Archive for the ‘USEC’ Category

Uranium company USEC to go bankrupt

December 29, 2013

Uranium company USEC says expects to file for bankruptcy  Dec 16, 2013 Dec 16 (Reuters) – USEC Inc, a supplier of enriched uranium for commercial nuclear power plants, said it expected to file for bankruptcy protection as part of a deal with its bondholders, sending the company’s shares down as much as 52 percent.

USEC, which has been struggling to fund projects and has posted losses for the past four quarters, said it expected to file a prearranged Chapter 11 petition in the first quarter…….

The company said in November that government funding for its $350 million American Centrifuge Project in Ohio would end in January.

The project, which is 80 percent funded by the U.S. Department of Energy (DOE), is designed to produce low-enriched uranium used to make nuclear fuel. It was scheduled to be completed this month.

USEC wound down operations at another uranium enrichment plant earlier this year. The company is in the process of handing over the plant in Paducah, Kentucky to owner DOE.

Although power companies are building five reactors in southeastern United States, nuclear power generation is expected to decline. This will lower demand for uranium…

Moreover, uranium prices are yet to recover after they plummeted following the March 2011 meltdown at Japan‘s Fukushima Daiichi atomic power plant…..http://uk.reuters.com/article/2013/12/16/usec-bankruptcy-idUKL3N0JV2CI20131216

Taxpayers ripped off big time by USA’s Uranium Center of Excellence

August 4, 2013

The “excellence” of this facility was that the radioactive garbage was green-washed as “recyclable,” and Ohio voters were also duped by the promise that it would bring hundreds of jobs, when the final tally was only two full-time inventory managers. I suppose that if spent fuel storage had been added, it would have been called the Center for Real Awesomeness with Plutonium.

Many of the same contractors who had been paid to haul the excellent garbage in were then paid a second time to haul the excellent garbage out in a less-than-excellent shell game that meant lucre for an elite group of crappy corporations. 

Uranium Titan Tumbles  EcoWatch July 12, 2013  By Geoffrey Sea“…….Excellent Extortion Recent developments at Piketon and Paducah make no sense at all without understanding that the working national plan for how to deal with the outmoded gaseous diffusion plants and their massively contaminated sites has been to convert both into “national sacrifice” waste repositories. But you won’t find that plan in any Federal Register notices or Environmental Impact Reports. Rather, it’s the subtext of a hundred different records of decision and formal notifications. The new way to evade those nuisance environmental compliance requirements is for federal agencies and funded corporations to simply not announce what they intend to do.

Exploiting exclusive lease provisions arising from the USEC Privatization Act, aided by exceptionally lousy government negotiating under the Clinton and G.W. Bush administrations, the anticipated waste enterprises at Piketon and Paducah were to be operated at a profit by USEC and its subsidiaries as they “diversified” away from the overly-competitive enrichment business back toward lucrative federal contract work. In accord with this master plan, a “Uranium Center of Excellence” or UCE was established at Piketon in the early 2000s, which collected uranium scrap waste from all over the country, including large shipments from the “cleanup” projects at Paducah, KY; Fernald, OH; and Hanford, WA.

The “excellence” of this facility was that the radioactive garbage was green-washed as “recyclable,” and Ohio voters were also duped by the promise that it would bring hundreds of jobs, when the final tally was only two full-time inventory managers. I suppose that if spent fuel storage had been added, it would have been called the Center for Real Awesomeness with Plutonium.

But when the spent fuel storage plan was ditched quietly by the Obama Administration as an impediment to future electoral success in the Buckeye State, the Uranium Center of Excellence stuck out like a radioactive thumb. Many of the same contractors who had been paid to haul the excellent garbage in were then paid a second time to haul the excellent garbage out in a less-than-excellent shell game that meant lucre for an elite group of crappy corporations. Some of the uranium that had been trucked from Paducah to Piketon has been trucked back to Paducah, just as that facility was being readied for closure and alleged “cleanup.” The mother-lode of excellent uranium trash has been moved en masse to a new UCE at Oak Ridge, TN, which curiously seems to have not much going on in the way of human activity…….http://ecowatch.com/2013/uranium-titan-tumbles/

USEC’s centrifuge plant a financial and environmental disaster

August 4, 2013

Despite public funding, no governmental process is contemplated for gathering or disseminating data on the commercial worthiness of USEC’s centrifuges, because that answer is already widely known: The technology at issue is forty years old and out of date…… doesn’t produce anything anymore and it never will

the “American Centrifuge” project (ACP)  was never more than a false front, a mechanism for wrangling government bailout after government bailout, while the rock-red company waited for a Republican administration that would approve its audacious waste storage plans.

