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In brief

Nuclear Monitor Issue: 
#744
16/03/2012
Shorts

One year Fukushima: people demand end to nuclear power!
In the weekend of 10-11 March, one year after Fukushima, hundreds of thousands of people took to the street to demonstrate against nuclear power. In Japan, many thousands demanded the abolition of nuclear power; 16,000 in Fukushima, 14,000 in Tokyo and 15,000 in Osaka were the largest demonstrations. In Germany a total of 50,000 people took part in 6 demonstrations; in the UK the largest antinuclear action in over three decades took place near Hinkley Point, where 1,000 people surrounded the nuclear power station and blocked it for 24-hours. In Switzerland 8,000 people demanded the immediate closure of nuclear power plants. In Hong Kong (China), Taipeh (Taiwan), Seoul (South Korea) and many places in North and South America, demonstrations or other actions were held too.

By far the largest demonstration was right in the 'heart of the nuclear beast': in France. Demonstrators in the Rhone valley formed a human chain that stretched for 230 kilometers between Lyon and Avignon. About 60,000 people participated. This is an enormous succes and one of the largest antinuclear demonstrations ever in France. This highlights a shift in public opinion and in a few weeks time presidential elections will be held with one of the two main candidates sceptical about the future importance of nuclear power in France.

The Rhone valley has Europe's highest concentration of nuclear reactors and other nuclear facilities. France's 58 nuclear reactors generate about 75 percent of the country's electricity, making it the world's most nuclear-dependent nation.


Mühleberg: Time to go.
One of the world's oldest nuclear power plants in operation is Mühleberg in the Swiss canton of Bern. A boiling water reactor bought from General Electric and first put into operation in 1972, Mühleberg is aimed at by the Swiss antinuclear movement because of cracks in the vessel around the heart of the reactor. The Würgassen NPP in Germany and Millstone I in the USA were shut down because of the same problem. So when the Swiss Federal Department of Energy gave an unlimited operating license to the Mühlebergs' legal owners (BKW) in 2009, this was seen as a provocation. Neighbors of Mühleberg gathered to attack the decision in court. The city of Geneva, historically antinuclear, as well as other smaller towns gave in all 120,000 fr (100,000 euros) to finance the cost of the appeal. And finally, on March 8, the Federal  Administrative Tribunal released its decision: BKW must shut down Mühleberg by end of June 2013, unless a plan to fix the numerous faults is presented and accepted. Previously, the Swiss Federal Nuclear Safety Institute released a guarantee stating Mühleberg posed no security threat. The courts' decisions gives a strong blow to this Institute, regularly criticized for its partiality in favor of the nuclear industry. After being at first very surprised by this decision, one can with hindsight acknowledge that the federal court simply took a fresh new look at nuclear safety, new since Fukushima: In Japan too, security authorities told the government that Fukushima Daiichi would resist foreseeable major natural catastrophes...

Five days after the judgment, 8000 demonstrators gathered in front of the old power plant of Muhleberg. BKW has until April 8 to decide whether they will attack the decision in the countries' highest court.

(Update: On March 14, BKW appealed the court ruling on Mühleberg)
Philippe de Rougemont, Sortir du nucléaire Suisse romande, 14 March 2012


DPRK: agreement on suspension of enrichment.
North Korea (Democratic People's Republic of Korea) has agreed to implement a moratorium on long-range missile launches, nuclear tests and nuclear activities at Yongbyon, including uranium enrichment activities. The DPRK has also agreed to the return of IAEA inspectors to verify and monitor the moratorium on uranium enrichment activities at Yongbyon and confirm the disablement of the 5-MW reactor and associated facilities. In return, the US has agreed to meet with the DPRK to finalize administrative details necessary to move forward with the proposed package of 240,000 metric tons of nutritional assistance "along with the intensive monitoring required for the delivery of such assistance."

This was announced on February 29, after the U.S. delegation returned from Beijing following a third exploratory round of U.S.-DPRK bilateral talks.
Press statement, US Department of State, 29 February 2012.


The mysterious flash near South Africa in 1979.
A new paper written by Leonard Weiss, reviews the history of the September 22, 1979 double flash recorded by the VELA satellite and concludes that the flash was an Israeli nuclear test assisted by South Africa. The paper also relates a personal experience of the author in 1981 while working in the U.S. Senate that reinforces the conclusion. The paper calls for the declassification and release of documents that could remove any lingering uncertainty regarding the event. One of the likely reasons that the U.S. government is withholding the declassification of relevant documents is to assist Israel to maintain its policy of opacity in nuclear affairs, a policy which had its origin in a bargain made with the U.S. during the Nixon presidency, and whose abandonment accompanied by the admission that Israel violated the Limited Test Ban Treaty would create some uncomfortable political fallout for both countries. It is hard to argue that helping Israel in this way contributes to U.S. national security at a time when the U.S. demands openness in the nuclear activities of Iran, North Korea, Syria, and all other countries who may be engaged in clandestine weapon-related nuclear activities.

The Iraq war has shown the harm that can result from the politicization of intelligence in order to support a desired policy outcome whose support by the public would otherwise be problematic. In the case of the VELA event, U.S. administrations on both sides of the political fence have sought to ignore or demote the value of legitimately collected and analysed intelligence information in order to reduce or eliminate pressure to take an action with unpredictable or negative political repercussions. Obfuscating or denigrating hard intelligence data in order to avoid a political problem can be as dangerous to national security and democracy as inventing bogus intelligence in order to smooth the way into a war.

The paper 'Israel’s 1979 Nuclear Test and the U.S. Government’s Attempt to Cover It Up', is available at: http://armscontrolcenter.org/IsraeliTestPDF.pdf

In brief

Nuclear Monitor Issue: 
#736
11/11/2011
Shorts

Belgian phase-out: oldest 3 reactors to close in 2015.
Belgian's political parties have reached a conditional agreement to phase nuclear power by 2025, if they can find an adequate supply of energy from alternative sources by that time. Belgium currently has seven nuclear reactors at two sites, four at Doel in the north, and three at Tihange in the south. The three oldest reactors are set to be shut down by 2015, with the rest taken off the grid by 2025. The agreement confirms a decision taken in 2003, which was shelved during Belgium's political stalemate. The country has been without a federal government for 18 months, after coalition talks repeatedly failed following the elections in April 2010. Belgian's power stations are operated by Electrabel, which is part of French GDF-Suez. The company's share price fell nearly 5 percent on Monday.

Although Belgium had long planned its nuclear exit, public hostility to nuclear power has grown since Japan's nuclear disaster at Fukushima earlier this year.  Belgium will now negotiate with investors to see how it can find new capacity to replace the 5,860 MW that will be lost if the nuclear phase-out goes ahead.
Deutsche Welle, 31 October 2011


EDF delays construction start in UK.
In Nuclear Monitor 735 (October 21, 2011) we published an article called: 'UK nuclear program: companies reconsider investments', in which it was analyzed that even EDF must be having second thoughts about investing in new build in the UK, although (Electricite de France) is the only company that did not express doubts about investing in new nuclear in UK. E.On, RWE, Centrica and SSE (which cancelled investments) all have second thoughts and started internal review processes.

But on October 28, a few days after the publication, EDF decided to delay the construction of the four planned nuclear reactors in the UK, confirming a report from the French Les Echos newspaper. According to the EDF spokeswoman, EDF is taking time to evaluate the consequences of delays at a reactor under construction in Flamanville and the Fukushima Daiichi nuclear disaster. EDF will release a new calendar for the project during the fall, she said. EDF was planning to start building the first of the planned nuclear rectors in 2013, the newspaper said.

(to be continued…)
Foxbusiness.com, 28 October 2011


Mexico: natural gas cheaper than nuclear.
Mexico, Latin America’s second-largest economy and one of three Latin American nations that uses nuclear power (the other two being Brazil and Argentina), is abandoning plans to build as many as 10 new reactors and will focus on natural gas-fired electricity plants after boosting discoveries of the fuel. Mexico considered a plan to build as many as 10 nuclear power plants by 2028, according to a CFE presentation. The state company was weighing four investment plans to increase long-term capacity, the most ambitious nuclear plan included building 10 nuclear plants, according to the May 12, 2010 presentation.

The country is “changing all its decisions, amid the very abundant existence of natural-gas deposits,” newly appointed Energy Minister Jordy Herrera said in a November 1 interview. Mexico will seek private investment of about US$10 billion during five years to expand its natural gas pipeline network, he said.

Mexico’s energy ministry plans to update the nation’s long- term strategic plan to reflect the increased importance of gas, Herrera said, with the report due in the first quarter of 2012.

“Until we find a model to make renewable energy more profitable, gas is more convenient,” Herrera said. “The country has very high potential to develop renewable energy,” Herrera added. “But the renewable energy world is hurt by the cheap gas prices. And the government has to consider how much it can spend to promote alternative energy sources.”
Bloomberg.com, 3 November 2011


New IPFM-report on managing spent fuel.
The International Panel on Fissile Materials (IPFM) releases new report: "Managing Spent Fuel from Nuclear Power Reactors: Experience and Lessons from Around the World". The report provides an overview of the policy and technical challenges faced by efforts at long-term storage and disposal of spent fuel from nuclear power reactors over the past five decades. It analyzes the efforts to manage and dispose of spent fuel by ten countries that account for more than 80 percent of the world's nuclear power capacity: Canada, Finland, France, Germany, South Korea, Japan, Russia, Sweden, the United Kingdom and the United States.

The new report also provides an overview of the technical issues relating to interim storage and transport of spent fuel, geological repositories, and the challenge of the associated international safeguards. The spent fuel from nuclear power reactors, and the high-level wastes produced in the few countries where spent fuel is reprocessed to separate plutonium, must be stored in a manner that will minimize releases of the contained radioactivity into the environment for up to a million years. Safeguards will be required to ensure that any contained plutonium is not diverted to nuclear-weapon use.
A PDF version of the report is available at www.fissilematerials.org/ipfm/site_down/rr10.pdf


2011 edition of Nukespeak published.
On October 4, 2011, Sierra Club Books published the 30th anniversary edition of Nukespeak: The Selling of Nuclear Technology from the Manhattan Project to Fukushima exclusively in e-book format. First published in 1982 in the wake of the first great nuclear plant accident at Three Mile Island, the original edition, written by Stephen Hilgartner, Richard C. Bell, and Rory O’Connor, examined the turbulent history of the nuclear industry, documenting the extraordinary public relations campaign that developers undertook to sell nuclear technology.

