New Mexico Joins the Nuclear Renaissance
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New Mexico Joins the Nuclear Revival
Summary
New Mexico is poised for another uranium boom, fueled by the new Urenco enrichment facility. This development may revive the state’s role as a key player in the nuclear energy sector.The Uranium Renaissance in New Mexico
It's been decades since New Mexico witnessed a uranium boom. It all started in the 1950s when a Navajo shepherd, Paddy Martinez, stumbled upon uranium-rich rocks. This discovery sparked a rush of prospectors eager to tap into the nuclear industry's potential.Today, a new surge is underway. The European consortium Urenco Ltd, in partnership with Louisiana Energy Services (LES), recently received a draft license from the U.S. Nuclear Regulatory Commission to build a $1.5 billion uranium enrichment plant in Lea County, New Mexico. This marks the first permit issued to a private company for such a facility in 30 years.
The timing aligns with International Uranium Corporation's (IUC) plans to reopen mines in the Four Corners region. IUC President Ron Hochstein emphasized utilizing their White Mesa Mill for toll milling contracts with future miners. This facility is one of only two operational uranium mills in the U.S. and is located near the New Mexico border.
Revival of Uranium Development
Uranium development companies are reclaiming properties abandoned during the industry’s downturn in the '80s and '90s. New companies are entering New Mexico, drawn by record-high uranium prices to finance exploration and development.With the White Mesa Mill and the new enrichment facility, New Mexico could again become a leading production center. Previously, the Grants Mineral Belt produced over 340 million pounds of uranium oxide before the industry stalled. It once accounted for about 40% of U.S. uranium production.
Who Is Urenco?
Urenco, or the Uranium Enrichment Company, was established through a 1970 treaty between Germany, the Netherlands, and the UK to develop centrifuge technology for uranium enrichment. It has subsidiaries in each of these countries.The planned National Enrichment Facility (NEF) near Eunice, New Mexico, will provide a sustainable domestic supply of slightly enriched uranium using Urenco's advanced centrifuge technology. This technology is more efficient and cost-effective than the gaseous diffusion method used by USEC, which supplies uranium derived from decommissioned Russian weapons under the HEU agreement.
By 2001, the U.S. produced only 12% of its required enriched uranium domestically, importing 55% from Russia. Urenco contributed 16% and aims to increase this to 25% with the new facility, which is expected to produce 3 million Separative Work Units (SWUs) annually.
Understanding Gas Centrifuge Technology
Nuclear reactors require enriched uranium, often between 3-5%, rather than natural uranium with 0.7% U-235 isotope. The centrifuge process separates the fissionable U-235 isotope from U-238, gradually achieving the necessary enrichment level.The process begins with mining and milling uranium into yellowcake, which is then converted into uranium hexafluoride (UF6). This UF6 is fed into high-speed centrifuges where the isotopes separate due to centrifugal force.
Urenco's technology involves cascades of centrifuges where UF6 gas is enriched and then cooled back into a solid form for fuel fabrication.
Economic Impact of Uranium Enrichment
The NEF will provide substantial economic benefits, creating 800 construction jobs and up to 300 permanent positions. The facility's presence will also spur housing and school growth in nearby towns like Andrews, Texas.LES aims to start selling enriched uranium by 2009, supporting U.S. utilities planning new reactors. The Nuclear Energy Institute praised this development, indicating positive prospects for America's nuclear expansion.
Urenco's plant construction is expected to begin in August, heralding a promising era for New Mexico's uranium industry.
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