That team included Iraq War architect Richard Perle and a physics professor whose only claim to fame was in pushing centralized storage solutions for spent nuclear fuel. His name was Ernest Moniz. (left)

Uranium Titan Tumbles  EcoWatch July 12, 2013  By Geoffrey Sea ”……The Un-American Centrifuge Plant  Created first as a government corporation in response to a mismanagement scandal at the U.S. Department of Energy (DOE) in the 1990s, USEC was privatized in 1998. The USEC Privatization Act, premised on delusional Thatcherite ideology, placed two solemn obligations on the respective parties in the split: The Department of Energy, though continuing to own the land and facilities with which USEC operates, had to stay out of the business of uranium enrichment; USEC, while free to conduct its business as a private corporation, had to use its free access to public land and resources to develop advanced uranium enrichment technology and improve the U.S. position in the global enrichment marketplace.

Now those statutory goals can only bring a ROFLMAO reaction. USEC has become a wholly-dependent ward of the Department of Energy, which effectively makes all the big “business” decisions that concern enrichment, and USEC has defaulted on any credible effort to deploy a domestic advanced enrichment technology. Yet the Privatization Act remains on the books, its provisions violated cavalierly but with no efforts at repeal, like metropolitan municipal laws about donkey carts and Sunday dancing.

The basic and shocking truth about USEC, which now ought to be celebrating the fifteenth anniversary of its privatization, is that the company, ballyhooed as “vital for national security” by members of Congress and local chambers of commerce, doesn’t produce anything anymore and it never will. It enriches no uranium, its government-granted sweetheart deal to market Russian warhead uranium expires at the end of this year, and its “American Centrifuge” project (ACP) at Piketon, Ohio, has become a parody of patriotism, so outpaced by Russian, European, Australian and Iranian competitors that the company can’t whip up enough whirl on a centrifuge machine to spin a cotton candy cone for the USEC anniversary.

ACP was scandalously licensed by the Nuclear Regulatory Commission (NRC) for construction and operation in 2007, and $520 million of bonds were issued to finance that construction, all premised on plant completion between 2011 and 2013. Now past the projected commercial opening date, not only has construction of a full-scale plant not neared completion, it hasn’t really been started, and estimated completion costs are now about twice what they were in 2007.

A supervisor on the project told me that most of the initial expenditure, affording USEC a hefty tax write-off it’s already taken, went to replace the roofs on the pre-existing buildings, apparently to ready those buildings for some use other than a centrifuge plant. That actually makes sense because USEC has never demonstrated possession of a commercially-competitive centrifuge technology ready for deployment, and has resisted that eight-year overdue demonstration like the legendary Count Dracula avoiding a mirror. And for precisely the same reason: If USEC were forced to complete a demonstration, it would only reflect the vacuity of the project. Imaginary monsters cast no reflection.

A so-called “Research, Development and Demonstration” (RD&D) projects, now being “completed” at Piketon with 80 percent federal funding, is only more smoke and mirrors, minus the mirrors, because the program involves no actual research, development, or demonstration of commercial viability. If completed, the project will only demonstrate that USEC centrifuges can spin without exploding, like a toaster demonstration that shows glowing coils but fails to produce any toast.

Despite public funding, no governmental process is contemplated for gathering or disseminating data on the commercial worthiness of USEC’s centrifuges, because that answer is already widely known: The technology at issue is forty years old and out of date, a fact confirmed by an active proposal from GE-Hitachi to use their molecular laser enrichment technology to extract usable uranium from USEC’s own old waste product at the Paducah site, a proposal that has brought no counter-offer from USEC. The real purpose of the “RD&D” project at Piketon is only to extend out the schedule of USEC’s galactically-embarrassing inevitable collapse.

This is no NIMBY attitude, though the centrifuge project is literally in my backyard. (My property has a one-mile long fence line with the USEC-leased portion of the DOE reservation). I’m the one who’s been telling anti-nuclear activists for nine years to stop directing their attacks at a centrifuge plant, because no centrifuge plant will ever happen here. I’d call the American Centrifuge Plant a pipe dream, if its pipes had any more reality than Bush’s “aluminum tubes.”

That other intended use of the so-called “centrifuge” buildings at Piketon became clear from the outset in 2007, when the Bush DOE, led by an assistant secretary who had formerly been Chief Operating Officer of USEC, pushed to make Piketon a storage center for the nation’s languishing stockpiles of spent nuclear fuel. USEC had purchased the leading American spent fuel storage company, and used its DOE-lease and NRC-license as Piketon place-holders, waiting to ditch its unviable centrifuge project for a far more lucrative federal contract warehousing nuclear waste. USEC had been given virtually unregulated and unconstitutional control of the federal sites at Piketon and Paducah, on the single condition that the company proclaims, with no means for verification, that it is developing an “advanced” uranium enrichment technology at those sites. Had John McCain won the 2008 election, USEC might have cashed in big by turning Piketon into the world’s largest nuclear dump.