Nukespeak is the language of the nuclear mindset — the worldview or system of beliefs of nuclear developers and enthusiasts. The word “Nukespeak” is a  tribute to George Orwell, who in his novel 1984, used the term “Newspeak” as the name of the language of Big Brother and the totalitarian state. Unlike a living language, the state was constantly removing words from common usage, with the ultimate goal to make it (literally) impossible for a citizen to think a seditious thought.

The new 2011 edition, updated by original authors Richard C. Bell and Rory O’Connor, brings the book fully up-to-date, exploring the critical events of the last three decades—including the disaster at Chernobyl, the campaign to re-brand nuclear energy as a “clean, green” solution to global warming, and the still unfolding disaster at Japan’s Fukushima power plant. In addition, the authors argue persuasively that a language of euphemism and distraction continues to dominate public debate about nuclear weapons and nuclear power around the world.
The book can be purchased online at: Amazon, iTunes and Barnes & Noble


Radioactive and toxic mine dumps threaten Johannesburg. The 380 mine dumps and slimes dams in the the South African province Gauteng are causing radioactive dust fallout, toxic water pollution and soil contamination, according to the final draft of a new report by the Gauteng Department of Agriculture and Rural Development (GDARD) on mine residue areas (MRAs). The report was completed in July but is yet to be released. The report warns that if the province doesn’t act, it's capital “Johannesburg will eventually be seen as an old mining town that has reached the end of its working life”, with banks refusing to finance any homes or development near the dumps. Johannesburg is the largest city in South Africa by population and the world's largest city not situated on a river, lake, or coastline.

The report found that most MRAs – including mine dumps, waste rocks dumps and water storage facilities – in Gauteng are radioactive “because the Witwatersrand gold-bearing ores contain almost 10 times the amount of uranium in gold. “These radioactive tailings co-exist in these MRAs alongside the iron sulphide mineral pyrite, which reacts in the presence of oxygen and water to form a sulphuric acid solution – the main cause of acid mine drainage,” says the report, Feasibility Study on Reclamation of Mine Residue Areas for Development Purposes: Phase II Strategy and Implementation Plan. But it says that the broader issue of “diffuse sources” of pollution represented by the mine dumps and slimes dams and their possible interactions with rainfall, seepage, surface water runoff and shallow groundwater “is possibly more important than the impact of acid mine drainage in Gauteng.

In February, the Saturday Star revealed how the National Nuclear Regulator (NNR) had recommended the relocation of residents of Tudor Shaft informal settlement, on an old radioactive mine dump, in Krugersdorp. The report suggests that this NNR ruling is “likely to become a watershed ruling likely to be relevant for a number of other sites” and that high-risk informal settlements will need to be relocated to minimise human health risks.
Saturday Star (South Africa), 5 November 2011

The troubled recent history of nuclear power in South Africa

Nuclear Monitor Issue: 
#733
6168
23/09/2011
Greenpeace South Africa
Article

Six days after the nuclear catastrophe at Fukushima in Japan in March 2011, South Africa’s Minister of Energy Dipuo Peters declared her country’s intention to add 9,600 MW of nuclear electricity - or six new nuclear reactors. On September 15 she said she had signed off on a proposal for new nuclear power plants and said it would be presented to cabinet soon. Peters said she expects the cabinet to decide on the plan by the end of this year and the bid process to start early in 2012. The last attempt to build a nuclear plant, led by state-owned power utility Eskom, was scratched on funding woes.

Speaking at the second regional conference on energy and nuclear power in Africa in Cape Town on May 30 this year, Ms Peters went even further, trumpeting the development of a nuclear-export market to the rest of Africa, supported by both the International Atomic Energy Agency, and the African Union.

South Africa spent 13 years pursuing the Pebble Bed Modular Reactor, wasting billions of rands in the process (R9-billion was spent on research and development and another R22-billion would have been needed to complete a demonstration model) as investors across the world shied away from having anything to do with it. Eventually the state cancelled the project and wrote off the monies it had spent. The government and its wholly owned power utility Eskom remain hell bent on securing what it believes will be a cheap and sustainable nuclear solution for its energy supply crisis.

By 2006, South Africa was beginning to run short of power generation capacity. It was clear that the PBMR would not be available to order for a long time. Eskom began to talk about ordering ‘conventional’ nuclear power plants. First in line were the EPR supplied by the French company, Areva and the AP1000 supplied by the Japanese owned company, Westinghouse. Eskom’s implication was that such designs were well proven. In fact, at that point, only one order had been placed for an EPR and none for the AP1000. By 2011, there were four orders for EPRs, two for China, one for France and one for Finland and four for AP1000s, all for China. None of these orders were in service by 2011 and the two EPR orders for France and Finland were seriously over budget and late.

In 2006, the South African government forecast that a new unit could be on-line between 2010 and 2012. By mid-2007, Eskom was targeting construction of 20,000 MW of new nuclear capacity by 2025, although completion of the first unit had slipped to 2014. It expected an overnight construction cost of US$2,500/kW. (Overnight cost is the cost of a construction project if no interest was incurred during construction, as if the project was completed "overnight.")

In January 2008, Eskom received two bids in reply to its call for tenders from November of the previous year for 3,200-3,400 MW of new nuclear capacity in the near term and up to 20,000 MW by 2025. One bid was from Areva for two EPRs (plus 10 more for the long-term) and the other from Westinghouse for the three AP1000s (plus 17 more in the long term).

It was later reported that the bids were for around US$6,000/kW (overnight) – more than double the expected price. It was therefore no surprise when Eskom abandoned the tender in December 2008 on the grounds that the magnitude of the investment was too much for it to handle. This was despite the willingness of Coface, the French government’s loan guarantee body, to offer export credit guarantees and despite Areva’s claims that it could have arranged 85% of the financing.

Eskom in crisis
Three weeks into January 2008, Eskom had hit a brick wall. It could no longer meet all the country’s electricity demands without melting the national grid. Eskom turned to the bulk users, and appealed to them to ration their demand. Even so, for some months the country faced a series of electricity outages (euphemistically called “load shedding”). Not only was this a blow to businesses, agriculture, schools, hospitals and households, but it coincided with global recession.

Eskom had also run out of money and its credit ratings were reduced. Eskom could no longer afford to invest in new infrastructure, without massive extra income. It would take three years before it could make new orders, and until then the board was saying no to new investments. The biggest blow to the nuclear industry was the decision to scrap the tender process for Nuclear-1, the first of a number of new large-scale reactors. The government had to inform vendors Areva and (Toshiba-owned) Westinghouse that their bids would not be considered for the meantime. The policy was not being suspended, but the orders were temporarily shelved.

Newly appointed CEO Brian Dames tried to rebuild Eskom’s reputation and finances. A big hurdle was the steady loss in Eskom’s credit ratings. Eskom hoped to raise electricity tariffs substantially, despite this being opposed by the trade union movement and other sections of civil society. The National Energy Regulator reduced Eskom’s application for 35% increases for three years to 25%, amounting to a doubling of tariffs over the same period, hitting poor and middle-class households, who objected strongly to the sweetheart commercial deals which Eskom had made in the past with smelters and other large users to be charged minimal tariffs.

The government then guaranteed Eskom’s massive investment in two giant coal-fired power stations. Medupi, the first of the two to be built, will be funded by the World Bank despite the enormous carbon emissions the 4,800 MW plant will produce. The loan of US$3,75 billion, was strongly opposed by local NGOs, and even caused countries like the Netherlands, Britain, the US, Norway and Italy to abstain from voting at the bank’s decision making committee.

To help Eskom get funding for its future nuclear power stations, companies like Areva have said they will help to intercede with the French government to release development finance. The potential Chinese bidders for Nuclear-1 (China Guangdong Nuclear Power Group) have linked up with the Standard Bank of South Africa, 20% owned by a Chinese bank (Industrial and Commercial Bank of China), in order to assist Eskom to purchase future reactors.

As a result, Eskom’s financial woes are less of an obstacle to re-launching the bids for Nuclear-1.

2010 onwards
The South African government seemed to assume that cheap reactors can be found, if only they could be identified. This led it to look at a design offered by Korea, which had won four orders for the Unityed Arab Emirates (UAE) with a bid worth about US$4,000/kW (overnight costs), well below the levels offered by Areva and Westinghouse, but 60% above the level assumed by the South African government in 2006.

Despite the precariousness of the Korean option, the South African government has had discussions with the Korean government about the supply of such reactors.

The other design being considered by South Africa is the one that makes up the majority of Chinese orders. China dominates the world market for nuclear power plants accounting for 25 out of 38 of the reactors on which construction has started since January 2008. Of the 25, 19 are supplied by Chinese companies and this CPR-1000 design is based on the design China imported from France in the 1980s. This is the same design as is already installed at Koeberg. Some updating will have taken place, for example taking advantage of better IT equipment, but it is clear that it is fundamentally a 40 year old design. The South African government has also been talking to the Chinese government about importing such reactors.

However, a number of assumptions seem to underlie this attempt:
• That the reactors would be much cheaper than more modern designs, partly because they are older and partly because they would be manufactured in China;
• That China has the spare component manufacturing capacity to export plants; and,
• That the NNR would be comfortable licensing a design that fell well short of the requirements of Western regulators, for example on protection against impact by aircraft.

Eskom seems remote from this process and it is not clear whether it supports the idea of importing older technology. As with its reservations with the PBMR, Eskom could be uncomfortable raising any concerns about South African government policy.

The lessons from the Fukushima disaster in March 2011 have yet to be fully identified, but there does seem to be a strong probability that older designs will be seen, worldwide, not just in the West, as inadequate for new orders. In particular, designs with a greater level of ‘passive’ safety – ones that in an emergency situation do not require the operation of engineered safety systems to bring them to a safe condition – will be required. Even the French EPR does not incorporate strong passive safety features and the Chinese and Korean designs certainly do not have passive safety.

The new call for nuclear tenders
The call for tenders expected for 2012 is based on the Integrated Resource Plan 2010. The rationale for the integrated resource planning process is that it should identify the lowest cost way to meet electricity demand by considering all resources including energy efficiency measures. The plan includes 9,600 MW of new nuclear capacity to be completed between 2023 and 2030. Whether this nuclear capacity really represents the least cost way of meeting demand depends on the accuracy of the assumptions made on the cost.

