Kepco to invest in Spanish uranium

Korea Electric Power Corporation (Kepco) has agreed to invest $70 million in Berkeley Resources Ltd’s Salamanca uranium project in Spain in return for an offtake agreement entitling it to 35% of the project’s output.

Spain-based Berkeley said it has signed a non-binding memorandum of understanding (MoU) with the Korean government energy company, which will see Kepco take a 35% interest in Salamanca. Kepco’s interest will be at the project level only. Kepco will also contribute funding of 35% for the development of the Salamanca project’s assets to bring them into production as well as ongoing operating expenditure. In return, Kepco will be able to secure 35% of the project’s uranium output at standard terms based on a mixture of spot and long-term uranium prices.

Berkeley is aiming to start production at Salamanca, which comprises the four mining areas of Aguila, Alameda, Retortillo and Villar, by the end of 2012. The Salamanca uranium project includes Spanish state-owned reserves, in which Berkeley has a right to acquire a 90% interest, as well the company’s own wholly-owned permits. Uranium was discovered in Salamanca during the 1950s, and from 1974 to 2000 Enusa’s Fe mine produced over 4000 tonnes of uranium (tU) before closing due to low uranium prices. Berkeley intends to use the existing 800 tU per year Quercus mill (Saelices el Chico), which has been under care and maintenance since 2003, to process uranium from Salamanca.

Bob Hawley, non-executive chairman of Berkeley Resources, told World Nuclear News: “This  investment in many ways confirms the reality of our Spanish Uranium project, and adds to our confidence in building our company for the future.”

Berkeley’s managing director, Ian Stalker, described the strategic partnership with Kepco as a significant achievement in the progress of the company’s development cycle. Berkeley would also retain 100% of the exploration potential in its “extensive” portfolio as well as the Gambuta Project with JORC-compliant inferred resources of 9.2 million pounds U₃O₈ (3539 tU), he said.

South Korea’s 20 nuclear power units provide almost 40% of its electricity, but rely on imported uranium to fuel them. Earlier in 2010 Kepco signed an agreed to take an indirect 10% stake in the operating company for Niger’s Imouararen uranium mine, Imouraren SA, in return for rights to 10% of the mine’s production. Various Korean nuclear companies are involved with uranium exploration in Canada, while the state-owned Korea Resources Corporation (Kores) has declared an intention to invest heavily in uranium and copper mines in Africa and South America.

The transaction between Berkeley and Kepco is subject to a due diligence process as well as the necessary approvals from both companies’ boards and the receipt of any necessary regulatory stock exchange approvals.

Source: World Nuclear News

Fusion reactor agreement finalised

Construction of the Iter reactor will take place at Cadarache in Southern France

The European Union and six member states have reached a deal on the financing and timetable for an experimental nuclear fusion reactor.

An explosion in costs had cast a cloud over the International Thermonuclear Experimental Reactor (Iter).

The project, which is to be based in Cadarache in southern France, aims to harness the same physical process that fuels the Sun.

Additional construction funds will have to come from within the EU’s budget.

The extra 1.4bn euros will cover a shortfall in building costs in 2012-13.

Delegates agreed that the overall costs of the project will be almost US $21bn, (16bn euros/£13bn), some three times the original price.

They also agreed a timeline that would see the first plasma experiments in 2019, with a fusion reactor generating significantly more power than it consumed by 2026/27.

‘Landmark’ day

The organisation also appointed a new director general, Professor Osamu Motojima, who said that he believed the new timeline and budget agreed in Cadarache would make fusion a reality.

“Today is a landmark day for the Iter project, now we are moving into the real construction phase,” he said.

Four years ago, the EU, Russia, China, India, Japan, Korea and the US picked Cadarache in the south of France as the location for the experiment that aimed to produce energy from the fusing of light atomic elements, the same process that makes the Sun shine.

But since the science of how to achieve this type of fusion hasn’t been settled, the plans for the Iter project have been the subject of several revisions in recent years, each one leading to an increased price tag.

Coupled with the increases in costs for raw materials like steel and cement, the budget for the project has spiralled from around 5bn euros to about 16bn euros, as confirmed today.

The EU has agreed to meet a critical short term shortfall of 1.4bn euros by using money that has been allocated to other research programmes.

