-based Uranium Resources Inc has agreed to buy Rio Algom Mining, with uranium properties and a licensed mill site plus water rights at Ambrosia Lake in New Mexico, where it plans to construct a new hard rock mill to serve the Grants mineral belt. URI will have some 43,000 tU resources in New Mexico. Vendor BHP Billiton will be paid $110 million plus $16.5 million contingent upon regulatory approval.
Platts 4/10/07, WNN 15/10/07.

US oil-gas group urges nuclear development
The National Petroleum Council (which advises the US Secretary of Energy) has said that all economic forms of energy will be needed in the USA and in particular nuclear power will need to play an expanded role if constraints are applied to CO2 emissions. It called for $2 billion in funding over the next ten years for demonstration of advanced nuclear facilities and notes that "maintaining a viable nuclear energy option will increase policy choices in future carbon-constrained circumstances."
WNN 17/10/07.

EUROPE

Nuclear energy agreed "indispensable" in EU
Members of the European Parliament have voted overwhelmingly in favour of a report stating that nuclear energy is indispensable if the EU is to meet its basic energy needs in the medium term. It is the Parliament's first explicit endorsement of nuclear power as Europe's largest carbon-free energy source, providing one third of the electricity. There were 509 votes for and only 153 against the resolution, in the context of Europe relying on imports for some two thirds of its total energy needs to 2030. Any "renunciation of nuclear power will make it impossible to achieve the objectives set regarding reductions in greenhouse gas emissions and the combating of climate change".

In November a cross-party group of 56 Members of the European Parliament signed a declaration supporting the central role of nuclear power, complemented by other low-carbon technologies, in the EU's future energy economy. It called for "the optimal use of existing nuclear capacity and the building of new power plants to help meet future energy demand." Nuclear had a key role in meeting "the combined challenges of security of supply, CO2 reductions and delivery of electricity at competitive prices."

Earlier, the head of the European Commission's (EC) Transport and Energy directorate said that nuclear power will be a key part of the future energy mix if the EU's ambitious 2020 carbon dioxide reduction targets are to be met. Departing from the traditional EC reticence on nuclear power, he described nuclear as one of three legs - along with "clean" fossil fuels and eventually carbon sequestration and storage - supporting future CO2-free energy production in the EU. Renewable energy use alone would struggle to help reduce carbon emissions, while carbon capture and storage would not be viable in time to help meet emissions reduction targets, and would be very expensive. Other high-ranking EU commissioners have recently spoken out in favour of nuclear energy. The EU Emissions Trading Scheme for carbon dioxide is now trading December 2008 allowances at over EUR22 per tonne, which translates into a cost burden on coal-fired plant of more than 2 cents/kWh.
WNN 9 & 25/10/07, Foratom 22/11/07.

Russian nuclear-aluminium smelter plan
The world's biggest aluminium smelter is planned for Russia's Saratov region, complete with two new nuclear reactors to power it, in a $7 billion project. The existing Balakovo nuclear power plant of four 950 MWe reactors would be expanded with two more, serving a 1.05 million tonne per year aluminium smelter to be built nearby. This would require about 15 billion kWh/yr - a little over one third of the output of the expanded power plant. Aluminium smelting is energy-intensive and requires reliable low-cost electricity to be competitive. Increasingly it is also carbon-constrained - this smelter will emit about 1.7 million tonnes of CO2 per year just from anode consumption.

Rusal has announced an agreement with the regional government which will become effective when the nuclear plant expansion is approved by Rosatom. Balakovo units 5 & 6 have been listed as prospective for some time but were dropped off the latest Rosatom plan for completing 26 new power reactors by 2020 as they are low priority for UES grid supply. Balakovo is on the Volga River, 800 km SE of Moscow.
WNN 9/10/07.

Russian plutonium disposition confirmed
The USA and Russia have signed an agreement confirming plans for disposition of 34 tonnes of Russian weapons plutonium as mixed oxide (MOX) fuel for two fast reactors at Beloyarsk. Setting this project up, notably the fuel fabrication plant required, will be funded by $400 million from USA. Also the two countries will continue cooperation on a US high-temperature gas-cooled reactor design which has potential for burning plutonium.
DOE 19/11/07.

