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Show AEC Asks Comments to Help Dispose Of Supplies of Uranium Concentrates The Atomic Energy Commission Com-mission is requesting public comment on plans for disposal dispos-al of AEC's surplus uranium stocks beginning in 1974 and for deferring until the latter part of this decade any general gen-eral relaxation of the restriction re-striction on the enrichment of foreign uranium for use in domestic reactors. The restriction on enrichment enrich-ment of foreign uranium was established by the Commission Commis-sion as a pari, ot its Uranium Enrichment Services Criteria, in accordance with the provisions pro-visions of the Atomic Energy Act, to help assure the maintenance main-tenance oi a viable domestic uranium industry. The Commission proposes to take no action toward lilting lilt-ing this restriction until the mining and milling industry is in a stronger giowth position, posi-tion, which tne Commission believes will be toward tne end ot this decade. However, the Commission now considers consid-ers it appropriate to reach decisions and begin action toward disposal oi the AEC's surplus uranium. Surplus Uranium Disposal Alter making provisions for future government requirements, re-quirements, which are subject sub-ject to some uncertainties, the AEC expects to have a surplus of natural uranium (equivalent to about 50,000 tons of U308) available lor sale to domestic and foreign customers. Under the Commission's plan for disposal of its surplus sur-plus uranium, deliveries to the domestic market would begin in 1974. They would not exceed in any year one-half of the projected cumulative growth in domestic requirements require-ments from 1973 to and including in-cluding that year, nor would they exceed one-fourth of the total domestic requirements in any such year. The maximum maxi-mum delivery in any one year is proposed to be limited to 7,500 tons of U308. In view of the substantial uranium inventories held by consumers in the short-term future, the quantity which would be offered for delivery in 1974 and 1975 would be less than the deliveries which might otherwise be made under un-der this formula. It is contemplated that in early 1972, offerings would be. made for material to be delivered de-livered in 1974, 1975 and 1976. Bids w'ould be requested on a dual basis payment at the time of delivery and prepayment at the time of the award. Bids could be accepted ac-cepted or rejected at the option op-tion of the Commission. Subsequent deliveries would be phased into the commercial commer-cial market at an increasing rate to the projected growth in domestic nuclear fuel requirements, re-quirements, but within the established maximum. AEC would begin to withdraw from the market gradually toward the end of the disposal period per-iod so that industry could increase in-crease its capacity to replace re-place government sales in an orderly manner. If there are major changes in the supply or requirements, or if experience indicates the formula requires modification, modifica-tion, the AEC may revise the disposal plan. ' However, any changes will be consistent with maintaining the viability viabil-ity of the domestic uranium industry. Any significent proposed pro-posed changes would be issued is-sued for public comment in advance of adoption. Restriction Removal The AEC stated Sept. 7. 1968, that removal of the restriction re-striction on the enrichment of foreign uranium for domes-itc domes-itc use might be possible by July 1, 1973, or earlier, and that it intended to announce the proposed date as early as possible. The Commission also al-so said it would consider removing re-moving the restriction on a graduated schedule. In recognition of uranium production plans already adopted, ad-opted, the expected soft uranium ur-anium market over the next several years, the availability of large surplus domestic and foreign stocks, and the availability avail-ability oi excess loreign uranium ur-anium production capability, the enrichment of foreign uranium ur-anium lor domestic reactors would be deferred until the latter part of the present decade. de-cade. Alter that time, it is anticipated that an individual could furnish foreign uranium as part of the feed for enrichment en-richment transactions where the enriched product was intended in-tended for domestic use. The proportion of foreign feed initially in-itially would be limited, but it would be increased in subsequent sub-sequent years, depending on developments, until all restrictions restric-tions had been removed. The Commission will make periodic reviews to determine whether there is any need lor change in the timing of the initial in-itial relaxation of the restriction, restric-tion, as well as to define the appropriate ratio of foreign to domestic uranium to be accomodated. ac-comodated. The Commission expects that experience in the commercial market under partial par-tial removal of the restriction, together with trends in the growth of nuclear power, will permit decisions on the timing and extent of further relaxations relaxa-tions of the restriction without compromising the viability of the United States uranium rn-industry. rn-industry. Every effort will be made to announce specific steps sufficiently in advance to permit realistic planning by the industry, be submitted on the plans for the surplus disposal program and on the continuing defer-men defer-men of enrichment of foreign uranium for domestic use. Suggestions should be sent in triplicate to the Oliice of the Secretary, U.S. Atomic Energy Commission, Washington, Wash-ington, D.C. 20545, within 60 days of this announcement. Alter consideration of all comments, com-ments, AEC's proposed plan on these matters will be published pub-lished in the Federal Register Regis-ter with further opportunity provided for comment. |