USEC Inc. (NYSE:USU) was informed today by the United States Department
of Energy (DOE) that it is prepared to extend the American
Centrifuge cooperative research, development and demonstration
(RD&D) program for three months beyond January 15, 2014, subject to
Congressional appropriations.
DOE and USEC will share costs of the program on an 80-percent/20-percent
basis for a total funding level of approximately $10 million per month.
USEC will continue working closely with stakeholders, including the DOE
and Congress, to achieve the three month extension and identify the best
path forward for the technology.
The American Centrifuge is the only uranium enrichment process employing
U.S. domestic technology that can be used for national security
purposes. It is also an important potential contributor to the country’s
energy security, non-proliferation policy goals, and nuclear high-tech
manufacturing industry. Earlier this month it achieved three important
milestones as part of the RD&D program that was originally proposed by
DOE in 2011. A full production-scale cascade of 120 centrifuge machines
achieved 20 machine-years of operations at commercial plant
specifications.
USEC
Inc., a global energy company, is a leading supplier of enriched
uranium fuel for commercial nuclear power plants.
Forward-Looking Statements
This news release contains “forward-looking statements” within the
meaning of Section 21E of the Securities Exchange Act of 1934 - that is,
statements related to future events. In this context, forward-looking
statements may address our expected future business and financial
performance, and often contain words such as “expects”, “anticipates”,
“intends”, “plans”, “believes”, “will” and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For USEC, particular risks and
uncertainties that could cause our actual future results to differ
materially from those expressed in our forward-looking statements
include, but are not limited to: uncertainty regarding the economics of
and continued funding for the American Centrifuge project and the
potential for a demobilization or termination of the project; our
ability to reach an agreement with DOE and funding for a potential three
month extension of the current research, development and demonstration
(“RD&D”) program and the potential for demobilization or termination of
the American Centrifuge project; our ability to satisfy the conditions
to the announced restructuring plan support agreement with certain of
our noteholders and complete the proposed restructuring, including our
ability to reach a mutually acceptable agreement with the Babcock &
Wilcox Investment Company and Toshiba Corporation regarding the
treatment of their investment and their willingness to make additional
investments in the American Centrifuge project, and the potential for
termination of the restructuring plan support agreement including as a
result of a failure to reach an agreement with DOE regarding a
sufficient extension of the RD&D program; the impact of a potential
de-listing of our common stock on the NYSE; the impact of enrichment
market conditions, increased project costs and other factors on the
economic viability of the American Centrifuge project without additional
government support and on our ability to finance the project and the
potential for a demobilization or termination of the project;
limitations on our ability to provide any required cost sharing under
the RD&D program; uncertainty concerning the ultimate success of our
efforts to obtain a loan guarantee from DOE and other financing for the
American Centrifuge project or additional government support for the
project and the timing and terms thereof; potential changes in our
anticipated ownership of or role in the American Centrifuge project,
including as a result of the need to raise additional capital to finance
the project; the impact of actions we have taken or may take to reduce
spending on the American Centrifuge project, including the potential
loss of key suppliers and employees, and impacts to cost and schedule;
the potential for DOE to seek to terminate or exercise its remedies
under the RD&D cooperative agreement or June 2002 DOE-USEC agreement;
changes in U.S. government priorities and the availability of government
funding, and other risks and uncertainties discussed in our filings with
the Securities and Exchange Commission, including our Annual Report on
Form 10-K and quarterly reports on Form 10-Q. We do not undertake to
update our forward-looking statements except as required by
law.
Copyright Business Wire 2013