New Romanian reactor in commercial operation
Cernavoda unit 2 has entered commercial operation, being handed over by its multinational project team. Final bids for completing units 3 & 4 at the plant are due later in October.
SNN 5/10/07.

Finnish industry clubs together in nuclear proposal
The ownership base of Fennovoima has expanded from five to over 60 as electricity consumers seek to insure against future energy cost blowouts. All co-owners will be entitled to a pro-rata share of output at cost from the proposed new nuclear power plant and will not have to buy in a wholesale market influenced by future gas prices.

Fennovoima shares are now held 66% by 62 industry, trade, service and regional energy companies, and 34% by EOn. Industry heavyweights Outokumpu and Boliden were among the founders of the joint venture which aims to construct a large nuclear plant to begin operation about 2016. Environmental impact assessments are being conducted at three possible sites.
WNN 30/10/07.

Italy joins GNEP
Italy has become the 17th member of the Global Nuclear Energy Partnership (GNEP) which is developing new nuclear fuel cycle technologies to improve proliferation resistance while increasing recycling and reducing wastes.

As the world's largest net importer of electricity, most of it nuclear power from France which contributes significantly to EdF's profit, Italy has had much incentive to reconsider its hasty decision in 1987 to phase out nuclear power. Its power is the most expensive in any industrialised country, at EUR 14c/kWh wholesale. Its main electric utility ENEL has meanwhile taken a major role in nuclear power development elsewhere in Europe, and an earlier agreement for it to take 200 MWe (12%) of the output from EdF's new Flamanville nuclear plant in France is being revived. A wide range of political opinion now supports rebuilding the country's domestic nuclear capacity.
WNN 30/10/07, DOE 13/11/07.

EU forum to develop nuclear role
Continuing a series of initiatives consolidating the central role of nuclear power in the EU, a new organization to focus and guide EU nuclear research and technology development has been launched by the European Commission with wide stakeholder representation. The Sustainable Nuclear Energy Technology Platform (SNETP) will produce a strategic research agenda and a deployment strategy extending from current reactors to Generations IV types including fast reactors and advanced fuel cycles. High-temperature industrial heat applications such as hydrogen production are also included. Establishment of SNETP acknowledges the key role of nuclear energy in the EU's future, economically, environmentally and for energy security.
WNN 24/9/07, Foratom 24/9/07, www.snetp.eu

EAST ASIA

Japan to develop its own advanced reactors
Despite being a member of the Generation IV International Forum (GIF), Japan's government with industry and utilities is taking the initiative in developing new light water reactor designs for deployment about 2020. These will have at least 5% enriched fuel and an 80-year operating life. The project is expected to cost $520 million over eight years to develop one BWR and one PWR design, each of 1700-1800 MWe.
JAIF 12/9/07.

Japan starts up vitrification plant
Active testing has commenced at the new Rokkasho vitrification plant, with separated high-level wastes being combined with borosilicate glass. The plant takes wastes from the adjacent reprocessing plant, after uranium and plutonium are recovered from used fuel for recycle, leaving 3% of the used fuel as high-level radioactive waste. Hitherto, reprocessing and associated activities for Japanese utilities have been undertaken on contract in Europe.
WNN 6/11/07.

INES rating for 'quaked Japan plants
Japan's Nuclear and Industrial Safety Agency has released its assessment of the safety significance of earthquake damage to the Kashiwazaki Kariwa nuclear power plant in July. The worst of the damage rated zero on the International Nuclear Event Scale (INES), having no safety significance. Other damage was deemed not relevant to nuclear safety. The seven main reactor units themselves are still being checked, but so far appear undamaged.
JAIF 13/11/07.

China signs for two more Russian reactors
Jiangsu Nuclear Power Corporation (50% owned by CNNC) has signed an agreement with Russia's Atomstroyexport for the construction of Tianwan units 3 & 4. These will be 1060 MWe AES-91 reactors (VVER-1000), the same as units 1 & 2 which are now in commercial operation. A preliminary agreement for them was in October 2006 as phase 2 at Tianwan (Lianyungang) in Jiangsu province.
Platts 6/11/07.

