The US Department of Energy and GLE (Licensee for the SILEX Technology) Reach Agreement for the Sale and
Purchase of Depleted Uranium Hexafluoride
Opens pathway for the first commercial SILEX laser enrichment plant in Paducah, Kentucky
Highlights:
- An agreement between the US Department of Energy (DOE) and Global Laser Enrichment (GLE) –
licensee of the SILEX technology - has been signed for the sale and purchase of depleted uranium hexafluoride (DUF6);
- DOE approval provides for the sale and purchase of approximately 300,000 metric tons uranium (MTU)
of DOE-owned high assay tails inventories for re-enrichment with the SILEX technology to produce natural grade uranium;
- This pivotal event in the commercialisation of the SILEX technology paves the way for the
potential construction of the first laser enrichment facility in Paducah, Kentucky;
- The restructure of GLE, being led by Silex, continues to progress positively with a number of
potential investors currently undertaking due diligence activities.
Silex Systems Limited (ASX:SLX) (OTCQX:SILXY) (Silex) announced today that an agreement has been signed between the US
Department of Energy (DOE) and the exclusive licensee for the SILEX laser-based enrichment technology, GE-Hitachi Global Laser
Enrichment LLC (GLE). The agreement, which facilitates the sale of approximately 300,000 MTU of ‘high assay’ DUF6 to
GLE, follows the DOE’s selection in 2013 of GLE’s proposal to construct a SILEX laser enrichment facility in Paducah, Kentucky, to
re-enrich the tails inventories.
“The finalisation of the agreement with the DOE is a pivotal step in the path to commercialisation for our unique third
generation SILEX laser enrichment technology. We wish to thank federal, state and local partners, including the DOE, the state of
Kentucky and the city of Paducah for supporting this opportunity,” Dr Michael Goldsworthy, Silex CEO said today.
“We look forward to working with the many stakeholders involved to make this opportunity become a commercial reality over the
next few years. In particular, we are enthusiastic about engaging with the local Paducah and Kentucky workforces to bring our
cutting edge laser enrichment technology to the traditional heartland of the US enrichment industry, and helping to restore US
leadership in nuclear technology.”
Subject to timely completion of the technology commercialisation program, prevailing market conditions and receipt of
required regulatory approvals, realization of GLE’s proposed Paducah Laser Enrichment Facility (PLEF) would see the
construction and operation of the world’s first commercial laser enrichment facility, with the anticipated timing for the
construction of the PLEF in the early 2020’s. GLE would finance, construct, own and operate the PLEF adjacent to the existing
DOE site. Silex and GLE are also investigating the possibility of utilising a US government loan guarantee facility to support the
financing of the project. The PLEF would become a commercial uranium enrichment production facility under a US Nuclear Regulatory
Commission (NRC) license.
Re-enrichment of the 300,000 tons of high assay tails inventories at PLEF would occur over a period of at least 40 years,
producing in the order of 100,000 tons of natural grade uranium, with the balance (low assay tails) being returned to the DOE for
disposition. The natural grade uranium produced at the PLEF would be sold into the expanding global uranium market, and
depending on the production rate, would be equivalent to one of the world’s largest uranium mines.
The PLEF production rate and subsequent sale of uranium into the market is likely to be regulated by the US government at around
2,000 metric tons of uranium per year (equivalent to a mine producing around 5 million pounds of uranium oxide), equating to
approximately US$200 million in sales of uranium per year at today’s low uranium term prices.
Given the current state of the enrichment market, the PLEF opportunity provides an alternative path to market for the SILEX
laser enrichment technology, and establishes a foundation for further expansion by GLE into the enrichment market when new capacity
is needed to supply future increasing demand. As previously disclosed, in 2012 GLE obtained a combined construction and operating
license from the US NRC for an enrichment plant of up to 6 million separative work units (SWU – the unit for enrichment) planned
for Wilmington, North Carolina. The current annual demand for enrichment is around 50 million SWU, equivalent to approximately US$3
billion at today’s current low SWU term prices.
The US DOE has made a parallel announcement regarding the agreement. The DOE announcement, including comments by Secretary of
Energy Dr Ernest Moniz, can be found on the home page of the DOE website (energy.gov) under the ‘News’ section.
WE Buchan
Catie Corcoran, 813-895-4575
View source version on businesswire.com: http://www.businesswire.com/news/home/20161111005114/en/