But the EU has said it will cap its overall contribution to Iter at 6.6bn euros, leaving the fusion project to find cuts in costs of around 600m euros.

“To meet this we need to reduce the construction costs and also reduce some contingency provisions,” said Professor Motojima.

“Cost containment is very important. To get understanding from public we need to reduce costs as much as possible; realising this is my largest responsibility,” he observed.

“My basic attitude to realise cost containment is to simplify everything, I propose to simplify a new management structure of the organisation.”

Professor Motojima agreed that there would be no more bailout in future.

“It’s impossible to look for more money. My expectation is that we can do this within our budgets. I have the prospect we can do this, otherwise I wouldn’t accept my new responsibility.”

The director of research in nuclear energy at the European Commission, Octavio Quintana Trias, suggested that Wednesday marked a landmark for Iter in coming to terms with reality.

“The most important thing is that the designs which were conceptual in 2001, now are much closer to the reality of the industry. I can guarantee nothing but it is less likely that we will have cost surprises when the designs are much closer to the reality than they were ten years ago.”

Mr Quintana Trias said that the while Wednesday’s meeting was a major step forward for research, a commercial fusion reactor wouldn’t happen until 2040 at the earliest.

But despite the large rise in costs, he added that he believed the investment was worth it.

“If you consider the total costs of the machine even in the worst scenario are the bill we pay for energy for one day in the world, then to get a new energy source for this price I think is worth trying.”

Cost concerns

In Europe, some scientists are unhappy with the EU proposal to take funds from unspent budgets to bail Iter out.

In France, a group of physicists – including Nobel prize winner Georges Charpak – have written a letter to the press calling Iter a catastrophe and arguing that it should be shut down.

They suggest that making up the shortfall in Iter’s budget is costing France alone the equivalent of 20 years investment in physics and biology.

According to one of the signatories, Professor Jacques Treiner from Paris University, it was time to call a halt to Iter before any more money was spent.

“The end of Iter would not mean the end of plasma physics or fusion research, just the end of that project which was ill conceived,” Professor Treiner said.

“At a certain point especially when they say they will take money from other fields to fund this one you have to say, really a clear answer and the answer is no, don’t do that.”

Source: BBC News

South Korea: Nuclear cooperation agreements

Minister of Knowledge Economy Choi Kyung-hwan was reportedly surprised when his Mexican counterpart, Minister of Energy Georgina Kessel Martinez, asked during their meeting in Mexico City on Thursday if Korea could help train Mexican atomic energy engineers.

Choi accepted the request, which was not discussed at all in advance, thinking Mexico could become the third country in the world to introduce Korea’s nuclear reactors. Korea won an $18.6 billion deal with the United Arab Emirates last December to build four nuclear reactors by 2020. Korea also signed a cooperation agreement with Turkey in June to promote the construction of two nuclear power plants worth $10 billion on Turkey’s Black Sea coast.

Mexico currently operates two reactors built by GE. It plans to build two more reactors by 2021 after undertaking detailed feasibility studies during the next two years. The Mexican energy minister is scheduled to visit Seoul next month for a more detailed discussion on cooperation.

Mexico’s request for help in the training of nuclear engineers is a testament to the confidence foreign governments have in Korea’s advanced nuclear technology. Many other countries interested in introducing nuclear power to reduce their reliance on fossil fuels are in talks with Korea to conclude cooperation pacts in the nuclear energy field.

For instance, Korea and India will start negotiations on an atomic energy agreement in Mumbai on Tuesday. The pact, if concluded, would help Korea export its reactors to India. To meet its surging energy demand due to rapid economic growth, India plans to build 20 nuclear power plants by 2020.

Korea needs to further broaden collaboration on nuclear technology with foreign countries to attain its goal of exporting 10 reactors by 2020 and 80 by 2030. In particular, it should endeavor to grasp the specific needs of these countries and tailor its cooperation programs to them.

Many developing countries want Korea to help them train their atomic energy experts. Korea operates a world-class training institute in cooperation with the International Atomic Energy Agency. It needs to expand and upgrade its training programs to accommodate more experts from abroad.