That was not to be, however, and now USEC is stuck having to continually say it will build an enrichment plant that the company never had the technology, financing, or motivation to build. Politicians and the media have a hard time comprehending it, but the ACP project was never more than a false front, a mechanism for wrangling government bailout after government bailout, while the rock-red company waited for a Republican administration that would approve its audacious waste storage plans.

That was Plan A for the Piketon A-Plant, until the company just ran out of steam. False-front hi-tech deceptions can get expensive. ACP taxpayer funding was utilized as a bridge to USEC’s intended diversification, which is exactly the strategy that its 2002 team of new “strategic advisors” recommended. That team included Iraq War architect Richard Perle and a physics professor whose only claim to fame was in pushing centralized storage solutions for spent nuclear fuel. His name was Ernest Moniz. http://ecowatch.com/2013/uranium-titan-tumbles/

Uranium enrichment company gets handout from USA govt

June 24, 2012

“The real risks of this nuclear bailout is for taxpayers, who will be on the hook for questionable government handouts that are worth more than the entire company,”

Energy Department Steps in to Help Uranium Enrichment Company, NYT, By MATTHEW L. WALD, June 13, 2012, WASHINGTON — The Energy Department announced Wednesday that it was stepping in to shore up an ailing company it created in the 1990s to privatize uranium enrichment,calling the rescue vital to maintaining nuclear weapons and national security.  The goal is to help the company, USEC, once known as the United States Enrichment Corporation, finish development work on a plant in Portsmouth, Ohio, that uses a new kind of centrifuge that the Energy Department hopes will leapfrog over existing European technology.

The department is taking control of tons of uranium left over from USEC’s enrichment operations that is considered to be waste and is thus listed by the company as a liability. That will in effect add $88 million to the company’s balance sheet, officials said.  The aid was granted in anticipation of approval of the deal in Congress, where the nuclear weapons argument resonates. The administration hopes that lawmakers will grant its request for substantially more aid to the company, perhaps an additional $190 million or so, department officials said….. Representative Edward J. Markey, Democrat of Massachusetts, criticized the rescue plan. “The real risks of this nuclear bailout is for taxpayers, who will be on the hook for questionable government handouts that are worth more than the entire company,” he said.

USEC has been seeking a $2 billion loan guarantee to build a full-scale enrichment plant,  but the Energy Department has said that it was not certain that the technology was ready.  http://www.nytimes.com/2012/06/14/science/earth/energy-department-steps-in-to-help-uranium-enrichment-company.html

Nuclear fuel plant can’t get loan guarantee

January 29, 2012

‘Crunch time’ at troubled nuclear fuel plant Washington Post By Steven Mufson,   January 13 U.S. Enrichment Corp., which produces fuel for nuclear power plants, is having its own sort of meltdown.

Disillusioned investors have wiped out 95 percent of the company’s market value since 2007. Standard & Poor’s has saddled it with a dismal CCC-plus credit rating.  (more…)

Uranium mining companies share losses average 27% over past year!

October 9, 2011

Over the last month, these companies have lost between 25 and 29 percent, and they have lost between 57 and 84 percent so far this year. These significant losses proliferate uranium miners and producers, as can be seen from the Global X Uranium ETF (URA), which tracks the Solactive Uranium Index and is down over 60% so far this year…..

An Abysmal Month For Uranium Producers Extends Their 2011 Pain, Seeking Alpha 4 Oct 11, The uranium industry is not what it used to be, nor are the share values of the uranium producers. This may well go down as the worst year for uranium in the modern era, even though several nuclear power experts continue to claim that uranium use is sensible and safe.

This first quarter of 2011 started off with Japanese nuclear concerns following the destruction caused by the earthquake and tsunami that hit the nation, and uranium prices entered a tailspin shortly thereafter. In the wake of tsunami, Germany opted to discontinue nuclear power plant development and reveal plans to eventually eliminate nuclear power as an energy source.

It also appears likely that Japan may be hesitant to build more nuclear power plants in the near future. For many years, Japan and Germany have been significant users of nuclear power. This perceived vacuum to demand weakened the price of uranium. It also weakened the shares of those companies that produce and/or provide uranium…..

In the third quarter, which just ended last week, uranium and its producers continued to drop along with the broader market, only mostly to a broader extent as the investment was deemed more and more speculative. Most uranium producers ended the third quarter at their 2011 lows.

