Eskom signs uranium deal with Russia (15 August 2011)

POWER utility Eskom yesterday signed a long-term contract with Russian state uranium trader Tenex to supply enriched uranium, according to the head of Russia’s state nuclear corporation, Rosatom, which owns Tenex.

SISEKO NJOBENI
Published: 2011/08/15 10:34:29 AM

POWER utility Eskom yesterday signed a long-term contract with Russian state uranium trader Tenex to supply enriched uranium, according to the head of Russia’s state nuclear corporation, Rosatom, which owns Tenex.

Low-enriched uranium is used as fuel for nuclear reactors. The deal with Tenex gives SA’s only nuclear power station, Koeberg, security of uranium supply for about 10 years.

Koeberg, which has been operational for more than 25 years, supplies 6% of SA’s total electricity needs.

According to Sergey Kiriyenko, chief of Rosatom, the deal — which would run for about 10 years — would give Russia control of about 45% of SA’s uranium market.

Mr Kiriyenko yesterday told reporters deliveries would begin next year and that Russia hoped to eventually capture almost half of SA’s market for low-enriched uranium. "Our share of the market (for low-enriched uranium) in SA will rise," Mr Kiriyenko said.

The deal was signed after talks in the Kremlin between President Jacob Zuma and his Russian counterpart, Dmitry Medvedev. Mr Zuma, with a high-profile business delegation, is on an official visit to Russia that ends today.

Tenex recently signed several uranium supply contracts with US companies. The company last year also sealed a long-term uranium enrichment contract with Japan’s Chubu Electric Power.

The details of the deal have not been released but Eskom nuclear stakeholder management senior manager Tony Stott said yesterday the agreement was likely to be favourable to SA.

"It is important to point out that the agreement will be under the safeguard of the International Atomic Energy Agency, to ensure that the uranium is not used for nuclear weapons," Mr Stott said.

US nuclear energy company Westinghouse Electric last year announced it had been awarded a 30m contract to supply nuclear fuel to Koeberg. The deal will run from late next year until 2015. With Reuters

njobenis@bdfm.co.za