The IRP 2010 bases its assumptions on a report commissioned from the US Electric Power Research Institute (EPRI, 2010), a US research organisation funded primarily by US electric utilities. Nuclear power costs are dominated by the costs associated with the construction of the plants, the overnight cost of construction and the cost of borrowing, which is related to the discount rate. For the construction cost, the EPRI report gives an overnight cost of R28,375/kW for an Areva EPR and R33,235/kW for a Westinghouse AP1000. If we assume an exchange rate of US$1=R6.75, this equates to about US$4,200/kW and US$4,900/kW. It is hard to understand why the South African government should assume costs that are only 70-80% of the prices bid two years earlier. There is certainly no evidence that estimated nuclear costs have gone down since then.

The discount rate of 8% adopted by the South African government also appears too low. For example, the UK government assumed a discount rate of 10% in 2008 when it assessed the economics of nuclear power. The discount rate is effectively a tool to allocate the limited quantity of capital available as profitably as possible. It should ensure that only projects that achieve the given rate of return on capital – the discount rate – are pursued. If nuclear power is assessed using too low a discount rate, it is likely that relatively unprofitable projects will be pursued at the expense of more profitable projects. The use of too low a discount rate is particularly serious because one of the key reasons the previous tender failed appears to have been because affordable finance was not available. Cape Times reported that Rob Adam, CEO of Necsa, has said:

‘The country’s nuclear programme had been canned in 2008 because “we couldn’t get a bank to lend the money for long enough. Commercial banks’ time frames are too short. So now the vendor must come with a bank or financial institution”, and South Africa would repay this over time.’

It appears the South African government did not learn from the previous tender when it assumed far too low a construction cost and proceeded with a call for tenders that had to be abandoned because the prices bid could not be financed. The government also seems heavily involved with the process, with ministers and sometimes the president conducting negotiations and signing agreements with governments of potential suppliers. These efforts have been particularly intense with France with whom an undertaking to explore an intergovernmental agreement on spent-fuel management, co-operation between the countries’ nuclear safety authorities, and implementation of the agreement on nuclear R&D between the Necsa and its French counterpart have been agreed.

Sources: This article (except the lead) is reprinted from a new Greenpeace South Africa report, called 'The true costs of nuclear power in South Africa'. It is available at: http://www.greenpeace.org/africa/en/News/news/The-True-Cost-of-Nuclear-E...
Contact: Greenpeace South Africa, 10A and 10B Clamart House, Clamart Road, Richmond, Johannesburg, South Africa
Email: iafrica@greenpeace.org
Web: www.greenpeaceafrica.org

Uranium mining in Africa: radioactive revenues

Nuclear Monitor Issue: 
#727
6137
26/05/2011
SOMO
Article

For African countries, the revenue derived from the uranium mining operations of multinational corporations is -despite the high price of uranium- minimal, uncertain and volatile. The financial agreements that these countries make with the uranium producers regarding their share in the profits are the primary reason for this state of affairs. This is the conclusion of a new report from WISE and the Centre for Research on Multinational Corporations (SOMO): Radioactive Revenues: Financial Flows between Uranium Mining Companies and African Governments.

The report Radioactive Revenues analyses the financial aspects of uranium mining in the main African uranium producing countries -Namibia, Niger, Malawi and South Africa- and examines the activities of the four largest multinational uranium mining companies in Africa: the French AREVA group, the English-Australian Rio Tinto, the Australian Paladin Energy and the South-Africa-based AngloGold Ashanti.

Currently, one-fifth of all uranium worldwide is mined in Africa, and production is expected to double in the next two years. Nevertheless, uranium mining remains an uncertain source of revenue for African countries given the unstable price of uranium and the dependence on corporate profits.

The predictability of revenues
The most important revenues for host states from uranium mining in Africa are corporate income taxes, selling rights, mining royalties and, to a lesser extent, employment taxes, but there is a great deal of difference between the predictability and stability of these sources of revenue. Selling rights and royalties are generally more stable than corporate income tax as they do not depend directly on the profits of the mining companies, which can be highly volatile. The revenues from mining royalties depend primarily on uranium prices on the world market, but also on agreed prices and quantities in long-term contracts signed with customers.

Of all of the potential sources of revenues, those related to corporate earnings are the most volatile. These sources include corporate income tax (a percentage of taxable profits), taxes on dividends, and benefits from holding a stake in the mining company (dividend, retained earnings). These revenues are affected by uranium prices, production costs and by companies being able to reduce their corporate income tax liability through mechanisms that compensate them for losses in earlier periods and/or through the accelerated depreciation of investments.

In general, corporate income taxes may be further reduced by multinational corporations through the use of intra-group transactions that move their costs and earnings to jurisdictions where the corporate income tax rate is most favourable to the company. This study does not investigate the use of such (legal or illegal) tax avoidance/evasion mechanisms, but the frequent use of these mechanisms by multinational corporations in general likely reduces the contribution of corporate income tax as a source of revenue for host states and contributes to its unpredictability.

Niger’s right to sell a percentage of the uranium produced directly on the global market uranium provides an additional and somewhat stable source of revenue for the Nigerien government. This revenue stream is of course dependent on the market price.

Uranium prices
Many of the sources of revenue for host states depend heavily on the price of uranium on the world market. The period 2007–2009 was somewhat unique in this respect. During the period 1990- 2003, prices were much lower. Beginning in 2004, prices rose sharply, peaked in 2007, and have been slowly decreasing since then, although 2010 saw prices rise again slightly over 2009 levels.

The high prices during the 2007–2009 period caused earnings and profits of mining companies to rise as well. As a result, revenues for the host states from mining royalties and corporate income taxes increased as well. However, there is no guarantee that prices will not fall back to the low levels seen during 1990–2003, which would mean a significant reduction in revenues from royalties and corporate income taxes.

Changing regulations on revenues for host states
The study finds that some African host states have recently moved to strengthen their financial regulations on uranium mining in order to receive greater revenues from these operations. In 2007, Namibia decided that uranium mining companies should pay royalties of 3% of sales. In 2010, South Africa introduced mining royalties of 1.75% of gross sales when profits are 10% of gross sales.

However, the move that has been the most remarkable in generating additional revenues for the host state has been Niger’s acquisition of uranium selling rights, first negotiated with AREVA in 2007. During the years 2007, 2008 and 2009 the revenues received by the Nigerien government from this revenue stream amounted to Euro 9.1 million, Euro 27.5 million and Euro 20.9 million respectively. From 2013/2014 onwards, the Imouraren mine, with AREVA as the main shareholder, will enter into production. The government of Niger will have the right to sell 33.35% of the uranium produced, which is estimated to reach 5,000 tons annually. Also, for the existing mining operations by SOMAÏR and COMINAK, since 2010 Niger has the right to sell uranium according to its stake in the mining company (i.e. 36.6% and 31%, respectively).

Comparison of taxes and other contributions
Per kilogram of uranium sold, the study finds that Paladin in Malawi and AngloGold Ashanti in South Africa pay less taxes and other financial contributions than Rio Tinto in Namibia and AREVA in Niger. With a relatively low percentage of mining royalties to be paid and many opportunities for Paladin to reduce its corporate income tax in the early years of operations, Malawi is not expected to obtain much revenue from Paladin’s uranium mining operations if uranium prices decline. However, given the physical and operational differences between mines (e.g. uranium ore grade, capacity, production costs, lifetime, etc.), it is difficult to make a judgement about the regulations relating to revenues for the host states with regard to each mining operation.

In the period 2005 – 2009, the revenues received by Niger from the AREVA-owned mining operations amounted to Euro 225 million. In the same period, Namibia received Euro 181 million in revenue from the Rio Tinto-owned mining operations. A notable difference is the royalty rate, which is 3% in Namibia and 5.5% in Niger. In the period 2005 – 2007, Namibia received more revenue than Niger from corporate profits, but Niger has been catching up through the acquisition of selling rights.

Transparency of companies
Of the four companies reviewed in the study, Paladin appears to be the least transparent. It is the only company in the research that does not support the Extractive Industries Transparency Initiative (EITI) and was the only company unwilling to answer requests for information for this study. Payments such as employment taxes and customs duties could not be found in its annual reports, while payments of corporate income taxes and royalties were not listed on a country-by-country basis.

Rio Tinto is transparent with regard to taxes and other contributions to the Namibian government by its majority owned company Rössing Uranium. Rio Tinto, along with AngloGold Ashanti, reports its tax payments on a country-by-country basis. AREVA cooperates in the EITI-related process of comparing company payments and government revenues in Niger. Among the four countries examined in this report, Niger is the only one that participates in the EITI.

The agreements (investment contracts) that uranium mining companies sign with host states can have a law-making function and often include tax exemptions and stabilization clauses. Such mining agreements are generally not made public. Paladin has signed a mining agreement with the government of Malawi, including tax exemptions and a clause which guarantees that the company will not face any increase in taxes or other contributions in the coming ten years. The fiscal details of this mining agreement have been made public. For Niger, most fiscal details of such agreements could be found without gaining access to the mining agreements themselves. The agreements between AngloGold Ashanti and South Africa and Rio Tinto and Namibia did not seem to contain specific clauses on taxes and other contributions that differ from national laws.

Source: Radioactive Revenues. Financial Flows between Uranium Mining Companies and African Governments by Albert ten Kate & Joseph Wilde-Ramsing. SOMO, WISE 2011.
The report can be downloaded at: http://somo.nl/publications-nl/Publication_3629-nl/

African NGO's trained on uranium mining issues

Nuclear Monitor Issue: 
#721
6108
17/12/2010
Fleur Scheele, WISE Amsterdam
Article

Continued interest of international uranium mining companies in the possibilities of extracting uranium from African soil has attracted the attention of non-governmental organizations worldwide. Many organizations work both individually and in groups on uranium mining in various African countries. In November 2010, a training week for NGOs was organized on the issue in Tanzania. An extremely diverse group of African and non-African experts and organizations joined and shared their knowledge and strategies in order to obtain information and inspiration for further action on uranium mining in Africa.

Representatives from 21 organizations from 9 African countries were present during the training week. All of them have had experiences with international mining companies working in their countries, whether this be in exploiting or exploring uranium resources. Some, such as a few Namibian and Nigerien NGOs, have been working on the issue for years, whereas others have only recently been confronted with uranium exploration and/or exploitation, as is the case with the Central African NGOs.

The training week was organized and partially paid by WISE Amsterdam, and was co-financed by various international organizations: Cordaid, NIZA, Eirene, SOMO and OxfamNovib. Other organizations, such as CRIIRAD, Greenpeace International and the Australian Conservation Foundation kindly contributed by allowing some of their uranium mining experts to be present as trainers in Tanzania.

