Platts - Thursday, September 13, 2007 http://www.platts.com ------------ 14 cases of "illicit trafficking" in nuke materials in 2006: IAEA London (Platts)--13Sep2007 Fourteen incidents of "illicit trafficking" in nuclear materials occurred in 2006, the IAEA said September 11. Documented in the IAEA's Illicit Trafficking Database, the majority of the incidents last year involved sealed radioactive sources, but the country of Georgia reported a February 2006 incident involving the seizure of 79.5 grams of 89% enriched uranium, IAEA said. "Eighty-five incidents occurred in 2006 that involved theft, losses, or misrouting of nuclear or other radioactive materials," it said. In about 73% of cases, "the lost or stolen materials have not been reported recovered," the agency said. Information reported to the database "shows a persistent problem with the illicit trafficking in nuclear and other radioactive materials, thefts, losses, and other unauthorized activities," the IAEA said. The report is online (http://www.iaea.org/NewsCenter/News/2007/itdb.html). ------------ Vietnam, US sign `arrangement' on nuclear cooperation Washington (Platts)--12Sep2007 Vietnam and the US signed an "arrangement" on nuclear cooperation, the DOE's National Nuclear Security Administration announced September 12. Under the arrangement, scientists from two DOE national laboratories -- Lawrence Livermore in California and Oak Ridge in Tennessee -- will collaborate with Vietnamese counterparts in areas such as reactor operations and safety, radiation protection and radioactive waste disposition, NNSA said in a statement. Future collaborations will address nuclear safeguards and regulatory controls, NNSA said. The arrangement will help Vietnam develop nuclear energy "in ways that will reduce potential nuclear proliferation concerns," William Tobey, NNSA's top nonproliferation official, said in the statement. ------------ Spot uranium price rangebound as market waits on auction results Washington (Platts)--11Sep2007 The spot price of uranium has -- for the moment -- stabilized between $85-$90/lb U3O8, according to TradeTech and Ux Consulting. However, that may change as news filters out on the range of bids seen by Texas-based producer Mestena later Tuesday. Mestena is offering up to 300,000 lb U3O8 for sale. Ux, in commentary late Monday, said it appears there is a "notable amount" of uranium available between $90 and $100/lb, indicating that "while there is speculation on the degree of downside pressure on prices at the moment, there is not much expectation on upside pressure." Buyers, said Ux, "do not appear overly anxious." TradeTech, which held its price at $85/lb as of late September 7, said that it appeared that the "gap between what buyers are willing to bid and sellers are willing to offer has narrowed considerably from the gap that has persisted for the past month." The Platts NuclearFuel range for the week was $83-$98/lb U3O8. ------------ TXU says US NRC approves transfer of nuke license to new owners Washington (Platts)--11Sep2007 TXU on Tuesday said the US Nuclear Regulatory Commission had approved its request to transfer the operating license for the company's two-unit, 2,300 MW Commanche Peak nuclear facility 80 miles southwest of Dallas to Texas Energy Futures Holdings. TEFH was formed by a group of investors led by Kohlberg Kravis Roberts & Co. and TPG Capital that plans to take the Dallas-based utility private in a $45 billion buyout. TXU said NRC approval of the license transfer was the final remaining regulatory approval the companies needed to obtain. The merger is expected to close in the fourth quarter, subject to completion of customary closing conditions contained in the merger agreement. Word of the NRC decision comes after TXU shareholders on Friday overwhelmingly approved the buyout. Also last week, the US Federal Energy Regulatory Commission approved portions of the deal over which it has jurisdiction. FERC authorized the transfer of certain assets from TXU to TEFH, the working name of the partnership that is taking TXU private. ------------ Areva and EDF invite UK public comment on EPR design Paris (Platts)--10Sep2007 Areva and Electricite de France opened their EPR design to UK public scrutiny September 10, announcing jointly the launch of a web site presenting the details of the advanced PWR and inviting public comment. Areva and EDF earlier this year submitted the design to the Health and Safety Executive and Environment Agency, seeking a Generic Design Assessment. They are working with several other utilities towards