China builds uranium enrichment centrifuge, page-33

You're a cool level-headed dude win128!

Let's get back to what may or may not be happening at Paducah.

The decision to only process the tailings to natural-U (NU) levels (0.7%) was decided as part of DoE's policy - which incidentally does allow tailings to be treated to LEU level:

http://energy.gov/ne/downloads/disposition-doe-excess-depleted-uranium-natural-uranium-and-low

In accordance with this policy, DOE proposes to disposition part of its excess uranium inventory using one or a combination of two methods: (1) enrichment to either NU or LEU product, and subsequent storage or sale of the resultant NU or LEU product (the Enrichment Alternative), and (2) direct sales to appropriately licensed entities (the Direct Sale Alternative). Under the Enrichment Alternative, DOE could enrich DU to the 235U content of NU (i.e., 0.711 percent 235U), and DOE could enrich DU, NU, and/or LEU (with a current 235U content of less than 4.95 percent) up to 4.95 percent 235U content. This environmental assessment (EA) assumes that the Proposed Action would result in the annual enrichment and/or sale of amounts of the excess inventory that, combined with other DOE sales or transfers to the market, generally would not exceed 10 percent of the total annual fuel requirements of all licensed U.S. nuclear power plants—that is, approximately 2,000 metric tons of uranium (MTU). In some years, the annual amount enriched and/or sold could be greater than 2,000 MTU (for example, due to startup of new reactors, which requires approximately two times the amount of natural uranium needed for subsequent routine re-loads).

For whatever reason, the Paducah operation is deemed enrichment to NU which will be in the form of UF6 so potentially worth more than yellow cake. Ideally, GLE should enrich this to LEU but DoE must also ensure that this doesn't adversely affect the US market, as per DoE policy. MG did state that they were in the process of raising more funds so build costs have either risen or else GLE doesn't have enough funds to build the required facilities. Despite the uncertainties, none of this prevents the need for the cleanup of the tailings (although there is a No Action option available in the DoE policy). If it makes economic sense, Paducah will go ahead so progress will be noted once MG comes back to say that the required funds have been raised.

From SLX's point of view what matters is the royalties it gets from the operations. Is it the 7-12% of revenue (sale of NU), or is it payment per unit of treatment? The first option wouldn't be worth as much given the current low market price for U (granted the product would be UF6 so worth more than U). The second option would be a percentage of whatever GLE gets for the treatment operations - part of the variable charges which has somehow got mixed up with the fixed costs in the 7-12% royalty deal.

Cheers