Aims and background
The backgrounds of the participating organizations appeared to be remarkably diverse: they work on development issues, poverty alleviation, labor rights, human rights, peacekeeping, nuclear issues, and/or environment. A few of these organizations do not necessarily aim at stopping uranium mining operations, but would rather impose boundary conditions on uranium mining. They wish to ensure that local communities can give consent on whether or not uranium mining should take place on their land, that public participation is taking place during every step of the mining processes, that rights of local communities are respected, and that the communities at the very least gain significant economic benefits.

Most organizations, however, prefer to avoid any kind of uranium exploitation in their countries and keep the standpoint ‘Leave Uranium in the Ground’. Experienced NGOs claim that many years of uranium mining worldwide have shown that the expectations of great economic development and increased welfare do not actually become a reality for local communities. In the long term, uranium mining does not provide a single benefit for communities. The promises often made by governments and companies have proven to be empty. This view was clearly expressed by Australian activist Dave Sweeney when he quoted Aboriginal Senior Traditional Owner Yvonne Margarula: “None of the promises last, but the problems always do.“

Tanzania, being one of the countries where international companies are now eagerly exploring uranium resources, proved to be a suitable host for the uranium training week: many Tanzanian NGOs, journalists, and members of parliament showed their interest by attending and actively contributing to the training week. They had mostly been invited by the Foundation for Environmental Management and Campaign Against Poverty (FEMAPO). FEMAPO has already been working in the Bahi district of Tanzania, where currently uranium exploration is taking place. They have worked with the communities of the Bahi district, and has informed them about the environmental hazards of uranium exploration in their region. Like FEMAPO, its sister organization CESOPE is currently working on informing the Tanzanian public and the affected communities. Uranium mining is a substantial threat to the Bahi people, as their livelihoods often entirely depend on their natural environment.

Central African organizations ACAPEE and OCDN, as well as some other Central African NGOs which did not attend the training week, are critically following French multi-billion dollar corporation AREVA. Assisted by several foreign organizations, they put pressure on their government as well as on the company to increase transparency of revenues and mining contracts. Also the necessary Environmental Impact Assessment is critically being followed by ACAPEE.

Central African citizens are not familiar with uranium mining and the public is not informed about its hazards. The capital-based NGOs try to improve their communication with the Bakouma community, in whose region AREVA is exploring uranium. Communication is difficult in the Central African Republic (CAR) due to limited infrastructure, the remoteness of many areas, and differences in languages. Therefore, NGOs in the CAR not only scrutinize the most prominent decision-makers, but also continuously search for the best strategies to inform the public, such as by gathering with other NGOs, trying to find ways to physically reach the remote area of Bakouma, and using radio stations.  

Cameroonian organizations CED (Centre for Environment and Development) and RELUFA (Reseau de Lutte contre la Faim, the Network of Poverty Alleviation) showed impressive material on their campaigns in Cameroon. They have provided villagers in exploration areas with GPS devices and training on GPS use. Thus equipped, the villagers can create their own village maps, on which land use is indicated. Sacred sites, agricultural land, rivers: anything can be included in these maps. After mapping the region, the maps can be used as a tool for discussions with the company as the villagers can point out exactly what land is important to them. CED and RELUFA do not only wish to empower the villagers and lobby at government and industry, they also strongly feel the need to do baseline studies on soil, water, and air and will soon start measuring radiation levels with their newly acquired Geiger-Mueller counter.

Several NGOs from Nigers capital Niamey were inexperienced on uranium mining issues and learned much about radiation, company structures, and social issues. They have all decided to start spending more time on the issue and to start informing the public in their country. Niger has seen uranium exploitation for several decades. This has had impacts on the country’s geography, economy, and environment. However, the communities are not well-informed on radiation, and the general public has not benefited from uranium revenues. ROTAB, a network of organizations for transparency and budgetary analysis, is working on the international Publish What You Pay campaign and has lately been paying much attention to the extractive industries in Niger. GREN, which also aims at the extractive industries, also participates in the PWYP campaign. In the past, these organizations focused  on gold and oil extraction in Niger. The international peace advocacy organization Eirene is active in Burkina Faso, Mali, and Niger, and is now planning to start working on uranium mines with the organization GENOVICO. All have decided to increase their attention for uranium mining.

Organisation Aghir-in-Man was also present during the training. This NGO is based in the mining community of Niger and has worked exclusively on uranium mining over the past years. Aghir-in-Man has worked with several international NGOs in the past, whereby the last successful collaboration was with Greenpeace International and CRIIRAD, who published a report on the environmental pollution around Niger’s uranium mines in 2010. Aghir-in-Man draws attention to the issue internationally, but also organizes meetings with local communities on practical issues. As a result of meetings where women were informed about the dangers of washing their husbands’ dirty mineworkers clothes from the mine, women now refuse to wash uranium-contaminated clothes. The dusty clothes, that can contaminate people internally, are now being washed by the company at the mine.

In Malawi, the recently opened mine of Australian firm Paladin Energy has drawn attention of ActionAid Malawi and Citizens For Justice. They are keeping an eye on the developments in their country. Paladin Energy proves to be very non-communicative towards civil society: both the country offices in Malawi and Namibia and the headquarters in Australia have not responded to repeated WISE requests for interviews or email contact. That Paladins first concern is not its corporate social and environmental responsibility is not surprising if one keeps in mind the words of its CEO John Borshoff: “Australia and Canada have become overly sophisticated. They measure progress in other aspects than economic development, and rightly so, but I think there has been a sort of overcompensation in terms of thinking about environmental issues, social issues, way beyond what is necessary to achieve good practice.” Keeping in mind the shocking environmental pollution and neglect of Aboriginal rights in Australia by the uranium mining companies, Borshoff’s explanation that this Australian situation is already beyond ‘good practice’ makes one fear for Paladin’s corporate behavior when working in Africa. Not only has Paladin Energy managed to obtain very favorable contracts in Malawi, so that people’s rights are not guaranteed and the Malawi state does not make much profit from mining, the mine is also based close to Lake Malawi, upon which many people depend for its water and food. Activists fear contamination of the lake. CFJ and ActionAid try to inform and assist local communities and will do more research on a rumor about illegal nuclear transports from Malawi to Namibia. They are also keen on doing more radiological measurements themselves, something they have already done with river water recently.

Meanwhile, Earthlife Africa is working hard in South Africa and Namibia. Both countries have to deal with mine waste from uranium- and other mines, communities that are being exposed to radiation, and authoritarian governments that ignore the concerns of civil society. The limited knowledge of the public on mining hazards, along with a repressive political culture in both countries, proves it difficult for Earthlife and other NGOs to force governments and industry to mitigate environmental and social problems. Other countries can learn from South Africa’s problems when it comes to managing abandoned mines. South Africa has a long mining history: gold, platinum, chrome, manganese, diamonds and other metals were and are being exploited on a large scale. This has left behind a legacy: today, there are over 6000 abandoned mines in South Africa. These are not only dangerous to enter; they also cause great environmental problems. Many of them fill up with extremely acid water which contaminates ground water and river systems, and they have toxic and radioactive mine waste stored next to them. As the mining companies which owned them are no longer existing, the abandoned mines have now become the responsibility of the government. The extent of the problems, the impact on environment and communities, and the associated costs are so high that the government is reluctant to start working on tackling even the most urgent problems. South Africa’s Federation for a Sustainable Environment and Earthlife are continuously battling to hold the authorities accountable. The campaigns of FSE have long been neglected, but the lobbying now seems to have drawn some national and international attention to the issue and the issue is being discussed in parliament – these first steps can provide the South African NGOs with some hope.

Namibian human rights organization NamRights has observed Namibia change from a new and promising independent country, proud of its independence and wealthy with natural and human resources, into a country where government is letting its wealth being exploited to the benefit of a few individuals in the highest ranks of industry and government. A study by Labour Resource and Research Institute LaRRI in 2008 has shown that mineworkers in the Rossing uranium mine are suspecting their illnesses are related to their occupation. However, there is no possibility for them to go see a specialized medical doctor who is independent from the mine, and any claims towards company Rio Tinto are therefore no option. Unfortunately, government lacks the means and the willingness to carry out proper radiological measurements, and does not assist the sick people. There might be a role for NamRights to draw attention to these ill workers and community members, and remind Namibia’s uranium-keen government that they have a greater responsibility than just to attract wealthy international corporations to Namibia.

Inspired by the numerous examples of successful activism the NGOs will continue to work individually and together on uranium mining. Every country needs to find its own solution. Yet international NGOs can support, motivate, and strengthen one another. All NGOs mentioned in this article are more than willing to share their information and thoughts with you. Please contact them if you wish.

For freely available reports on uranium mining in Africa, please contact NIZA, SOMO, and WISE. WISE is preparing a full report of the training week, including all presentations. A copy can be obtained via WISE in January 2011. Also, SOMO and WISE are about to publish a report on revenues for African states, and will distribute an extensive publication on African uranium mines and their social and environmental impacts by February 2011.

Source: Fleur Scheele, WISE Amsterdam
For more information, contact: Marieke van Riet, WISE Amsterdam

About: 
Earthlife Africa

The end is near for the PBMR

Nuclear Monitor Issue: 
#714
6071
20/08/2010
WISE Amsterdam
Article

The Pebble Bed Modular Reactor. Remember? It was globally heralded as the perfect nuclear reactor: small, safe and cheap. Dozens would be built in South Africa alone and in 1999 the company expected to sell 30 reactors annually from 2004 on. Sometimes in the public opinion about the nuclear renaissance and new reactor types the PBMR was used if it was already in operation in South Africa or at least under construction.

Now, the South African government announced it is expected to close operations at PBMR (Pty) Ltd. finally 'within a few weeks'  (that is August). The company once planned to build up to 24 165-MW high-temperature gas-cooled reactor modules for state-owned utility Eskom and export the modular HTR worldwide, but hasn't built even the demonstration model.

The government has invested an estimated South Africa Rand 9 billion (US$1.23 billion at current rates) in PBMR Ltd. over the 11 years since it was founded as an Eskom subsidiary. PBMR Ltd. is formally owned by Eskom, the Industrial Development Corp. and Westinghouse, but they have put no equity in the company for several years.

