Competitive American Tails Upgrade Partnership

20 October 2011

ConverDyn and URENCO USA are pleased to jointly announce the Competitive American Tails Upgrade Partnership (CATUP).

The two companies have created CATUP in order to be responsive to potential U.S. Department of Energy (DOE) interest in upgrading and managing stocks of depleted uranium. The main objectives of CATUP are:

• Offer superior value to DOE and the American taxpayer through competitive bidding for services and exchange of natural uranium for depleted uranium
• Employ American fuel cycle assets
• Avoid disruptions to nuclear fuel markets

Following the successful 2005 pilot program under which over 8,000 metric tons of depleted uranium were upgraded, DOE may be interested in pursuing a longer term commercial upgrade program consistent with its uranium inventory management policy.

By employing American conversion and enrichment assets combined with inventories of uranium concentrates secured by CATUP, the partnership is prepared to immediately work with and on behalf of DOE to help convert unusable depleted uranium into a valuable energy asset, as well as reduce the volume of depleted uranium that will ultimately need to be disposed of.

ConverDyn’s Illinois facility, owned and operated by Honeywell International Inc. will convert the already secured uranium concentrates. The converted natural uranium will then be exchanged for depleted uranium from DOE. CATUP will sample, clean and re-package DOE’s depleted uranium for upgrading at URENCO USA in New Mexico. This approach will promote significant direct job retention and growth in Illinois and New Mexico, stimulate new capital investment in modern U.S. nuclear fuel cycle infrastructure, and help protect U.S. uranium mining interests from unpredictable and excessive DOE inventory sales.

When DOE determines that a commercial tails upgrade program is appropriate in the context of its ongoing cleanup of World War II era gaseous diffusion plants and associated depleted uranium management, CATUP is prepared to offer competitive commercial terms for DOE’s consideration.

Notes to editors:

LES / URENCO USA

LES, LLC is a wholly-owned subsidiary of URENCO Ltd.  The URENCO USA, New Mexico plant is the nation’s most advanced uranium enrichment facility and will provide a secure domestic enrichment fuel supply source to U.S. nuclear energy companies for many years to come.

Contact

Name: Ganpat Mani
Title: President ConverDyn
Direct Tel: +1 (303) 930-4901
Email: ganpat.mani@converdyn.com  

Name: Kirk Schnoebelen
Title: President URENCO, Inc.
Direct Tel: +1 (703) 682-5203
Email: kschnoebelen@urencoinc.com

Name: Jayne Hallett
Title: Head of Group Communications
Direct Tel: +44 (0)628 402297
Email: jayne.hallett@urenco.com