Group items tagged

USEC and Techsnabexport, or Tenex, have agreed to amend the pricing methodology used for the final years of the US-Russia high-enriched uranium agreement, USEC said in a February 20 filing with the US Securities and Exchange Commission. USEC estimated that under the new methodology, the total amount Russia receives under the 20-year contract, which expires at the end of 2013, "will substantially exceed $8 billion." In a filing a year ago, USEC said the contract allows adjustments to be made after 2007 to ensure that Tenex "receives at least approximately $7.6 billion." USEC also said, "We do not expect that any adjustments will be required." The contract covers the so-called SWU component of the low-enriched uranium produced from the downblending of HEU from Russian nuclear weapons. The amendment applies to deliveries in the years 2010-2013. The amendment must be approved by the US and Russian governments, USEC said. USEC and Tenex are their governments' executive agents for the HEU agreement.

"USEC Inc. reported a net loss of $9.7 million in the first quarter, due largely to a decline in enrichment services compared to the same quarter in 2009, but the company is maintaining a positive front - at least in its public statements - on the American Centrifuge Project. The new enrichment facility is based at Piketon, Ohio, but the project has a significant impact on Oak Ridge, where much of the advanced centrifuge equipment is being manufactured. Hundreds lost their jobs last year when the project was scaled back, but about 300 people are still employed in Oak Ridge, either directly for USEC or its manufacturing contractor, B&W. USEC is still hoping to get about $2 billion in loan guarantees from the U.S. Department of Energy, which initially rejected the company's application and then agreed to work with USEC cooperatively to resolve some technology issues. In a prepared statement, USEC CEO John K. Welch said the plan is to update the application this summer after gaining data from operation of the new AC100 machines, which are running in a commercial configuration at Piketon."

Ohio Congresswoman Jean Schmidt (R-2nd District) released a statement Thursday condemning the U.S. Department of Energy, claiming the DOE told her office it would not supply $45 million it promised in August to the American Centrifuge Project at the USEC plant in Piketon. A spokesperson for USEC, however, said the company will continue to work with the DOE to move the project forward. During his 2008 presidential campaign through Ohio, then-Sen. Barack Obama, wrote a letter to Ohio Gov. Ted Strickland pledging his support for the centrifuge project in Piketon. Despite his pledge, the loan guarantee was denied on July 20. A spokesperson from the Obama White House told the Portsmouth Daily Times in July that the project did not appear ready for commercialization. Several weeks later, the DOE agreed to reconsider USEC's application in six months and offered $45 million to help bring it up to DOE standards. Thursday, Schmidt said the DOE was no longer committed to making those funds available to USEC.

Ohio Congresswoman Jean Schmidt (R-2nd District) released a statement Thursday condemning the U.S. Department of Energy, claiming the DOE told her office it would not supply $45 million it promised in August to the American Centrifuge Project at the USEC plant in Piketon. A spokesperson for USEC, however, said the company will continue to work with the DOE to move the project forward. During his 2008 presidential campaign through Ohio, then-Sen. Barack Obama, wrote a letter to Ohio Gov. Ted Strickland pledging his support for the centrifuge project in Piketon. Despite his pledge, the loan guarantee was denied on July 20. A spokesperson from the Obama White House told the Portsmouth Daily Times in July that the project did not appear ready for commercialization. Several weeks later, the DOE agreed to reconsider USEC's application in six months and offered $45 million to help bring it up to DOE standards. Thursday, Schmidt said the DOE was no longer committed to making those funds available to USEC.