In a July statement, the Department of Public Enterprises, which has responsibility for the PBMR company, said PBMR "has not been able to acquire additional investment in the project since government s last funding allocation in 2007, nor has it been able to acquire an anchor customer despite revising its business model in 2008/09." The company is operating on funds that were left over from the 2007 allocation and has downsized from about 800 staff to about 25. Although the PBMR website doesn't show anything about the current situation, it says there are "no career opportunities at the moment."

The company was set up in 1999 as Pebble Bed Modular Reactor (Pty) Ltd. to develop and deploy German technology it had acquired for small HTRs with coated pebble-shaped fuel elements. Besides British Nuclear Fuels plc (BNFL), Exelon, the largest nuclear fleet operator in the US, also made an early equity investment, and the company was broadly touted as the herald of a new nuclear age for the developing world based on small reactors that could be set up quickly under various site conditions. BNFLs stake was transferred to Westinghouse when the latter was sold to Toshiba. But the PBMR partners never agreed on a new equity structure and the company remained the property of the South African government.

The Department of Public Enterprises believes the R9-billion spent on the PBMR project has not been lost, as the skills developed "will contribute significantly in any future nuclear programs and save the country huge amounts of money in the process".

One of the critics, Stephen Thomas, professor of energy policy at the University of Greenwich in the UK, told the Cape Times that it was clear at least six years ago that the PBMR project was "going badly wrong. Yet the government continued to pour public money into it, indeed about 80 percent of all the money spent on the pebble bed was spent in the past six years"

Tristen Taylor, of Earthlife Africa, said " We hope that this will also mark the end of the South African government's love affair with nuclear energy and that taxpayer funds can now be spent on clean, proven and reliable forms of renewable energy".

Official planning in                                      1998    3-2007            2009

Start construction demonstration-phase        1999    2008/9             2013

Demonstration-reactor ready                         2003    2012                2018

First orders *1                                                       2004    2017                ?

First electricity by first reactor                        2008    2021                ?

*1 In 1998 it was expected that from 2004 on, annually 30 reactors would be ordered

 

Sources: Nucleonics Week, 29 July 2010 / Cape Times, 10 August 2010
Contact: WISE Amsterdam

About: 
WISE

In brief

Nuclear Monitor Issue: 
#708
29/04/2010
Shorts

Finland: building nukes for electricity export?
On April 21, the Finnish government proposed two new nuclear power plants. The parliament will make the final decision on the issue earliest in the summer, but most likely in the autumn. On both reactors will be voted separately - there are possibilities to have 2, 1 or 0 new nuclear plants. Building twe nuclear power units would lock Finland's energy consumption to unrealistic, artificially high levels, and are clearly aimed for electricity export. However, Parliament has taken the line that it opposes the construction of generating capacity for export purposes.

Minister of Economic Affairs Mauri Pekkarinen (Centre Party) insisted on April 21, that Finland would adhere to this principle of opposing the construction for export. But the Greens are accusing Pekkarinen of turning his coat on the matter by endorsing two new reactors just a year after saying that Finland’s need for new nuclear energy units was “zero, or one at the most”. “Now he is proposing two units on the basis of the same electricity consumption estimates. This certainly shows how poorly founded Pekkarinen’s proposal is”, Sinnemäki says. The Greens also point out that the forest company UPM, a part owner of TVO, has put forward the idea of electricity exports. “Nobody in Finland -not even the forest industry- has proposed such a fantasy in electricity production that this proposal would not mean export. It becomes clear even in all of the most daring consumption estimates. We simply cannot consume this much electricity.”

Environmental organisations are organizing a large anti-nuclear demonstration in Helsinki on May 8.
Helsingin Sanomat (Int. edition) 22 and 24 April 2010


Japan: Restart Monju expected in May.
The Monju prototype fast-breeder reactor, which was shut down in December 1995 after sodium leaked from the cooling system, is set to resume operations in May.  Fukui Governor Issei Nishikawa signaled his willingness to approve reactivation of the experimental reactor, located in Tsuruga, Fukui Prefecture, during a meeting with science and technology minister Tatsuo Kawabata and industry minister Masayuki Naoshima on April 26. In the 1995 incident, the reactor operator was heavily criticized after it was found to have concealed information about the accident. During the past 14 years or so that Monju has been in limbo, the operator has come under fire for delaying reports on alarm activation incidents and flawed maintenance work.

Under the government's plan, the next stage in the fast-breeder project will be the construction of a demonstration reactor, which is larger than Monju, around 2025. It would be followed by the development of a commercial reactor around 2050. But the outlook for the plan is bleak, to say the least.

Some 900 billion yen (US$ 9.6 billion or 7.3 billion euro) of taxpayer money has already been spent on the construction and operation of the Monju reactor. It will require additional annual spending of about 20 billion yen (US$ 215 million / 162 million euro).

More on the history and current status of Monju and Japan's fast breeder programm: Nuclear Monitor 702, 15 January 2010: "Restarting Monju – Like playing Russian roulette"
The Asahi Shimbun (Japan), 27 April 2010


Belene contruction halted until investors are found.
Belene construction was halted in search for Western strategic investors after Bulgaria dismissed an offer from Russia to finance the coming two years of construction with an option for a complete Russian take-over of the project. The Bulgarian government has opened a tender for a financial consultant to work out a new financial model for the project. This consultant is expected to be chosen in June 2010. On the basis of this new financial model, strategic investors will be invited for participation. After EU Energy Commissioner Günther Öttinger warned Bulgaria for the dependency that a fully Russian Belene project would create, Bulgarian Prime Minister Boyko Borrisov made it clear that Belene only will be continued if it can pay for itself and if it is developed under participation of European and/or US partners. Russia was not to expect more than a 25% participation, if any at all. In his straightforward way, Borissov characterised Belene as either a  European project or no project.

On 16 April, it was also announced that the Bulgarian Energy Holding, which was set up in 2008 to create a pool of assets that could lure possible lenders to the Belene project, will be dismantled before summer. Deputy Minister for Economy, Energy and Tourism Maya Hristova said that BEH was set up to the secure the construction of Belene by the assets generated in the holding, "but this is no longer feasible." She told the Bulgarian press agency BTA that the assets of all state-owned energy companies are of lower value than the estimated value of  Belene. Daily Dnevnik announced that there is currently a discussion to bring the electricity  assets of BEH, including the Kozloduy nuclear power plant and the Maritsa East power station under in state utility NEK and the gas assets in a seperate holding.
Email Jan Haverkamp, Greenpeace EU Unit, 26 April 2010


U-price low: "explosive growth in nuclear power hasn't yet happened". 
The spot price of uranium has dropped below US$42/lb (1 lb = 453.59 grams) through in April, down almost US$4 from the 2009 average of US$46 as, according to Purchasing.com, weakening demand has depressed transaction pricing. Lyndon Fagan, an analyst at RBS in Sydney Australia, tells Bloomberg that spot prices indeed have weakened in recent months because the explosive growth in nuclear power hasn't yet happened. Current uranium prices are well down from the levels reached in 2007, when the prices spiked to nearly US$140. Supply concerns drove the price up at that time, and while there's no guarantee that prices could once again reach those levels, such past performance does imply that the potential for such dramatic price moves is possible.

Meanwhile, Admir Adnani, CEO of US-based UraniumEnergy, tells Reuters that a renewed focus on nuclear energy and current mining shortfalls are likely to drive prices of uranium, higher in the coming years. "In the next two to three years, we will see a period of rising uranium prices," Adnani says. "There is absolutely no doubt that the nuclear renaissance and the construction of new reactors plus the existing reactor requirements will bring growing demand... and we need uranium prices to be higher for new mines to be built." But in the Canadian province of New Brunswick, for instance, only two companies have done exploration work over the past couple years, a notable drop from the 10 or so firms that were searching for uranium back in 2007, according to the Canadian Department of 

Natural Resources. www.purchasing.com, 14 April 2010 / Telegraph Journal (Canada), 21 April 2010


Regulators investigating Olkiluoto piping.
Nuclear safety authorities in Finland, France, the UK and US are assessing the significance of undocumented welding on primary circuit piping for the EPR reactor under construction at Olkiluoto, Finland. However, Petteri Tiippana, director of the nuclear reactor regulation department at the Finnish Radiation and Nuclear Safety Authority STUK, told Platts in an interview on April 8, that regulators from those four countries are not preparing a joint statement on the piping quality issue. He reacted on a statement made by a commissioner of French nuclear safety authority ASN,

The piping was manufactured by Nordon, a subcontractor to Areva, the French vendor which is supplying the nuclear part of the Olkiluoto-3 unit under a turnkey contract to utility Teollisuuden Voima Oy. Nordon, based in Nancy in eastern France, is a unit of the Fives group and has long been a major supplier of piping for nuclear power plants. In October 2009, STUK found that small cracks in piping made for the main coolant lines of Olkiluoto-3 had been repaired with welding procedures that were not documented. Tiippana said the piping is still in France and that analysis of the significance of the undocumented welding could be finished within several weeks. STUK will then do final inspections, probably before summer, he said. Until the piping is approved by STUK, it cannot be transported to Olkiluoto.The design of Areva's EPR reactor is under regulatory review for construction in the UK and the US.
Platts, 8 April 2010


Australian uranium for India?
Not that long ago, Australia took a firm stand against selling uranium to India (or any Non-Nuclear proliefration Treaty signatory for that matter): in January 2008, Australia’s new Labor government outlawed uranium sales to India. Stephen Smith, Australian foreign minister emphasizes that in saying in October 2009: “We have had a long-standing principal position which is not aimed at India, it is the long-standing position that we do not export uranium to a country that is not a party to the Nuclear Non-Proliferation Treaty,”

Now, just over a half year later, Australia is planning to change its domestic rules to allow India to import uranium from the country.

India is signing the Indo-US civilian nuclear agreement and many other civil nuclear agreements with different countries. The 46-member Nuclear Suppliers Group (NSG) has also granted a waiver to India in September 2008 allowing nuclear fuel from other nations. However, Australia being a member in that group, didn’t allow India to import nuclear fuel from the country. Now, South Australia’s Department of trade & economic development director Damian Papps said Australia would like to amend the current regulations to enable uranium export to India.
Press TV, 14 October 2009 / Spectrum, April 26, 2010


Further increase heavy forging capacity.
Known as a leader in the ultra-heavy forgings required for the highest capacity nuclear reactors, Japan Steel Works set about tripling its capacity and has completed its second press for ultra-large nuclear forgings. It has now completed the ¥50 billion (US$530 million, 390 million euro) first phase of the expansion with the installation of a new forging shop complete with heavy cranes, heat treatment facilities and the necessary 14,000 ton press.