Source: The Korea Herald

Russia and U.A.E. to sign nuclear agreement

The United Arab Emirates and Russia plan to sign “in the near future” an agreement to work together on nuclear energy.

“After the signing of the cooperation agreement, we will have the potential to work on research reactors and we also plan to take part in the Emirates’ program with the Koreans,” Russian Energy Minister Sergei Shmatko said Monday in Moscow after a meeting with U.A.E. Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan.

The U.A.E. awarded an $18.6 billion contract in December to Korea Electric Power Corp. to build four nuclear plants by 2020 as it seeks to meet increasing demand for power. The plants, to be built on the coast of western Abu Dhabi, will each have a capacity of 1,400 megawatts.

The Persian Gulf nation is pursuing nuclear power while neighboring Iran faces sanctions aimed at forcing it to scale back nuclear development work.

Iran says its nuclear program is for civilian purposes such as generating power. It has rebuffed United Nations Security Council demands to suspend uranium enrichment. The council imposed a fourth set of sanctions on Iran on June 9, backed by Russia and China, while the Congress approved U.S. sanctions last week.

Power demand in the U.A.E. will double to 40,000 megawatts by 2020, Anwar Gargash, the minister of state for foreign affairs, said last November. The nation prohibits the enrichment of uranium on its soil and signed a nuclear energy cooperation deal with the U.S.

“We are ready to cooperate with Russia in nuclear power on various aspects,” Sheikh Abdullah said after Monday’s meeting of the Russian-U.A.E. commission on cooperation. “By 2030, we plan to generate as much nuclear power so as to meet one third of our energy consumption.”

Source: Bloomberg / The St. Petersburg Times

Korea and US must strengthen commitment on clean energy

Korea and the United States must maintain active cooperation in the energy domain, as the massive oil spill in the Gulf of Mexico has sounded an international wake-up call over the need to prioritize clean energy, the U.S. deputy energy secretary said Monday in Seoul.

“The tragic events we have witnessed in recent weeks in the Gulf show the potential costs of failing to embrace the opportunity to move our economies in the direction of a clean energy future,” Daniel Poneman said in a speech at the Marriot Hotel in southern Seoul. “Our two nations will continue to play a seminal role, together, in building that future.”

The remarks came as BP’s Deepwater Horizon rig spews an estimated 35,000 to 60,000 barrels of oil a day into Gulf waters after exploding in April.

The White House is attempting to reframe the disaster as an opportunity to push to find alternative energy sources, reduce dependence on oil and cut greenhouse gas emissions.

Those U.S. energy goals are well aligned with those of Seoul, Poneman said. He added that Korea is primed to take a leadership role in the field, citing President Lee Myung-bak’s plan to develop industry based on eco-friendly, renewable energy technologies.

“It was noteworthy to listen to President Lee when he announced his Green New Deal package to stimulate the development of a low carbon, green growth economy here in South Korea,” he said. “It’s a path to create a sustainable and prosperous future for us all.”

Poneman arrived in Seoul after attending a weekend gathering of energy ministers of the Asia-Pacific Economic Cooperation forum in Fukui, Japan.

At the meeting, the need to promote the nuclear power sector was high on the agenda as a way to bolster international energy security.

Poneman pointed to nuclear energy as an arena for U.S.-Korea cooperation, citing “the responsibility that our two nations have to make sure that as nuclear power is used, it is used responsibly.”

He said President Lee’s participation at the Nuclear Security Summit held in Washington, D.C. in April, as well Seoul’s hosting of the event in 2012 are prime examples of such cooperation.

The two allies are also making joint efforts to research in the areas of smart grids and clean coal technologies, Poneman said.

Korea, which generates some 30 percent of its electricity from nuclear power, is emerging as major player in nuclear power plant construction.

Seoul is seeking a plant contract in Turkey following the $20 billion it landed with the United Arab Emirates last year. India, Malaysia, the Philippines and Finland have also expressed interest in acquiring plants.

Source: The Korea Times

India and Korea to sign 3 accords

India and Korea will soon commence negotiations on forging a nuclear energy cooperation pact even as the two countries today inked three accords to enhance economic and cultural ties in Seoul.