Department of Energy to Accelerate Cleanup Work While USEC Further Develops ACP Technology (Washington, D.C.) The Department of Energy announced today that it will further expand and accelerate cleanup efforts of cold-war era contamination at the Portsmouth site in Piketon, Ohio - an investment worth about $150 to $200 million per year for the next four years that is expected to create 800 to 1000 new jobs. At the same time, the Department has encouraged USEC to withdraw its application for loan guarantee funding for the American Centrifuge Plant in Piketon. This would allow USEC to work over the next 12-18 months to continue research, development, and testing to resolve the technology issues facing ACP without hurting the chances of USEC to secure approval for a loan guarantee in the future. "While we believe USEC needs time to develop its technology and demonstrate that it can be deployed at a commercial scale, we're moving forward with other investments that will create good, high-paying jobs in the community," said Energy Secretary Steven Chu. "USEC will have another chance to resubmit their application if they can overcome the technical and financial hurdles, but in the meantime we'll put more people to work in the environmental cleanup effort."

USEC awarded a $1 billion contract to Fluor for work on the enrichment company's Piketon, Ohio gas centrifuge plant, USEC said in a September 25 press statement. The contract, which runs from 2008 to 2012, is for engineering, procurement, construction and construction management services, USEC said. Under the contract, Fluor will be reimbursed for costs and will receive an additional fixed fee. Fluor also can earn an incentive fee based on cost savings it produces, USEC said.

USEC Inc.'s hope for a loan guarantee to complete work on the American Centrifuge Plant in Piketon was given new life Tuesday. The U.S. Department of Energy announced late Tuesday afternoon that it plans to delay a review of USEC's application until several specific technical and financial issues have been addressed. Those issues had been cited in late July as reasons for DOE to request USEC withdraw its application for $2 billion in loan guarantees seen as critical to completion of the American Centrifuge Plant. The unspecified amount of additional time is intended to allow USEC to fully address issues identified by DOE relating to the readiness of the company's uranium enrichment technology. DOE indicated it sees promise in the centrifuge process, but that USEC's application for the loan guarantee does not meet all statutory and regulatory standards that would allow it to be accepted.

USEC Inc.'s hope for a loan guarantee to complete work on the American Centrifuge Plant in Piketon was given new life Tuesday. The U.S. Department of Energy announced late Tuesday afternoon that it plans to delay a review of USEC's application until several specific technical and financial issues have been addressed. Those issues had been cited in late July as reasons for DOE to request USEC withdraw its application for $2 billion in loan guarantees seen as critical to completion of the American Centrifuge Plant. The unspecified amount of additional time is intended to allow USEC to fully address issues identified by DOE relating to the readiness of the company's uranium enrichment technology. DOE indicated it sees promise in the centrifuge process, but that USEC's application for the loan guarantee does not meet all statutory and regulatory standards that would allow it to be accepted.

* Companies to withdraw all pending appeals * USEC says to realize $70 mln no earlier than Q4 * USEC shares up 6 pct May 18 (Reuters) - Uranium fuel supplier USEC Inc (USU.N) and its French competitor Areva (CEPFi.PA) said they agreed to settle pending appeals related to an anti-dumping case involving imports of French low-enriched uranium. Under the settlement, the parties will immediately withdraw or request dismissal of all pending appeals and U.S. Department of Commerce proceedings. USEC said it expected to realize about $70 million no earlier than the fourth quarter from estimated duties deposited by Areva's holding company, Eurodif SA, as a result of the settlement.

"I recently noted that the Dept. of Energy had not yet delivered on its $45 million commitment to USEC as part of a cooperative agreement while R&D continues on the American Centrifuge project. Well, DOE and USEC today issued separate announcements saying that the deal was done, with a $90 million "cost-shared" effort, which reportedly will help demosntrate the commercial viability of the big uranium-enrichment project. Energy Secretary Steven Chu, who's been in Oak Ridge for two days, was reportedly visiting the USEC centrifuge manufacturing facility this afternoon following a tour of Oak Ridge National Laboratory. According to the DOE announcement: "The costs will be shared between the Department and USEC. The Department's $45 million share will be met by taking title (but not immediate possession or custody) to a quantity of depleted uranium tails. "

USEC Inc. said Monday about 120 employees and more than 850 workers for suppliers have lost their jobs since the Energy Department delayed a final review of the company's application for a $2 billion loan guarantee to finance a uranium-enrichment plant in southern Ohio. USEC suspended work on the project in August after the government's decision over its plans for the American Centrifuge plant in Piketon. Job losses have occurred in eight states with Ohio and Tennessee having the largest losses. USEC said it is continuing with demonstration activities for the project and wants to be in a position to ramp back up should it be approved for the loan guarantees in 2010. The company said it hopes to update its application for the loan guarantee by early next year.