JSW told World Nuclear News that the new shop was the core of the first investment phase and that the second ¥30 billion (US$320 million, 235 million euro) investment round should be completed in 2011. At that point, JSW said, it would have tripled the nuclear capability that it had in 2007 - enough for about 12 reactor pressure vessels and main component sets per year. The increase in capacity should be felt by mid-2012 as new components are planned to emerge from the factories. Muroran also manufactures generator and steam turbine rotor shafts, clad steel plates and turbine casings for nuclear power plants.

While JSW may be the current leader in the global market for large nuclear components, there are several other (Russian, Chinese and South-Korean) manufacturers tooling up to the same levels for domestic supply. Britain's Sheffield Forgemasters and India's Bharat Forge will join JSW as global ultra-heavy suppliers around 2014.
World Nuclear News, 1 April 2010


Switzerland: Canton slams radioactive waste plans.
Plans for a radioactive waste disposal unit in the canton of Schaffhausen has come under fire in a study published by the local government. The National Cooperative for the Disposal of Radioactive Waste outlined two possible sites for the unit: one in Zurich Weinland and one near Sudranden in the canton of Schaffhasusen. That’s just a few kilometers from the city of Schaffhausen, where 80 percent of the canton’s population live and work. The report published on April 21 says a disposal centre would have a detrimental effect on the town of Schaffhausen, and on the development of both the canton’s economy and population. The report estimates it would lose between 15 and 33 million francs in tax revenue a year and the population would drop by up to 5,000 people.
World Radio Switzerland, 21 April 2010


U.K.: Low-level radwaste in a landfill.
Five bags of radioactive waste from the Sellafield nuclear processing facility were dumped in a landfill site after a faulty scanner wrongly passed them as safe. Environment Agency inspectors have found one of the bags but is still searching for the other four at the Lillyhall landfill site near Workington, Cumbria. The bags contained waste collected in restricted areas of Sellafield where disposal of all items, including protective clothing, is strictly controlled because of the risk of radioactive contamination. The error was discovered by a member of staff who became suspicious when a scanning machine declared as safe a bag that had come from the restricted area. Staff checked the machine's records and found that five other contaminated bags had been passed as safe and sent to the nearby landfill site, which handles a mixture of household and industrial waste. A Sellafield spokeswoman was unable to say for how long the machine had been malfunctioning. The waste should have been sent for storage in concrete vaults at the Low Level Waste Repository near Drigg in Cumbria.

The incident may undermine the nuclear industry's plan to save billions of pounds by adopting lower safety standards for thousands of tonnes of low-level radioactive waste from decommissioned reactor sites. Several landfill sites have applied for permits to handle low-level waste.
Times online (U.K.), 26 April 2010


U.K. political parties and nukes.
The political party manifestos for the General Election show no surprises concerning nuclear policies - and they reveal the fundamental difference on nuclear issues between the Liberal Democrats and both the other two main parties. These difference will make for some tough bargaining in the event of a hung Parliament in which no political party has an outright majority of seats.

The Conservatives commit themselves to "clearing the way for new nuclear power stations - provided they receive no public subsidy". The party is also committed to the new Trident nuclear submarine system.

Under the heading 'Clean Energy' the Labour manifesto says "We have taken the decisions to enable a new generation of nuclear power stations" and the party is also committed to the Trident replacement.

The Scottish National Party wants Trident scrapped, rejects nuclear energy and the deep geological disposal of radioactive wastes.

The Liberal Democrats don't want a "like-for-like" replacement for Trident and promise a review of the proposals. They also reject new reactors "based on the evidence nuclear is a far more expensive way of reducing carbon emissions" than renewable energy and energy conservationAccording to the LibDem spokesperson on energy and climate issues, Simon Hughes, the curent government plans for a new fleet of nuclear reactors are based on a "completely foolish delusion". And he added; "they are too costly, wil take too long to build, will require government subsidy and will drain investment away from the renewable energy sector".  He says the party will not soften anti-nuclear stance.

General elections in the UK will be held on May 6.
N-Base Briefing 649, 21 April 2010 / BusinessGreen.com, 26 April 2010


Rand Uranium: no super dump tailings in Poortjie area.
South-Africa: following a successful protest march on April 23 by emerging black farmers and the Mhatammoho Agricultural Union, and the potentially affected landowners against the proposed super dump (centralized tailings storage facility -TSF) Rand Uranium decided to abandon the project. The protest march, the second in a few weeks, took place at the offices of Rand Uranium in Randfontein. Soon after the protest, Rand Uranium, which had proposed to establish the TSF within the Poortjie area on high agricultural land, issued a statement. The last paragraph of the document reads:  "Through the assessments, and in consideration of planning requirements of the City of Johannesburg, Area 45 is not considered appropriate for the long term TSF." The protest was against Site 45 (Poortjie area).  This means, Rand Uranium has abandoned its intention to establish a super dump in the Poortjie area. 

The proposed super dump would contain 350 million tons of uraniferous tailings and will be established on 1 200 hectares of land. The farmers and landowners claim that the public participation process was fatally flawed and that they were not consulted. It would have impacted the Vaal Barrage Catchment, a highly compromised Catchment. In terms of the Water Research Report No 1297/1/07 (2007) only 21% of the Vaal Barrage showed no evidence of cytotoxicy (i.e. toxic to human cells).  The Report suggests that the underlying problems of this catchment are largely due to heavy metals.  It furthermore states:  "It is clear that mining operations, even after they have been discontinued, are still having a major impact on water quality in the Vaal Barrage catchment, to the extent that it can no longer be compared with other natural water systems."
Emails Mariette Liefferink, 21 and 24 April 2010


U.A.E.: First nuclear site named. Braka has been named as the site for the United Arab Emirate's first nuclear power plant. Limited construction licence applications and environmental assessments for four reactors have been submitted.
The Braka site is in a very sparsely populated area 53 kilometers from Ruwais and very close to the border with Saudi Arabia. It is closer to Doha, the capital of Qatar, than to Abu Dhabi about 240 kilometers to the east. Dubai is another 150 kilometers along the coast. The Emirates Nuclear Energy Corporation (Enec) said Braka was selected from ten shortlisted sites, all of which were suitable for nuclear build, on the basis of its environmental, technical and business qualities.

Two requests have been made to the Federal Authority for Nuclear Regulation (FANR). One is for a site preparation licence for the four-reactor power plant to allow Enec to conduct non-safety related groundwork at Braka such as constructing breakwaters and a jetty. The other is for a limited licence to "manufacture and assemble nuclear safety related equipment."  In addition, a strategic environmental assessment for the project has been submitted to the Environment Agency - Abu Dhabi (EAD) addressing environmental impacts and mitigation including for construction work.

But since there is no civil society whatsoever, there will be no independent scrutiny of those documents.
World Nuclear News, 23 April 2010


Contract for ITER buldings.
The Engage consortium has been awarded the architect engineer contract for the International Thermonuclear Experimental Reactor (ITER) buildings and civil infrastructures. The contract, worth some €150 million (US$200 million), was signed by the Engage consortium and Fusion for Energy (F4E) on 13 April. F4E is the European Union's (EU's) organization for Europe's contribution to ITER. The Engage consortium comprises Atkins of the UK, French companies Assystem and Iosis, and Empresarios Agrupados of Spain. The architect engineer will assist F4E during the entire construction process, from the elaboration of the detailed design to the final acceptance of the works. The contract covers the construction of the entire ITER complex, including 29 out of a total of 39 buildings, site infrastructure and power supplies.

Seven parties - China, India, Japan, Russia, South Korea and the EU - are cooperating to build ITER, a 500 MWt tokamak, at Cadarache. The partners agreed in mid 2005 to site Iter at Cadarache. The deal involved major concessions to Japan, which had put forward Rokkasho as a preferred site. The EU and France will contribute half of the €12.8 billion (US$18.7 billion) total cost, with the other partners - Japan, China, South Korea, USA and Russia - putting in 10% each. Site preparation at Cadarache began in January 2007. The facility is expected to be in operation around 2018. As part of the reactor's phased commissioning, it will initially be tested using hydrogen. Experiments using tritium and deuterium as fuel will begin in 2026. Much later than expected a few years ago.
World Nuclear News, 15 April 2010

FUTURE SOUTH AFRICAN PBMR UNCERTAIN

Nuclear Monitor Issue: 
#704
6018
26/02/2010
Article

On February 8, South African Public Enterprises Minister Barbara Hogan has announced that the Pebble Bed Modular Reactor (PBMR) consortium will be no longer funded from 2013. In a phone call with Bloomberg she said the project has not attracted a long-term investor or customers and South Africa can no longer fund the PBMR. A decision on the future of the technology will be made in August, she said in a statement.

Laka Foundation - It is not yet clear what this budgetary falloff precisely means for the future of the PBMR in South Africa. However, it will be clear that there is not much left of the original ambitious nuclear energy program of South Africa to expand its nuclear production capacity from 1,800 megawatts now to 20,000 MW by 2025. This plan was considered as one of the strategically most important battlefields of the nuclear industries - one of the leading developing countries that many others should follow. The major blow to this plan came when the government declared that it was canceling its plans to build new generation pressurized water reactors (PWR) in December 2008, due to the escalating financial crisis starting from September 2008.

Thwarting the public funding to the PBMR has been welcomed by environmental groups. The South African director of the WWF climate change program said that for a long time the nuclear industry has received more state support than the renewable energy industry. He hopes that this cut in funding signals a policy commitment to investing in renewables.

The Pebble Bed Modular Reactor (PBMR) is a small type of a high-temperature gas-cooled reactor. It was expected in 1998 that work on construction of a PBMR Demonstration Power Plant at Koeberg would begin in 1999 and be complete before 2003 to allow commercial orders soon after. Eskom projected that the market could be about 30 units per year, about 20 of which would be exported. When the project was started in 1999 by the state-run power utility Eskom Holdings Ltd. and South Africa’s Industrial Development Corp. - owning together 85% of the PBMR (Pty) Ltd. - it was intended to build 24 PBMRs, each generating 110 MW(e). In March 2007, a PBMR (Pty) Ltd spokesman admitted that construction on the demonstration plant could not start before late 2008 or early 2009. And this turns out to be a highly optimistic estimate, again. In September 2009 experts expected that canceling the PWR program will delay the planned commercialization of the PBMR by up to four years to 2020. In the same month, on September 11 (2009), addressing the World Nuclear Association Annual Symposium in London, UK, Jaco Kriek, CEO of the PBMR company, said that South Africa’s PBMR Demonstration Power Plant (DPP) project has been indefinitely postponed due to financing constraints. He said the PBMR company has had to adopt a new business model “to reduce the funding obligations on the South African government.” Now, the company says it will reorganize and fire as many as 75 percent of its 800-strong workforce.