External Affairs Minister S M Krishna, currently on an official visit there, co-chaired the 6th meeting of India-ROK Joint Commission along with his Korean counterpart Yu Myung- Hwan, where two ministers agreed to launch negotiations for the conclusion of an Inter-Governmental Agreement on Peaceful Uses of Nuclear Energy.

“Noting that the two sides had already exchanged drafts of an Inter-Governmental Agreement on Peaceful Uses of Nuclear Energy, the two ministers agreed to launch negotiations between the two countries, at an early date, for the conclusion of such an agreement,” an official statement said here.

The two countries also signed three MoUs, including one on Cooperation in the field of Small and Medium Enterprises. Cooperation between ICCR and Korea Foundation, and that between Indian Council for World Affairs (ICWA) and the Institute for Foreign Affairs and National Security (IFANS) of the RoK formed the other areas of the MoUs.

The two ministers discussed ways to enhance bilateral defence and security cooperation including through expanded naval cooperation in anti-piracy operations in the Indian Ocean.

Krishna proposed establishment of the dedicated Joint Science & Technology Fund of USD 10 million (with a contribution of USD 5 million by each side) to promote joint research between scientists and technologists of the two countries.

He underscored the importance of implementation of the MoU on Cooperation in the Peaceful Uses of Outer Space, including through the launch of Korean satellites by Indian rockets.

Noting that bilateral trade has jumped by a robust 70 per cent in the first four months of the year, the statement said this trend was expected to continue over the coming months, providing confidence that the trade target of USD 30 billion by 2014 could be achieved.

“My visit is aimed at consolidating and expanding our ever closer ties… I have been able to call on President Lee and hold wide-ranging, intense and fruitful discussions with Foreign Minister Yu Myung-Hwan,” Krishna said while addressing a gathering at IFANS on strengthening India-ROK strategic partnership.

Source: Express Buzz

South Korea to discuss nuclear energy cooperation with Turkey

Turkish President Abdullah Gul will arrive in Seoul Monday for a three-day state visit, during which he will hold a summit with President Lee Myung-bak to discuss bilateral trade and energy ties, Cheong Wa Dae announced Thursday.

Gul’s visit has a special meaning for South Korea-Turkey relations as Seoul marks the 60th anniversary of the outbreak of the Korean War on June 25, presidential spokesman Park Sun-kyoo said. Turkey dispatched 15,000 troops to assist South Korea in the 1950-53 war.

At the planned summit on Tuesday at Cheong Wa Dae, Lee and Gul will discuss ways to boost trade, cultural exchanges and cooperation on energy, construction and defense industries between the two countries.

The office didn’t mention ongoing talks on Korea’s export of nuclear power plants to the Eurasian country due to the sensitivity of the issue. Nevertheless, the nuclear cooperation between Seoul and Ankara are expected to be high on the summit agenda.

Turkey and Brazil signed a nuclear deal with Iran last month, despite opposition from the United States. On Wednesday, the U.N. Security Council passed a fourth set of U.S.-backed sanctions against Iran in the hope of stopping Teheran from developing nuclear weapons.

On the same day, Turkey agreed with Russia to cooperate in the nuclear energy sector at a regional security meeting in Istanbul.

South Korea has been pushing for a $20-billion deal with Turkey that calls for construction of up to four light-water commercial nuclear reactors and, according to reports, a signing is imminent.

At the summit, Lee and Gul will also exchange views on a wide range of regional and international issues, including security conditions on the Korean Peninsula and Seoul’s plan to host the G-20 Summit in November, Cheong Wa Dae said.

During his stay here, the Turkish president is also scheduled to visit the National Cemetery and the U.N. Cemetery in the southern port city of Busan as well as meet with National Assembly Speaker Park Hee-tae.

The U.N. Cemetery commemorates the sacrifice of foreign soldiers who took part in the Korean War.

Source: Na Jeong-ju, The Korea Times

NPT conference wraps up in NYC

The month-long conference on the Nuclear non-Proliferation Treaty (NPT) has ended by confirming the treaty’s importance to the use of nuclear energy and placing pressure on Israel and North Korea.

Every five years the signatories to the NPT meet to discuss progress towards the two ultimate goals of the treaty: the prevention of any new countries gaining nuclear weapons and the elimination of those already held.