USEC Inc. said Monday about 120 employees and more than 850 workers for suppliers have lost their jobs since the Energy Department delayed a final review of the company's application for a $2 billion loan guarantee to finance a uranium-enrichment plant in southern Ohio. USEC suspended work on the project in August after the government's decision over its plans for the American Centrifuge plant in Piketon. Job losses have occurred in eight states with Ohio and Tennessee having the largest losses. USEC said it is continuing with demonstration activities for the project and wants to be in a position to ramp back up should it be approved for the loan guarantees in 2010. The company said it hopes to update its application for the loan guarantee by early next year.

The Nuclear Regulatory Commission has recertified two gaseous diffusion plants (GDPs) operated by the United States Enrichment Corporation (USEC). The recertifications, valid until Dec. 31, 2013, allow USEC to continue operating the plants near Paducah, Ky., and Portsmouth, Ohio. The recertifications are required under the Atomic Energy Act of 1954 (AEA), as amended by the Energy Policy Act of 1992, which created USEC. The certifications establish that the plants are in compliance with safety, safeguards and security regulations established by the NRC for these facilities. USEC applied for the recertifications in April. On Dec. 17, the NRC issued a report to Congress on the operation of the GDPs, covering the period from Oct. 1, 2003, to Sept. 30, 2008. The report is required by the AEA no later than the date on which a certification is issued. The certifications were issued Dec. 22.

The largest tax break given under city policies in effect for several years might have to be revised now that USEC Inc. and its partner and contractors have begun laying off employees, city officials said last week. The property tax break, valued at up to $5 million over a 10-year period, was approved about a year ago -- before USEC ran into trouble getting a big loan guarantee from the U.S. Department of Energy. The $2 billion guarantee would have been used for work on USEC's American Centrifuge Program.

The largest tax break given under city policies in effect for several years might have to be revised now that USEC Inc. and its partner and contractors have begun laying off employees, city officials said last week. The property tax break, valued at up to $5 million over a 10-year period, was approved about a year ago -- before USEC ran into trouble getting a big loan guarantee from the U.S. Department of Energy. The $2 billion guarantee would have been used for work on USEC's American Centrifuge Program.

The U.S. Energy Department said on Tuesday it has agreed to delay the final review of USEC Inc's (USU.N) application for a loan guarantee to fund a new uranium enrichment processing plant. "The additional time will allow USEC to make efforts to fully address issues DOE has identified relating to the readiness of the company's uranium enrichment technology," the department said. Last month, the department asked USEC to pull its loan request for the planned American Centrifuge Plant in Piketon, Ohio.

The U.S. Enrichment Corp. and Babcock & Wilcox Technical Services today announced plans to form a joint venture known as American Centrifuge Manufacturing LLC, which will become the lead organization in production of machines for the new uranium-enrichment plant at Piketon, Ohio. According to Elizabeth Stuckle, the USEC spokeswoman at headquarters in Maryland, the partnership will be a 55/45 pecentage arrangement with USEC holding 55 percent of the newly formed company that will manage the manufacturing program that ultimately will produce 11,500 machines -- and perhaps more if there's an expanded enrichment facility. "This means all manufacturing suppliers who are manufacturing parts for the American Centrifiuge plant will report up through this joint venture," Stuckle said. B&W Technnical Services Clinch River has been a manufacturer of components for the centrifuges under a contract with USEC since 2007. Now the partnership will be managing that work as well as other manufacturing activities for the AC100 machines in West Virginia, etc..

