DOE WRAPPING UP URANIUM MARKET IMPACT STUDY TO LOOK AT EXCEEDING 10% CAP

As the clock ticks down on USEC’s decision on whether it will continue operations at the Paducah Gaseous Diffusion Plant beyond May, the Department of Energy is wrapping up a market study that will examine changing DOE’s self-imposed 10 percent cap on its share of the annual domestic uranium supply. Such a change could pave the way for a DOE program that would used the Paducah plant to re-enrich a portion of the Department’s stockpile of depleted uranium tails, which USEC has said is needed to create sufficient demand for continued operations at the plant. Though two federal utilities have been in discussions with DOE and USEC about purchasing uranium resulting from such a program, it appears that interest from the Bonneville Power Administration has fallen off. Meanwhile, the Tennessee Valley Authority has reengaged in the discussions and is awaiting the results of the market survey before making a decision.