China plan to boost new reactors
China expects large numbers of third-generation PWR reactors derived from foreign technology to be built from about 2016, after experience is gained with the initial Sanmen and Haiyang AP1000 plants. A report now suggests that the Westinghouse AP1000 will be boosted in power, as Shanghai Nuclear Engineering Research & Design Institute (SNERDI) takes over much of the design work. The agreement with Westinghouse is for the company to transfer technology over the first four units so that the State Nuclear Power Technology Corporation (SNPTC) can build the following ones on its own. However, it would not be able to export the units unless the design was substantially modified by SNERDI.
Nucleonics Week 18/10/07.

East Asia summit affirms nuclear power
Leaders of 16 Asian nations including China, India, Japan, South Korea and Australia have pledged firm action on climate change, supporting initiatives under UN auspices. They also agreed to cooperate on the "development of civilian nuclear power" in line with international safeguards and standards.
Thompson 21/11/07.

CENTRAL & SOUTH ASIA, AFRICA, S. AMERICA

China-Kazakh links strengthened
In September two agreements were signed in Beijing between Kazatomprom and China Guangdong Nuclear Power Group (CGNPC) on Chinese participation in Kazakh uranium mining joint ventures and on Kazatomprom investment in China's nuclear power industry. These came in the context of an earlier strategic cooperation agreement and one on uranium supply and fuel fabrication. This is a major strategic arrangement for both companies, with Kazatomprom to become the main uranium and nuclear fuel supplier to CGNPC (accounting for a large share of the new reactors being built in China). A framework strategic cooperation agreement was then signed with China National Nuclear Corporation (CNNC).
Kazatomprom 12/10/07.

Kazakh acid problems impact production
A fire at a sulfuric acid production plant has led to shortages in Kazakhstan, and due to the delayed start-up of a new plant, rationing is expected to continue until at least mid 2008. Extra supplies are being sought from Uzbekistan now, and from Russia in 2008. KazAtomProm said the supply situation should be improved by the end of the year but uranium production forecasts into 2008 are affected. Uranium One has revised its 2008 production downwards by 1080 tU, which it says is "primarily due to the acid shortage" for its South Inkai and Kharasan projects (70% and 30% owned respectively) which are just starting up. It anticipates that the shortage may be resolved "in the latter half of 2008".

A new 1.2 million t/yr Canadian acid plant feeding from the Kazakhmys copper smelter in Balkhash is expected to start production in May 2008, financed by an EBRD loan to abate sulfur dioxide emissions from copper smelting. Another new acid plant of 0.5 million t/yr capacity is now to be built at Zhanakorgan, next to the Kharasan mines in the Western (#6) mining group region, to serve those mines. It will burn 170,000 t/yr of solid sulfur derived from oil and gas production by Tengizhevroil and will support 5000 tU/yr production from 2010. Due to relatively high levels of carbonate in the orebodies, Kazakh in situ leach (ISL) mining uses very much more acid per unit of production that that in Australia - 70-80 kg acid/kgU (comprising 15-20% of the operating expense), compared with Beverley at around 3 kg/kgU.
Uranium One 30/10/07, Kazatomprom 2, 13 & 15/11/07, WNN 2/11/07, UEL.

Japan embarks on Uzbek venture
Japan has secured a foothold in Uzbekistan with a view to obtaining supplies of its uranium. Uzbekistan has about 2% of the world's known uranium resources and currently markets its production (2260 tU in 2006, from ISL mining) through Nukem. In September 2006 a Japan-Uzbek intergovernmental agreement was aimed at financing Uzbek uranium development and now Itochu Corporation has agreed with Navoi Mining to develop technology to mine and mill the black shales, particularly the Rudnoye deposit, and to take about 300 tU/yr from 2007. A 50-50 joint venture is envisaged.
Ux weekly 21/10/07.