USEC Inc. (NYSE:USU) today announced that it expects the U.S. Department of Energy (DOE) to make a decision on a conditional commitment for a loan guarantee by early August. A loan guarantee conditional commitment would allow USEC to continue deployment of its American Centrifuge Plant, currently being built in Piketon, Ohio, and would ensure the security of thousands of jobs created across the country by the plant's construction and manufacturing activities. The Company also said that at the direction of its board of directors it is preparing demobilization plans for the American Centrifuge Plant if it does not receive a conditional commitment by early August. USEC announced in February a slowdown in the planned escalation of spending on the project and has stated that a further delay in obtaining a DOE loan guarantee would require the Company to implement further project spending reductions.

"Its bid for a $2 billion federal loan guarantee is still pending, but the company trying to build a $3.5 billion uranium-enrichment plant in Piketon, Ohio, will get a promised infusion of $45 million from the Department of Energy. The promise to USEC was made in August when the Energy Department turned down the loan-guarantee application, with federal officials saying they didn't think the technology had been proven commercially viable. USEC says the loan guarantee is critical to its ability to build the plant, and the company won a temporary reprieve and the ability to reapply for the loan guarantee at a later date. That reapplication is expected to happen this year. In the meantime, the $45 million will help USEC keep working on the plant's technology, and the company says it will match the federal money with $45 million of its own. The federal cash comes from the Energy Department assuming $45 million worth of depleted uranium "tails" counted on USEC's books as a liability."

The United States Enrichment Corp. is putting pressure on the U.S. government. The company, which is the only one in the country that enriches uranium, is telling the government to pay up or it will slow down its production of nuclear fuel. On Thursday, USEC (nyse: USU - news - people ) announced that it is taking steps to save cash and halt construction and manufacturing activities, while it waits to hear if it will receive government funding. USEC applied for a $2.0 billion loan from the Department of Energy in August 2008 to build the American Centrifuge Plant in Piketon, Ohio.

USEC Inc. ( said Thursday it had awarded a $1 billion contract to Fluor Corp. for the construction of USEC's American centrifuge Plant in Piketon, Ohio. The contract will run until 2012. "This contract is expected to create approximately 1,000 new jobs, including 800 jobs at the Ohio site," said USEC Senior Vice President Philip Sewell. The plant will provide nuclear fuel for power plants

USEC Inc. submitted on August 29, 2008, the second part of a two-part application for a loan guarantee from the U.S. Department of Energy (DOE) to fund construction of the American Centrifuge Plant in Piketon, Ohio. USEC submitted the first part on July 24, 2008.

March 2, USEC stock plunged a walloping 24.85 percent, from $5.03 to $3.78 per share, with market value dropping about $200 million in four days, hitting south Ohio especially hard. USEC had a 50 percent profit loss in 2008 compared to 2007, but the company has larger issues. Its hypothetical centrifuge plant in Piketon now ranks fourth among competing domestic enrichment projects, out-classed by projects in New Mexico, Idaho and North Carolina in terms of cost, technical demonstration and schedule. This comes just as the capital crisis severely restricts construction of nuclear reactors, reducing domestic demand forecasts to only two new enrichment projects. The others would produce uranium cheap enough to export. But USEC's chances of developing an export market are nil, not only for its high prices, but because USEC has alienated foreign customers through monopolistic support of protectionist measures to keep out foreign uranium.

"Nuclear energy firm USEC Inc. said Friday it secured a new line of credit that will provide it $225 million upon closing with the option to secure as much as $350 million. The company said the new line of credit replaces an existing line set to mature in August. The new credit deal is supported by JPMorgan Chase Bank, Wells Fargo & Company and UBS. The new credit facility will mature May 31, 2012. USEC is a leading supplier of enriched uranium fuel for commercial nuclear power plants. The company's stock fell 7 cents, or nearly 2 percent, to close at $4.36."