According to Uranium Intelligence Weekly (quoted in Nuclear Monitor 681) the projected costs of the 165MW(e) PBMR Demonstration Power Plant and the building of the pilot fuel plant at Pelindaba has recently doubled to some US$3 billion. These figures include the building of the fuel plant to manufacture the pebbles, as well as the building of demonstration plant, but do not cover the reactor's operations, decommissioning, waste disposal or insurance costs. Other sources (Bloomberg) mention that South Africa has spent US$970m. on the PBMR over the past eleven years. According to the anti-nuclear Pelindaba Working Group, the PBMR has already cost taxpayers over R16 bn (US$1.5 bn).

For the upcoming fiscal period, some US$470,000 (R3.6m.) has been set aside by the South African government, followed by US$490,000 (R3.8m.) for fiscal year 2011/12 and US$520,000 (R4.0m.) for 2012/13.

Earlier, on February 9, the PBMR company announced that Algeria had shown “a keen interest” in South Africa's pebble bed technology, and that a “high-level delegation” from Algeria had visited the country to “pursue the involvement in the field of nuclear, including showing a keen interest in the country's PBMR technology”. According to CEO Jaco Kriek, Algeria’s interest in PBMR technology “opens a real opportunity for two African countries to co-operate on nuclear.” South Africa has a long relationship with Algeria on co-operation in the field of nuclear energy and research. Kriek said that he would therefore very much welcome Algerian Atomic Energy Commission’s involvement in the PBMR Company.

So, despite the very precarious position of his company the CEO keeps on dreaming in finding partners to complete (or at least continue)  the PBMR project..

Sources: Bloomberg, 18 February 2010: “S. Africa Halts Funding to Pebble Bed Nuclear Project”/ Engineering News (S-Africa), 17 February 2010: “State scales back PBMR spending, to end allocations by 2013” / Nuclear Monitor 681, 18 December 2008: “ESKOM cancels PWRs: Major blow to nuclear expansion” / Business News, 9 February 2010: “Algeria eyes pebble-bed” / Independent Online, 18 February 2010: “PBMR company 'running out of money' “

Contact: Pelindaba Working Group, pelindabanonukes@gmailcom

About: 
Earthlife Africa

In brief

Nuclear Monitor Issue: 
#698
27/11/2009
Article

Uranium important for Australia?

Do you think uranium is an important factor for the economy of Australia? Well, in the ocean of Australia's mineral exports, uranium makes up little more than a drop. The minerals industry shipped about A$ 160 billion (US$150 bn, Euro 98 bn) in commodities last financial year, and less than 1 per cent of that was uranium. But the story of uranium has never been just about the money. A result of the country's long political unease with the uranium sector is the unique patchwork of regulations in different states. The federal Labor Party shed its 1984 ''three mines'' policy in 2007; this July, the former anti-nuclear campaigner and present Environment Minister, Peter Garrett, approved the country's fourth mine, FourMile, in South Australia. The policies of the states and territories, however, remain more ambivalent. South Australia permits both uranium mining and exploration, as does the Northern Territory. The Territory's resources minister, Kon Vatskalis, made much last week of his dedicated Chinese and Japanese investment strategy. ''We are expecting a number of significant announcements over the coming months,'' Vatskalis said, citing prospective investment deals across a number of commodities including iron ore, copper, lead, zinc, nickel, and uranium. In Western Australia, the state's Coalition Government has rescinded the ban on uranium mining. The Labor Opposition is committed to reinstating the ban. And in Queensland, the Labor Government permits exploration but not mining.

Sydney Morning Herald, 1 November 2009


Wanna have a laugh?

South Africa, plagued by chronic power shortages, plans to have 20,000 megawatts new nuclear capacity up and running by 2020, Energy Minister Dipuo Peters told a nuclear conference on November 20. "It's a huge project, and in any project situation you plan with the end in sight, so we are looking at 2020," she said.

Last year, state-owned power utility Eskom, which operates Africa's sole nuclear power plant with a total capacity of 1,800 MW, reported record losses and has no money for its aggressive expansion program that also included at least two 1,200 MW light water reactors (LWR). Eskom postponed a contract award for the LWR units last December.

Besides that, the development of the High Temperature PBMR reactor was plagued by setbacks, and Speaking at the World Nuclear Association (WNA) on September 11, PBMR CEO Jaco Kriek said construction of a prototype plant has been "indefinitely postponed" due to financial constraints. According to the Energy Minister, the South African government has since taken the lead in developing the next power station, saying it wants to develop a local nuclear industry in partnership with a technology firm rather than adopt a commercial bidding process used by Eskom.

Laughed enough? Oke, one more…

The Energy Collective.com, 12 September 2009 / Reuters, 20 November 2009


Petten: flashlight missing results in near-meltdown.

No, not a joke, or plot of the latest John Grisham book; it really happened at the research reactor in Petten, The Netherlands. It goes like this:

"On a winter night in December 2001 there was a power failure in North Holland, where Petten is located. The nuclear reactor is a research reactor, not a power reactor; it needs electricity to operate, for instance to pump cooling water. The reactor has a back-up cooling system to prevent meltdown of the core in case of a power failure. But this evening the back-up cooling system failed to come into action and the operators did not know what to do. There is an extra safety system by convection cooling for which the operators had to open a valve, but the control room was dark. When they reached for a torch that should have been there, it had been taken away by a colleague to work under his car. Trying their luck the operators put the valve of the convection cooling in what they thought was the `open  position. But then the lights came back on and the operators discovered they had actually closed the back-up convection cooling system. Had the power failure lasted longer it would have meant meltdown and a major disaster. When I learned about this some months later - they thought they could keep it secret - I did not think I could take responsibility any longer and I resigned from the ECN."

This is one paragraph in a more philosophical book ('Darwin meets Einstein') which was published on November 23. Especially this section got some attention (although not as much as expected), also because the nuclear regulator (Kernfysiche Dienst) did mention it on a list of accidents in 2001 (in December 2002), but was clearly not informed about the seriousness and possible consequences of the accident stating that "there has not been an unsafe situation".

Laughed enough now? Then back to work!

Laka Foundation, 24 November 2009


Economics don't add up.

Building new reactors in the UK doesn't make financial sense for companies according to a new study by leading investment analysts Citigroup. Developers face five major risks according to the report - planning issues, construction, the price of power, operational risks and decommissioning, adding that the Government has only taken action on planning which is the least important. The Citigroup analysts says the risks are unacceptable to the private sector.

Three of the risks, construction, power price and operational, "are so large and variable that individually they could each bring even the largest utility company to its knees financially, This makes new nuclear a unique investment proposition for utility companies."

The UK Government's stated policy is that the private sector must accept full exposure to these three risks, but the reports says "nowhere in the world have nuclear power stations been built on this basis." The Citigroup report says the Government will have to change its position to see new reactors being built. Developers are likely to want financial guarantees, minimum power prices and other measures.

Read the full report at www.citigroupgeo.com/pdf/SEU27102.pdf


Nuclear madness reaches Finland.

The cargo ship Happy Ranger made port in Finland on November 18, carrying its cargo of steam generators from France, intended for a nuclear reactor under construction at Olkiluoto. In addition, it is also carrying a protest camp, complete with eight Greenpeace activists from Finland, France, Germany and Sweden. Greenpeace is calling for  the plant's construction to be halted. "Areva said if we wanted to inspect the cargo we could have just asked," said Lauri Myllivirta, Energy Campaigner for Greenpeace Nordic, on board the Happy Ranger. "This isn t about inspections. The official inspector has already found over 3,000 technical and safety deficiencies during the construction of this plant. Minister Mauri Pekkarinen, who is responsible for nuclear power, must end the construction work immediately. These  generators should be sent back to France." Six activists boarded the Happy Ranger on November 16, to highlight how the decision to opt for dangerous nuclear reactors undermines effective climate protection. One day later, on Noember 17, they were joined by a second team. Relations with the captain and crew have been positive.

Greenpeace press release, 18 November 2009


Australia: “No Uranium for India”.

Autralian Prime Minister Kevin Rudd doesn't consider lifting a ban on uranium sales to  India. India remains eager to buy Australian uranium but the Rudd Government overturned a previous Coalition government decision to let sales go ahead even though New Delhi hadn't signed the nuclear non-proliferation treaty. The issue was expected to be canvassed again during Rudd's visit to India, but Mr Rudd indicated Australia had no intention of budging from its position. "Our policy remains governed by the provisions of the non-proliferation treaty. That has been the case in the past," he said in New Delhi on November 11. "The non-proliferation treaty, and our policy in relation to it as underpinning our attitude to uranium sales, is not targeted (at) any individual country." However, Australia, through its membership of the Nuclear Suppliers Group, was instrumental in getting international support for the deal struck between India and the U.S.

The Herald Sun (Australia), 13 November 2009

S-Africa: Eskom: record loss; PBMR "indefinitely postponed"

Nuclear Monitor Issue: 
#694
5971
17/09/2009
WISE Amsterdam
Article

Eskom, South Africa's state-owned utility, has reported a record annual loss and has warned of a funding gap for an expansion program needed to prevent a repeat of the blackouts the country experienced in 2008. The company, which supplies about 95% of South Africa's electricity and more than 60% of Africa's, reported a loss of 9.7 billion rand (US$ 1.25 billion) for the year that ended 31 March. In the previous year, Eskom made a loss of 210 million rand (US$ 27 million).

The utility foresees a funding shortage of some 80 billion rand (US$ 10 billion) for its expansion program aimed at reducing the risk of power shortages. In January 2008, as domestic supply reached its limit, South Africa suffered crippling blackouts and electricity exports to neighbouring Botswana and Zimbabwe were stopped. This led to a wider grid failure affecting Zambia.

In August 2009, Bobby Godsell, chair of the utility, noted, "We need to mobilize greater equity resources to fund the build program. The government has already provided 60 billion rand (US$ 8 billion) in a loan with equity characteristics. Government revenues are likely to be severely constrained in the near future. We need to find other sources of expansion funding, perhaps in the form of a development bond that will enable South Africans to invest in the expansion of our country's energy system."

"The capital costs of our build program have escalated considerably," Godsell added.