Indian trade deal revived
After blocking progress for some time, India's communist parties have approved the government starting talks with the International Atomic Energy Agency (IAEA) on a specific comprehensive safeguards agreement to cover 14 reactors. This is necessary for the proposed civilian nuclear power deal with the USA to proceed. The move has revived hopes for the bilateral deal. The communist parties - one as coalition partner - have opposed the bilateral on the grounds that its conditions would give the USA influence over Indian foreign policy, and had threatened to withdraw support from the coalition government if it were to proceed. IAEA talks are now under way.

Failure to complete the civilian nuclear agreement between the USA and India, allowing India into the mainstream of global nuclear commerce, would dampen India's expansion of nuclear power and increase the reliance on coal to meet its 6.3% annual growth in electricity demand. Reaching the 2020 target of 20 GWe of nuclear capacity is likely unattainable, or at least unsustainable, without imported uranium. WNN 19/11/07, IAEA 21/11/07.

AUSTRALIA

Olympic Dam uranium resource boost
In the course of identifying a 77% increase in mineral resources, BHP Billiton has defined a 27% increase in uranium resources, to 2.24 million tonnes of uranium oxide (1.9 MtU) at the Olympic Dam mine in South Australia. Known copper has increased 38% to 67 million tonnes. The new figures are based on 2095 km of drilling over the last two years and confirm the deposit as the world's largest for uranium. It covers an area of over 6 km by 3.5 km, is up to 2 km deep and remains open laterally and at depth as the drilling program continues. A preliminary feasibility study on tripling production is due for completion in 2008, giving 15,000 tonnes per year of uranium oxide (12,700 tU) - 2006-07 production was 3474 t U3O8 (2946 tU).
BHPB Annual Report 27/9/07.

Ranger mine life extended
Energy Resources of Australia has announced that the mine life of the Ranger pit will be extended to 2012 in a A$ 57 million project. Ore reserves will be increased slightly, by 4857 tonnes U3O8. Processing will extend to 2020, as before.
ERA 27/9/07

Australian uranium resources updated
Geoscience Australia has released its annual update of Australia's Identified Mineral Resources, confirming large increases for uranium above 2005 Red Book figures - 34% for the main economic resource categories. Australia's Economically Demonstrated Resources (EDR = Reasonably Assured Resources to $80/kgU) of uranium at the end of 2006 were 714,000 tonnes (tU), but during this year, exploration and development drilling resulted in increases at several locations to 953,000 tU total. If Inferred Resources are added, the total comes to 1.53 million tonnes recoverable at less than US$ 80/kgU, as of August 2007. This compares with the 2005 Red Book figure of 1.143 million tU at end of 2004.

Australia had 27% of the world's uranium (RAR to $80/kgU) at end of 2006. (No estimate is possible for August 2007 in the absence of corresponding data internationally.)

About 96% of Australia's EDR are within six deposits: Olympic Dam (the world's largest known uranium deposit), Ranger, Jabiluka, Koongarra, Kintyre and Yeelirrie.

The new report makes a distinction between EDR and Accessible EDR, to reflect the fact that state government policies in Queensland and Western Australia plus aboriginal policies in the Northern Territory currently make 21% of the EDR inaccessible for mining. Despite these restrictive policies and perhaps in anticipation of their disappearance, uranium exploration gathered pace during 2006, with more than 200 companies professing an interest, compared with 34 the previous year. Expenditure almost doubled, to A$ 80.7 million and has continued to increase since, to A$ 114 million in 2006-07.
Australia's Identified Mineral Resources 2007. (Red Book is: OECD NEA & IAEA, Uranium 2005: Resources, Production and Demand)

Election maintains positive uranium outlook
The change of government in Australia to the Australian Labor Party is not expected to change the country's uranium mining and exploration policies, or investment climate for uranium. Two states remain opposed to uranium mining, and the Labor Party in government, having made a very significant change in its stance on uranium mining, will now be under pressure to deliver the promises that are, in effect, contained in the new policy, ie uranium mining in all States.

