UAE launches nuclear policy
Independently of its Gulf Cooperation Council partners, the United Arab Emirates has published a comprehensive policy on nuclear energy. This projects escalating electricity demand from 15.5 GWe in 2008 to over 40 GWe in 2020, with natural gas supplies sufficient for only half of this. Nuclear power emerged as a proven, competitive option to meet this demand and provide future energy security. Accordingly, "the UAE is establishing a Nuclear Energy Program Implementation Organization as recommended by the IAEA." This implementation organization will set up the Emirates Nuclear Energy Corporation (ENEC) as a public entity, initially funded with $100 million, to evaluate and implement UAE plans.
Secondly, the UAE "will also draft a comprehensive national nuclear law" which establishes a fully independent nuclear regulatory authority. Thirdly, it will "offer joint-venture arrangements to foreign investors for the construction and operation of future nuclear power plants" similar to existing Independent Water and Power Producer structures which are 60% government-owned and 40% by the JV partner(s). Three French companies, Areva, Suez and Total, have already anticipated this in a proposal to build two EPR units at Abu Dhabi. More such proposals are set to follow as trade-off for oil.
Finally, "In lieu of domestic enrichment and reprocessing, the UAE would seek to conclude long-term arrangements Š. for the secure supply of nuclear fuel, as well as Š. if available, the disposal of spent fuel via fuel leasing or other emerging fuel supply arrangements."
UAE white paper April 08.
Cameco and Mitsubishi buy major Australian deposit
Following a bidding process, a major uranium deposit potentially ready for development has been bought from Rio Tinto by a Cameco (70%) and Mitsubishi (30%) joint venture for US$ 495 million. Rio Tinto came close to opening an 1800-2000 t U3O8 per year mine in the mid 1990s but due to low uranium prices put the site on care and maintenance in 1998 and then decommissioned it in 2002. It was put on the market last year. The deal is conditional upon state government approval for the sale, and agreement with the Martu traditional owners, who declared that they "are pleased with the process undertaken by Rio Tinto in the sale" and thanked them for their support to Martu. The tenements include four granted mining leases and four mining lease applications. Kintyre is 1250 km NE of Perth.
Cameco will operate the project. Uranium reserves of 24,000 tonnes U3O8 and inferred resources of 12,000 tonnes at relatively high grades were identified by Rio Tinto in 1988, though these are not claimed as JORC-compliant. The vein-type nature of the orebody makes it possible to use radiometric ore sorting so that the mill feed is effectively very high grade, resulting in low processing costs and a compact treatment plant. However, beyond paying $346.5 million, Cameco is cautious about the resource prospects. It would need to obtain approval from the state's Labor government, which is currently opposed to uranium mines.
Cameco 9/7/08, Rio Tinto & Martu 10/7/08.
US solicits bids for loan guarantees on nuclear construction
The US Department of Energy has invited applications for loan guarantees to support the construction of advanced nuclear power plants (up to $18.5 billion) and uranium enrichment plants (up to $2 billion). Loan guarantees are to encourage the commercial use of new or significantly improved energy technologies and "will enable project developers to bridge the financing gap between pilot and demonstration projects to full commercially viable projects that employ new or significantly improved energy technologies."
On the basis of the 2005 Energy Policy Act DOE announced that it would guarantee the full amount of loans covering up to 80% of the cost of new clean energy projects including advanced nuclear power plants. The loan guarantees are expected to act as a catalyst and reduce financing cost by demonstrating government support, without cost to the taxpayer. Any preliminary approvals issued next year will be conditional upon the applicant receiving a combined construction and operating licence (COL) from the Nuclear Regulatory Commission and these are not expected before 2010.
DOE 30/6/08.
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