"Prior to the recent global economic crisis, construction costs were escalating worldwide and across all industries. The global recession has created new market circumstances."

And the nuclear program?

In early 2007, Eskom's board approved a plan to boost electricity output to 80 GWe by 2025. This included the construction of 20 GWe of new nuclear capacity, which would see the contribution of nuclear energy grow to 25% from the present 5%. The plan for the nuclear new-build program would kick-start with up to 4 GWe of pressurized water reactor (PWR) capacity, to be constructed from about 2010 with commissioning in 2016. Five sites in the Cape Province were under consideration, although the most likely initial site (Nuclear-1) would be that of Koeberg, the site of South Africa's only existing nuclear power plant. The Nuclear-1 project was established after the very ambitious scenario for development and construction of the Pebble Bed Modular Reactor (PBMR) failed to meet even the most modest time schedule.

Having already made "considerable progress" in the process to procure a PWR, Eskoms board of directors decided in December 2008 not to proceed with the project due to ‘the magnitude of the investment’; the companies own financial constraints and the global economic situation. The investment was increasingly impossible to justify, with a plunging rand, global lines of credit frozen, and a new government with potentially different priorities.

On September 11, addressing the World Nuclear Association Annual Symposium in London, UK, Jaco Kriek, CEO of the PBMR company, said that South Africa's pebble bed modular reactor (PBMR) Demonstration Power Plant (DPP) project has been indefinitely postponed due to financing constraints. He said the PBMR company has had to adopt a new business model "to reduce the funding obligations on the South African government."

Sources: World Nuclear News, 28 August 2009 / Nuclear Monitor 681, 16 December 2008: ‘Eskom cancels PWRs; major blow to nuclear expansion’ / World Nuclear News, 11 September 2009
Contact:  CANE, Coalition Against Nuclear Energy South-Africa, Tel: +27-72 628 5131, Email: caneoffice@cane.org.za

In brief

Nuclear Monitor Issue: 
#683
12/02/2009
Shorts

South-Africa: PBMR Ltd. in trouble.

 According to a PBMR Ltd press release, the global financial crisis and related impact on funding – particularly on the South African electricity utility Eskom – has prompted the Pebble Bed Modular Reactor company to "consider near-term market opportunities based on customer requirements  to service both the electricity and process heat markets", as they call it. Basically it wil be a shift towards non-power options. One of the considerations is the modification of the design planned for the Demonstration Power Plant project at Koeberg near Cape Town to also service potential customers such as the Next Generation Nuclear Plant (NGNP) project in the US, which is funded by the US Department of Energy, oil sands producers in Canada (to produce the temperature and associated pressure needed to extract bitumen from oil sands) and the South African petro-chemical company Sasol (to either produce process steam and/or hydrogen to upgrade coal products). Another potential application is the use of the PBMR’s waste heat for desalination.

According to Jaco Kriek, CEO of PBMR (Pty) Ltd, discussions are underway with suppliers to put certain contracts on hold "to prevent unnecessary spending", although he emphasises that no contracts have been cancelled. But is is clear that business is not running smoothly (nothing new one can argue). The development of the PBMR is way behind schedule and in December Eskom cancelled the construction of pressurized water reactors (see Nuclear Monitor 681, 18 December 2008).

Press release PBMR Ltd, 5 February 2009


Japan: Nuclear industry rebuked for misleading advertising.

On 25 November 2008 the Japan Advertising Review Organization (JARO)  sent a letter to the Federation of Electric Power Companies of Japan  (FEPCO) regarding a complaint concerning an advertisement placed by  FEPCO in a Japanese magazine in April 2008.

The complaint claimed that the following words in FEPCO's advertisement  were incorrect and inappropriate: "Nuclear power ... is a "clean way of producing electricity", which  does not release CO2 when generating electricity." The complaint pointed out that these words could mislead consumers.

JARO judged that the word "clean" does not fit well with nuclear   energy. It said that many consumers would have misgivings about the  claim that nuclear energy is "clean", on the sole grounds that it does  not emit CO2 during electricity generation, when there is no  accompanying explanation about safety or radioactive waste. JARO  recommended that claims that nuclear energy is "clean", without  adequate explanation of safety and the effect of nuclear energy on the  environment, should not be made in future.

For most people JARO's conclusion is plain common sense, but it is   refreshing to see the nuclear industry rebuked by an advertising watch  dog for misleading advertising. JARO's letter was supposed to be confidential, but it was reported in  the media.

CNIC, 6 February 2009


Asian Development Bank Energy Policy Paper.

The Asian Development Bank will maintain its current policy of non-involvement in the financing of nuclear power generation. That is the conclusion in the Banks's Energy Policy Paper, published in January 2009. ADB writes (page 30/31):  "Nevertheless, in spite of its sustainable and operational benefits, nuclear power development faces a number of barriers, such as public concerns related to nuclear proliferation, waste management, safety issues, high investment costs, long lead times, and commercial acceptability of new technologies. Overcoming these barriers is  difficult and open public debate will be required to convince the public about the benefits of nuclear power. MDBs have traditionally avoided financing nuclear power plants. In the context of the former Soviet Union states, the EBRD¹s current energy policy includes financing safety measures of nuclear plants, decommissioning and environmental rehabilitation, and promoting an efficient nuclear regulatory framework. In view of concerns related to nuclear technology, procurement limitations, proliferation risks, fuel availability, and environmental and safety concerns, ADB will maintain its current policy of non-involvement in the financing of nuclear power generation."

http://www.adb.org/Documents/Policies/Energy-Policy/W-Paper-Energy-Polic...


Pakistan: Khan released from house-arrest.

On February 6, a Pakistani court freed Abdul Qadeer Khan from house arrest, lifting the restrictions imposed on him since 2004 when he publicly confessed to running an illicit nuclear network. Khan, 73, considered in the West as a rogue scientist and a pariah who sold technology to North Korea, Libya and Iran, is revered as a national hero in Pakistan for his role in transforming the country into a nuclear power.

The ruling to set him free seemed as much a political decision as a legal one, intended to shore up support for the government of President Asif Ali Zardari, which has been derided in the Pakistani press as being too close to the U.S. The government has been under intense domestic pressure to free Mr. Khan, and that outweighed the backlash that Mr. Zardari knew the action would cause in Washington. The ruling was accompanied by a secret agreement between Mr. Khan and the civilian government, the contents of which were not disclosed, which may continue to place restrictions on him. It was not entirely clear whether Mr. Khan would be free to leave the country.

The Foreign Ministry said Pakistan had investigated Khan's past proliferation, shared its findings with the IAEA, and put in tight controls to prevent anything similar from happening again. "A. Q. Khan is history." The US State Department condemned the move: “He’s still a proliferation threat. We’re very troubled by this.”

The civilian government had eased the restrictions placed on the scientist in 2004. Right from the time of Khan's confession, the US has been persistently demanding permission to question him on his alleged proliferation activities. Pakistan has been equally consistent in denying this permission.

New York Times, 6 February 2009 / AP, 8 February 2009 / The Hindu, 9 February 2009


ITER could cost twice as much as budgeted.

According to the British newspaper The Guardian, the experimental ITER fusion reactor could cost twice as much as governments had planned for. The project, which absorbs almost half of Britain's energy research budget (!), will test complex machinery needed to make the world's first operational fusion power plants. ITER was originally planned to cost €10bn, but the rising price of raw materials and changes to the initial design are likely to see that bill soar. The warning came as scientists gathered in Finland to unveil the first component of the reactor, which will effectively act as its exhaust pipe. The reactor is currently expected to take nearly 10 years to build and is scheduled to be switched on in 2018.

The Guardian (UK), 29 January 2009


Ukraine to join International Uranium Center.

The Russian government has approved a request by the Rosatom corporation for Ukraine to join the international uranium enrichment project set up by Russia and Kazakhstan. The International Uranium Enrichment Centre would see uranium from member countries enriched at Angarsk in Russia under international supervision. The scheme is not yet finalised, but in theory it would offer member countries assured supplies of nuclear fuel under some sort of arbitration by the International Atomic Energy Agency (IAEA). An additional possibility is that such a scheme would take back highly-radioactive used nuclear fuel from client countries for reprocessing and recycling or for permanent storage.

The concept of an international fuel cycle has come to the fore in recent years partly due to suspicions that Iran's uranium enrichment facilities were once part of an undeclared nuclear weapons program. Countries that agree to abide by the global non-proliferation regime and within which the IAEA is confident nuclear power is only used peacefully would be guaranteed supplies of uranium fuel. The theory is that those countries would never need to develop their own uranium enrichment or reprocessing facilities, which otherwise could potentially be misused for weapons production.

The international uranioum project is only one of the several Multilateral approaches, the US GNEP (Global Nuclear Energy Partnership) and the IAEA Fuel Bank, being two other initiatives.

World Nuclear News, 10 February 2009


Spain: no new reactors. 

On January 21 Spain reaffirmed its policy of not commissioning new nuclear power plants a day after its biggest utility unveiled plans to build them in Britain, while repeating pledges to boost renewables and save energy.  "There will be no new nuclear plants," Spain Industry Minister Miguel Sebastian told journalists when asked to comment on Iberdrola's joint venture with British companies to build nuclear power stations.  Sebastian noted that Spanish energy consumption per head was 20 percent above the European average. "Saving 20 percent would be the equivalent of doubling the number of nuclear power plants. It seems easier and cheaper to me," he said. "Furthermore, it (saving) is immediate, whereas nuclear plants take 15 years. There is no controversy, no waste or security problems, nothing," he added.

Spain's government has said it may extend the working lives of the country's eight ageing nuclear power plants. Operating permits for seven of the plants are up for renewal between this year and 2011, or well within the mandate of Jose Luis Rodriguez Zapatero's Socialist government. Spain's nuclear power plants supply about 7,300 megawatts and wind farms now have the capacity to generate more than 16,000 MW due to a boom in renewable energy, (but in practice provide less).

Reuters, 21 January 2009


New Nuclear madness in Britain.

The UK Nuclear Decommissioning Authority (NDA) has  announced that it expects to nominate land near Sellafield, Wylfa, Oldbury and Bradwell, for  consideration under the Government’s Strategic Siting Assessment (SSA) process to identify sites suitable for nuclear new build. Whilst the NDA is not proposing to develop new nuclear plants itself and will not seek planning permission, it expects to nominate land into the SSA process in order to enhance the value of its land and in turn generate income which will help fund the decommissioning programme.

NDA, 23 January 2009

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