cigar lake back online, page-7

Thanks isatas

The following below is an extract from one of the links you provided......basically what the contract says to my understanding is, yes the Russians may be willing to supply the USA with only half of todays volume, for a short period, the uranium may not be derived be from stockpiles.




The Termination of the Contract

This program is due to expire at the end of 2013. The American government has been very active over the past few years in attempting to extend the contract – all without success. The current Russian powers view former President Yeltsin’s submission to the M2M program as a betrayal of Russian sensibilities, and of her national security. To the best of anyone’s knowledge, the program will expire, and will not be renewed in anything resembling its existing form.

A new contract has been devised and entered into, between TENEX and USEC. Announced in March 2011, by USEC, the so-called “Transitional Supply Contract” stipulates that USEC may purchase from TENEX a quantity of LEU, which is roughly half of the amount that was being delivered through M2M.

"However, this material has one very important difference: it is expressly stated in the contract that the uranium may NOT be derived from the Russian military or government stockpile. "

Furthermore, USEC must provide TENEX with sufficient natural uranium to replace any Russian mine supply used to produce this LEU. Hence, the Americans must source all the uranium that is used to supply all their own LEU. This contract is effectively nothing more than a purchase agreement for Russian enrichment capacity.

The problematic bit for Americans is that total domestic uranium production has been less than 4 million pounds per year for several years. Given the enormously daunting requirements in the US for permitting new uranium mines, this level of production is not likely to rise to the 24 million pounds which is being displaced by the expiry of M2M any time in the foreseeable future. Americans are now almost entirely dependent on their own fast-dwindling stockpiles, and foreign uranium supplies.


- See more at: http://investorintel.com/nuclear-energy-intel/the-end-of-the-megatons-to-megawatts-program-m2m/#sthash.7Hj7QqG4.dpuf