Below are the 1-month, 3-month, 6-month, and 2011-to-date performance rates for several companies that mine and/or provide uranium for energy production:

Cameco Corp. (CCJ)

  • 1-month: -23.12%
  • 3-month: -34.67%
  • 6-month: -43.28%
  • 2011-to-date: -57.10%

Denison Mines Corp. (DNN)

  • 1-month: -39.35%
  • 3-month: -49.18%
  • 6-month: -62.25%
  • 2011-to-date: -72.51%

Uranerz Energy Corp. (UEC)

  • 1-month: -25.78%
  • 3-month: -23.14%
  • 6-month: -40.99%
  • 2011-to-date: -60.42%

Uranium Resources, Inc. (URRE)

  • 1-month: -48.28%
  • 3-month: -66.75%
  • 6-month: -73.40%
  • 2011-to-date: -83.56%

USEC Inc. (USU)

  • 1-month: -40.28%
  • 3-month: -63.82%
  • 6-month: -71.65%
  • 2011-to-date: -79.56%

Over the last month, these companies have lost between 25 and 29 percent, and they have lost between 57 and 84 percent so far this year. These significant losses proliferate uranium miners and producers, as can be seen from the Global X Uranium ETF (URA), which tracks the Solactive Uranium Index and is down over 60% so far this year…..

the future of nuclear power may not rely upon uranium so much as thorium. If such a switch to thorium were to occur, it would have a devastating effect upon uranium prices and miners that are focused on uranium. Nonetheless, such technology is not yet here and experts differ on whether it will be an eventual option or remain a pipe-dream.

It should be expected that this industry will continue to exhibit high risk/reward characteristics, and that investment allocations should be limited accordingly.

Gloomy prospects for uranium industry

August 14, 2011

The disaster at Japan’s Fukushima Daiichi power plant following the March earthquake and tsunami has essentially killed investor enthusiasm for uranium stocks…… The other uranium stocks are all miners, but if there is no support for new nuclear development, then the value of these stocks will drop as well. Aside from early comments supporting nuclear power, the US has been non-committal, whereas Germany and Italy have both indicated that no new nuclear plants will be built and, in Germany, existing plants will be closed over the next decade or so.

USEC Shares Collapse on Loan Worries (USEC, URRE, UEC, URG, URZ, URA),August 5, 2011, 247Wst.com Paul AusickThe sole US provider of low-enriched uranium fuel for nuclear power plants is in serious trouble. USEC Inc. (NYSE: USU) shares have fallen more than -12% this morning and posted another new 52-week low on concern that the company’s loan guarantee from the federal government will not be approved in time to prevent USEC from running into liquidity problems.

Every US company involved in the nuclear fuel business is getting beaten up this morning. Uranium Resources, Inc. (NASDAQ: URRE) is down nearly -12% and Uranium Energy Corp. (AMEX: UEC) is down -4%. Ur-Energy Inc. (AMEX: URG) is off nearly -11% and Uranerz Energy Corp. (AMEX: URZ) is off nearly -5%. The disaster at Japan’s Fukushima Daiichi power plant following the March earthquake and tsunami has essentially killed investor enthusiasm for uranium stocks……

The federal government and the Obama administration re-iterated support for nuclear power shortly after the Japanese disaster, but both remain cautious about making any high visibility moves too soon. Especially moves that indicate on-going support for nuclear power development.

That’s why all the uranium stocks are getting a beating today. Investors have no reason to believe that federal support will be forthcoming for the nuclear industry in the US, and, like so many non-hydrocarbon-based energy projects, lack of federal government support equals the kiss of death.

The other uranium stocks are all miners, but if there is no support for new nuclear development, then the value of these stocks will drop as well. Aside from early comments supporting nuclear power, the US has been non-committal, whereas Germany and Italy have both indicated that no new nuclear plants will be built and, in Germany, existing plants will be closed over the next decade or so.
http://247wallst.com/2011/08/05/usec-shares-collapse-on-loan-worries-usec-urre-uec-urg-urz-ura/

China an investor in USEC

June 29, 2010

Fuel Maker for Reactors Has China as Investor –  NYTimes.com,  24 June 2010, “…….Even a passive Chinese government stake in USEC could draw attention in Washington for its strategic and diplomatic implications. (more…)

Global uranium industry struggles with uncertain future

June 29, 2010

Companies Bet on Rise in Demand for Uranium, By MATTHEW L. WALD NYTimes.com June 18, 2010 WASHINGTON — Uranium enrichment, the market that the Noble Group has entered with its purchase of USEC stock, is a globalized business fraught with uncertainty. (more…)

USEC happy with plan to recycling enriched uranium

April 19, 2010

turns highly enriched uranium into lightly enriched uranium.

Nuclear twist sees Russian warheads warming US homes Herald Sun   AFP , April 13, 2010, IN A strange twist of Cold War enmity on the melt, uranium from what once were Russian nuclear warheads is used to heat and light American homes, thanks to the Megatons to Megawatts Program – a successful example of nuclear non-proliferation. (more…)