Australia triples clean energy target
In a move that asserts politics over policy, the Australian government announced a new Clean Energy Target for power generation of 30,000 GWh from low-emission sources by 2020, effectively tripling the 9500 GWh Mandated Renewable Energy Target (MRET). MRET excludes large hydro and is now within reach, borne by consumer subsidy. This new policy would broaden the technology options to any that produce less than 200 grams of CO2 per kWh, including nuclear power and carbon capture & storage (CCS) from coal burning, though neither is likely to be contributing by 2020. The Labor Party then trumped this by increasing the MRET to 45,000 GWh per year by 2020, to effect its 20% from renewables by 2020 target. (Currently some 16,000 GWh is supplied by large hydro and about 4270 GWh by wind, solar and other means qualifying for certification under MRET.)

At present some 80% of electricity is from burning black coal and lignite, making Australians the world's worst polluters from power generation. A Washington thinktank, the Centre for Global Development, quoted Australian annual CO2 power sector emissions as 11 tonnes per head, followed by the USA on 9 tonnes.

However, the pre-election decisions are contrary to the recommendations of the government's Emissions Trading Taskforce, and the Business Council of Australia also pointed to the need for an effective economic instrument such as emissions trading, rather than more and ongoing subsidies. The Energy Supply Association said that a national emissions trading scheme was needed and the new target did nothing to address the critical question of reducing emissions from base-load power, and would simply promote more wind capacity which would raise costs for consumers.
PM 23/9/07, ESAA 23/9/07, Australian 29/9/07, ALP 30/10/07.

INTERNATIONAL

World Energy Outlook surges The OECD International Energy Agency's annual World Energy Outlook has highlighted the global challenge of energy demand growth in China and India through to 2030. In particular, "the resurgence of coal, driven primarily by power-sector demand in China and India" due to its price competitiveness, will boost world CO2 emissions. Four fifths of the increase in coal use to 2030 will be in those two countries. China needs to build 1300 GWe of generating capacity, which will absorb three quarters of the projected $3700 billion energy infrastructure outlay. India will nearly triple its coal use by 2030, mostly for electricity, as access to electricity rises from 62% to 96% of the population.

The report said that government action in line with policy rhetoric must focus on curbing the rapid growth in CO2 emissions from power generation, through energy efficiency and conservation plus a major contribution from nuclear power and also renewables. Carbon capture and storage is a longer term prospect. There needs to be much more IEA (OECD) policy cooperation with China and India, for mutual benefit.

The International Atomic Energy Agency has also released its electricity projections to 2030. The main scenario adds "reasonable and promising" nuclear power plans to what is extant or being built, less retirements, giving 691 GWe in 2030 (cf 372 GWe now), producing 5141 TWh then - almost twice present output.
IAEA 23/10/07, IEA 7/11/07.

Toshiba to push mini reactor
Using its Westinghouse subsidiary as liaison with the US Nuclear Regulatory Commission (NRC), Toshiba is pushing forward with plans to licence its small 4S nuclear power reactor. This is a 10 MWe unit designed for remote communities and is now likely to be submitted for design certification in 2009. This would allow a construction and operating licence application about 2012 from a town such as Galena in Alaska, which has been considering it for some time. The life of the reactor and its fuel is 30 years, and it requires virtually no operator input over this time. Further pre-application meetings with NRC are scheduled in the next few months.

The 4S is a fast reactor using sodium as coolant (with electromagnetic pumps) and has passive safety features, notably negative temperature and void reactivity. The whole unit would be factory-built, transported to site, installed below ground level, and would drive a steam cycle. Steady power output over the core lifetime is achieved by progressively moving upwards an annular reflector around the slender core (0.68m diameter, 2m high) at one millimetre per week.
Nucleonics Week 25/10/07.

UN climate change resolve increases
A UN meeting in New York of 150 nations, 80 of them represented by their head of state or government, has firmed the international resolve to work out practical measures to counter climate change. The summit was chaired by UN Secretary-General Ban Ki-moon.

