WITH METROPOLIS SHUTDOWN, CONVERDYN CAN’T FULFILL URANIUM CONVERSION CONTRACTS

The United States has lost its only commercial domestic uranium conversion plant for at least a year following a shutdown of the Metropolis Works Plant due to issues uncovered by the Nuclear Regulatory Commission. Plant operator Honeywell provided ConverDyn with formal notification of force majeure last month, a contract clause that frees it from liability due to circumstances beyond its control. In turn, ConverDyn has notified its customers of the situation, Honeywell spokesman Peter Dalpe confirmed yesterday.

The shutdown of operations at the Metropolis plant in Illinois, the only U.S. facility that converts mined uranium oxide into uranium hexafluoride that can be used in enrichment plants, also raises questions about the Department of Energy’s recent emphasis on the importance of having a domestic supply of enriched uranium. The Department has justified financial support for development of USEC’s American Centrifuge plant largely on the need for an unencumbered supply of domestic enriched uranium that can be used for tritium production. It is unclear if the uncertain future of a domestic uranium conversion capability could cause similar concerns.

The Metropolis plant was first shut down in early June for planned annual maintenance. However, the NRC brought up a number of issues at the plant this summer that arose as a result of its post-Fukushima review, and in July Honeywell agreed with the NRC to extend the shut down of the facility until necessary upgrades have been put in place. Those upgrades could take about 12 to 15 months and include hardening buildings and equipment to withstand strong earthquakes and tornadoes, Dalpe said.