USEC Seeks Extension

USEC announced that it is working to extend the operation of the Paducah Gaseous Diffusion Plant beyond May 2012 and expects a decision during the first half of 2012.

A story in the Paducah Sun stated that USEC will base its decision to extend operations upon economic considerations and the ability of the plant to operate profitably. The company is actively negotiating with the Tennessee Valley Authority (TVA)  for power to operate Paducah beyond mid-2012 when USEC's  agreement with TVA expires. Scott Brooks, TVA spokesman in Knoxville, Tenn., said the extension ensures access for USEC to TVA’s transmission facilities beyond May 31, but it doesn’t guarantee power delivery beyond then

USEC is also examining the potential of enriching a portion of the Department of Energy's (DOE) depleted uranium stockpile. Depleted uranium is a by-product generated during enrichment.  Given the current price of uranium, the federal government could generate substantial revenue by re-enriching portions of the depleted uranium at Paducah to the level of natural uranium.

Enriching the depleted uranium at Paducah would reduce DOE's costs of ultimately disposing of the depleted uranium and would create a valuable asset, natural uranium, that could help fund DOE's Environmental Management cleanup program, which includes the gaseous diffusion plants in Paducah, and Piketon, Ohio. Sale of surplus DOE uranium can be implemented without an adverse material impact on the domestic uranium industry.

Steve Penrod, Paducah plant general manager and USEC vice president said "Re-enrichment would reduce DOE's decontamination and decommissioning costs while generating revenue for the federal government and maintaining 1,200 good, local jobs. From the American taxpayers' standpoint, it makes a lot of sense to extract the valuable uranium; and the time to act is now while Paducah's capacity is available and uranium prices are strong."

USEC recently announced that it has reached a new labor agreement with the United Steel Workers Local 550.  The contract, which runs through July of 2016, will ensure a well-qualified workforce is in place to support the efficient operation of the Paducah plant.