The Summary for Policy Makers from the Intergovernmental Panel on Climate Change (IPCC) notes nuclear power as a currently available commercial climate change mitigation technology, and advanced nuclear power as an option before 2030. Overall, the IPCC reports greater confidence that the effects of global warming are evident and serious, and that action is needed to limit the consequences of future climate change. The component reports were published earlier in 2007.

A two-week meeting in Bali in December will address what measures are to apply post 2012 under the UNFCCC Kyoto Protocol.
IPCC 17/11/07.

REVIEW

Privatisation and Financial Collapse in the Nuclear Industry - the origins and causes of the British Energy crisis of 2002, by Simon Taylor, 2007, Routledge, 258pp, £80, ISBN 0-415-43175-1

Considering the task of collecting widely scattered background information, particularly that in peoples' memories, this book is a fine piece of research. It describes the evolution of nuclear power generation in the UK, from Calder Hall in the late 1940s and early 1950s to 2006. The lessons from the rise and fall of British Energy(BE) are of particular interest today as the UK considers a new programme of nuclear build.

The history of nuclear generation management in the UK I see in three stages:
1 - Bureaucratic, but coupled with technical understanding, under the CEGB
2 - Technically-knowledgeable and dedicated management, under John Collier, in Nuclear Electric and the early days of British Energy
3 - Non-technical management, seeing only the opportunity for short term profit, with no understanding of the need to technically maintain the assets and the skill base of the business, which consequently led to massive shareholder losses.

The fourth stage is here today, as BE's management struggles to maintain economic targets in the face of evolving ageing difficulties with the AGR reactor fleet, and at the same time seeks partnership with foreign companies in new nuclear build.

The book draws out many lessons to be learned from the UK nuclear story compared with those of other countries. Not the least of these is the need for capable engineers, who understand the nuclear technology, to have a strong voice at Board level in nuclear operating companies.

Bob Hawley, Vice-Chancellor, World Nuclear University and former CEO of British Energy.


Cooling nuclear plants

In Australia 80% of electricity is produced from coal-fired plants, mostly located on coalfields and cooled by evaporating water in cooling towers. About 12% is produced by burning gas. For evaporative cooling, 2.0 to 2.5 litres of fresh water per kWh is required.

An estimated 70% of Australia's 255 billion kWh per year is produced at a water cost of say 2.25 litres/kWh, which means that 400 gigalitres per year is transferred to the atmosphere. This is approximately Melbourne's current (restricted) water usage.

If that amount of power were produced instead by nuclear plants, which would be on the coast (or any other thermal plants using seawater cooling), then it would free up the equivalent of Melbourne's water supply for other uses.



Briefing & mines papers updated in last two months include:

Reactor table
Plans for new reactors worldwide
Nuclear power reactors
Small nuclear power reactors
Fast neutron reactors
Global Nuclear Energy Partnership
Uranium enrichment
Military warheads as source of fuel
Energy subsidies & external costs
Mixed oxide fuel
Synroc wasteform
Thorium
Safeguards to prevent proliferation
Safeguards appendix (Iran, N. Korea)
India, China & NPT
Liability for nuclear accidents
Nuclear energy prospects for Aust.
Australia's electricity
In situ leach mining of uranium

Country papers:
Africa,
Armenia,
Brazil,
Bulgaria,
Canada,
Central Asia (new),
China,
Denmark,
Japan,
India,
Iran (new),
Kazakhstan,
Korea,
Romania,
Russia,
Slovakia,
South Africa,
Sweden,
UK,
Ukraine,
USA,
Emerging nuclear countries
Australia's uranium mines (AUA mines paper)


Published Uranium Prices


19 November US$ 93/lb U3O8, US$ 241/kgU.

See also Ux Consulting graphs

World reactor changes in last two months:
Romania: Cernavoda 2 - 655 MWe commercial
Korea: Shin Kori 2 - 950 MWe construction start June 07


Uranium Information Centre
AUSTRALIAN URANIUM ASSOCIATION Ltd. A.B.N. 30 005 503 828

GPO Box 1649, Melbourne 3001, Australia
phone (03) 8616 0440


ISSN 1326-4788
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