possible construction of one or more EPRs in the UK, most likely at existing nuclear sites in England. Approval to build depends on the outcome of the UK public consultation on new nuclear power plant construction. The design information is posed at http://www.epr-reactor.co.uk/. EDF and Areva said the design submitted for the UK is "based on the EPR plant being built at Flamanville-3" in France "and benefits from the expertise developed during the project." Flamanville-3, for which EDF is owner, project manager and main architect-engineer, is scheduled to be in service in 2012. ------------ TXU shareholders approve $45 billion buyout Washington (Platts)--7Sep2007 TXU shareholders have approved the $45 billion purchase agreement the energy holding company negotiated with a group of investors. More than 340 million shares, or over 74% of the 461 million outstanding shares of TXU Corp., were voted in favor of the agreement during TXU's annual meeting in Dallas, the energy holding company said in a press statement. "Of the shares votes, over 95% voted in favor of the merger," it said. The agreement is with Texas Energy Future Holdings Limited Partnership, which a group of investors led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group formed to facilitate the buyout. The group has supported TXU's plan to build additional reactors at its Comanche Peak plant in Texas. TXU shareholders will be entitled to $69.25 in cash for each share of TXU common stock held when the merger is finalized, which is expected in fourth-quarter 2007, TXU said. ------------ Global nuclear partnership plans September ministerial meeting Washington (Platts)--7Sep2007 The US and four other countries participating in the Global Nuclear Energy Partnership have scheduled a second ministerial meeting for September 16 in Vienna, Austria, where they will adopt goals for the initiative, an Energy Department official said Friday. Assistant Secretary for Nuclear Energy Dennis Spurgeon, in remarks prepared for the World Nuclear Association Annual Symposium in London, said the US, China, France, Japan and Russia will sign a statement of principles that will serve as the foundation for involvement in the partnership by the five countries and any others who join in the future. The meeting will precede an International Atomic Energy Agency general conference in the Austrian capital on the same day. DOE hosted the first GNEP ministerial meeting in Washington in May. The announcement followed one by Australia this week that it would join GNEP and comments by Canadian officials that Ottawa may do so, as well. "There is now worldwide momentum for a significant expansion of nuclear power," Spurgeon said. "For economic reasons, for environmental reasons, and for energy security reasons, it is of paramount importance that we work to bring the vision of a renaissance of global nuclear energy to fruition. Implementing this vision is the cornerstone of the Global Nuclear Energy Partnership. GNEP, announced by DOE in 2006, is a plan to form an international partnership to promote expansion of nuclear power. The plan calls for the partnership to reprocess spent nuclear fuel in a way that makes the resulting plutonium suitable for nuclear fuel but not for nuclear weapons. Reprocessing also minimizes the amount of spent fuel requiring disposal in a repository. Spurgeon said the five GNEP partners have invited other countries to attend the September 16 meeting and considering joining the initiative. While not identifying which countries have received invitations, he said they represent "every geographical region and stage of economic development." In related actions, DOE is working with IAEA on guidance for assessing the nuclear infrastructures of countries considering participating in GNEP, Spurgeon said. "For countries that have no existing nuclear power infrastructure, GNEP partners can share knowledge and experience to enable developing countries to make informed decisions on whether, when and how to pursue nuclear power," he said. ------------ Areva files claims for uranium prospecting in Lapland Paris (Platts)--6Sep2007 Areva has filed claims for uranium prospecting in southern Lapland, reserving a 227-square-kilometer area (56,092 acres), the company said in a statement September 4. Most of the property is owned by the Finnish state. Areva has one year to apply for a license to prospect in the area. Areva was denied uranium prospecting licenses in January on the grounds that the area involved was too big. The area now being applied for is smaller. ------------