A third aim is the provision of a framework for the peaceful use of nuclear energy. Its efficacy in that regard was noted by the 189 signatory nations, who wished for the first time in the consensus document for every one of their number to bring into force the NPT’s Additional Protocol, which allows the International Atomic Energy Agency important extra powers to check on their nuclear activities.  States able to do so were urged to contribute to a extra fund of $100 million for the IAEA to carry out this kind of safeguards work.

UN Secretary General Ban Ki-Moon addresses the NPT Review Conference in early May (Image: UN/Eskinder Debebe)

The commitment of the ‘weapons states’ (those recognised as holding nuclear weapons: China, France, Russia, the UK and the USA) to their side of the bargain was welcomed, especially the new agreement by Russia and the USA to further limit their forces. At the start of the conference, the USA formally gave 5113 as the number of warheads it had, and after the UK general election that country followed suit by with a declaration of holding 160 operational warheads among a stockpile of 225.

Naming names

Controversy came with the final document thanks to a section on the Middle East in which the parties committed to a process to achieve the full aims of a 1995 resolution, which remain valid. This means establishing a nuclear weapons-free zone in the Middle East, beginning with discussion at UN conference in 2012. Present at such a meeting should be the nuclear weapons states as well as every nation in the region – including Israel, despite its status outside the treaty.

The document recognised “the importance of Israel’s accession to the NPT and the placement of all its nuclear facilities under comprehensive IAEA safeguards,” but this was immediately rejected by the country: “The real problem with weapons of mass destruction in the Middle East does not relate to Israel but to those countries that have signed the NPT but brazenly violated it – Iraq under Saddam Hussein, Libya, Syria and Iran.” It continued, “As a non-signatory to the NPT, Israel is not obligated by the decisions of this conference, which has no authority over Israel.”

Statements from the USA said it “deeply regrets” the specific mention of Israel, which it said had harmed America’s ability to help the cause.

In a similarly unrealistic vein, India and Pakistan were both urged to join the NPT as non-nuclear weapons states.

There was no controversy, however, over a paragraph condemning North Korea’s nuclear exploits. The conference affirmed that “the situation… constitutes a threat to the peace and security of northeast Asia and the entire international community, and poses a critical challenge to the global non-proliferation regime.”

Source: World Nuclear News

Four nations, including Korea, bidding for Poland’s first nuclear power plant

Four countries are bidding to construct Poland’s first nuclear power plant.

According to an Associated Press report, Hanna Trojanowska, the Polish atomic energy advisor who oversees the program said the nation is mulling over bids from Korea, France, Japan and the United States. A decision is expected in two years and the project is targeted for completion by 2020.

The town of Zarnowiec near the Baltic Sea is the most likely location for the nuclear power plant.

But other towns that are close to large bodies of water which is essential for cooling the reactors are also being considered. With some 90 percent of its energy coming from coal the eastern European nation is busily working to switch to nuclear energy as soon as possible.

Meanwhile in Korea, Strategy and Finance Minister Yoon Jeung-hyun recently said the government will expand foreign cooperation in high value business areas.

In an economic policy meeting, Yoon stated that the country needs to shift away from its traditional strong suit of manufacturing and construction to seek opportunities in value-added areas such as atomic power generation and high-speed trains

The top economic policymaker also said Korea must capitalize on recent achievements with follow-up deals referring to the success in winning a contract to build four nuclear reactors in the United Arab Emirates last December.

Source: Arirang News

Joint venture for UAE nuclear reactors

Samsung Corp. is in the process of signing a sub contract agreement with state owned utility Korea Electric Power Corp. on the construction of the nuclear reactors for the UAE. The company will soon start mobilization on the project in partnership with Hyundai Engineering and Construction. Last year, a South Korean consortium led by KEPCO won AED 75 billion deal to build and operate four nuclear reactors for the UAE. The consortium includes Hyundai Engineering and Construction, Samsung C & Corp., Doosan Heavy Industries and US-based Westinghouse Electric. The first nuclear plant is scheduled to start supplying power to the UAE grid in 2017 with the three later units being completed by 2020. Ten locations have been proposed for the plants, which are expected to provide 25% of the country’s power needs. The total construction period is around 10 years.

Source: Focus ON

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