IIIII

 11111 -Ll!ll _.illil
q
DOE/EIA-0570(92)

Distribution Category UC-950

Uranium Purchases Report 1992

August 1993

Energy Information Administration

Office of Coal, Nuclear, Electric and Alternate Fuels

U.S. Department of Energy

Washington, DC 20585

This reportwaspreparedbythe EnergyInformationAdministration,the independentstatisticalandanalytical

agencywithinthe Department of Energy. The informationcontainedhereinshould not be construedas

advocatingor reflectingany policypositionof the Departmentof Energyor of any otherorganization.

%-

OI_,TRIII_JTI'O_ O_ THt_ _ IS UNLIMITED I
Contacts

The"Uranium Purchases Report 1992" was prepared by SMD, at 202/254-5500, or to Noel Baithasar, Chief of

the Survey Management Division (SMD), Office of Coal, the Coal and Uranium Data Systems Branch (CUDSB),

Nuclear, Electric and Alternate Fuels, Energy Infor- SMD, at 202/254-5405. Questions of a detailed or

marion Administration. Questions of a general nature technical nature should be addressed to Luther Smith,

should be directed to Howard L. Walton, Director CUDSB, at 202/254-5565.

ii EnergyInformationAdministration/UraniumPurchasesReport1992
Uranium Purchases Report 1992

Background firms that sold uranium to U.S. utilities during 1992

under new domestic purchase contracts. Appendix B

The Energy Policy Act of 1992 (EPACT 1992), Public Law contains a similar listing of firms that sold uranium to

102-486 (October 24, 1992), Subtitle B, 42 USC § 2296b-4, U.S. utilities during 1992 under new import purchase

Sec. 1015, provides that: contracts. Appendix C contains an explanation of Form

EIA-858 survey methodologies with emphasis on the

... the owner or operator of any civilian nuclear processing of Schedule B data.

power reactor shall report to the Secretary (of

Energy), acting through the Administrator of the Uranium Purchases

Energy Information Administration, for activities

of the previous fiscal year-- During 1992, the owners and operators of U.S. civilian

nuclear electric generating units took delivery of 23.6

(1) the country of origin and the seller of million pounds U30_ under purchase contract commitany uranium or enriched uranium put- ments from domestic suppliers, about 3.2 million

chased or imported into the United States pounds less (-12 percent) than in 1991 (Table 1). Natural i

either directly or indirectly by such owner uranium (as U308 and UF6)_ accounted for 21.0 million

or operator; and pounds (89 percent) and enriched uranium accounted

for 2.5 million pounds (11 percent). 2

(2) the country of origin and the seller of

any enrichment services purchased by such Deliveries under new spot contract purchases from

owner or operator, domestic suppliers during 1992 accounted for 8.0 million pounds U308.3 During 1992, 40 new spot contracts

This information is required to be made available to the were signed. The top five origin countries for uranium

Congress annually, delivered under spot purchases were Russia, 4 hhe

United States, Canada, France, and China. IntermediOverview aries accounted for 97 percent of these spot deliveries

from domestic suppliers, and producers and others

In the following sections, data reported by domestic accounted for 3 percent.

nuclear utility companies in their responses to the 1991

and 1992 "Uranium Industry Annual Survey," Form Of the 23.6 million pounds delivered by domestic supEIA-858, Schedule B "Uranium Marketing Activities," pliers in 1992, 7.9 million pounds (34 percent) were of

are provided in response to the requirements in the U.S. origin, 15.1 million pounds (64 percent) were of

EPACT 1992. Data on utility uranium purchases and non-U.S, origin, and 0.5 million pounds (2 percent)

imports are shown on Table 1. Utility enrichment feed were of unspecified origin. The top four origin coundeliveries and secondary nlarket acquisitions of ura- tries for the non-U.S, origin uranium were Russia (25

nium equivalent of U.S. DOE separative work units are percent), Canada (23 percent), Namibia (6 percent), and

shown on Table 2. Appendix A contains a listing of China (4 percent). U.S. utilities also took delivery of

'U3Oa=Uranium concentrate or yellowcake. UF6=Uranium hexafluoride.

2The enriched uranium purchased in 1992 included a small amount of fabricated fuel that was conveyed under an interutility

transaction. This material was from a closed U.S. civilian reactor.

3Asused by the EIA, a ,_potpurchasecontractis one in which all deliveries of materials are scheduled to be completed by the end of the

first calendar year following the contract-signing year. Deliveries can be made during the contract-signing year, but deliveries a_ not

scheduled to occur beyond the first calendar year thereafter. A long-term contractis one in which at least one delivery of material is

scheduled to occur during the second calendar year after the contract-signing year. Deliveries also can occur during the contract-signing

year, during the first calendar year thereafter, or during any subsequent calendar year.

4"Russia" was the origin country reported on the Form EIA-858for 1991and 1992. No further breakdown into the newly formed,

separate Republics, commonly known now as the Commonwealth of Independent States, is available.

EnergyInformationAdministration/Ura.iumPurchasesReport1992 l
Table 1. Uranium Purchases by Utilities, 1991 and 1992

(Thousand Pounds U308 Equivalent)

Quantity

Category 1991 1992

Purchases (Total)" ..................................... 40,947 35,383

Purchases from Domestic Suppliers (Total)b ................. 26,812 23,572

By materialtype: ............ NaturalU308 17,011 17,847

NaturalUF8 7,458 3,180

EnrichedUF6 2,343 2,546

By origincountry:............ Australia 1,374 W

Canada 2,943 5,347

China 1,146 920

France 0 W

Gabon W 0

Namibia 917 1,333

Portugal W W

Russiac 6,824 5,831

South Africa 0 349

Spain W 0

United Kingdom W 0

United States 12,443 7,934

Purchased Imports (Total)° ............................... 14,135 11,811

By materialtype: ............ NaturalU308 12,559 10,263

NaturalUFs 1,576 1,548

By origincountry: ............ Australia 701 2,245

Canada 11,793 7,030

China W W

Gabon W W

Germany W W

Namibia 0 W

Russia W 1,123

South Africa 0 W

aThetotalquantityof Purchasesshownfor 1991 and 1992 represents,for each year,the sum of quantitiesfor Purchasesfrom

DomesticSuppliersand PurchasedImports.

bThetotalquantityshownfor 1991 and 1992 as Purchasesfrom DomesticSuppliersrepresents,for each year, the sum of the

quantitiesshownby materialtype and the sum of quantitiesshownby origincountry.

CThe name "Russia"was used to report data for 1991 and 1992. No further breakdowninto the newlyformed, separate

Republics,commonlyknownnowas the Commonwealthof IndependentStates, is available.

dThetotalquantityshownfor 1991 and 1992 as PurchasedImportsrepresents,for each year,the sum of the quantitiesshown

by materialtype andthe sumof quantitiesshownby origincountry. Imported uraniumreportedas beingof U.S. originis excluded

fromthe importsvaluesshown.

W = Withheldto avoid disclosureof companyidentifiabledata.

Note: Totals may not equal sum of componentsbecauseof independentrounding.

Source: EnergyInformationAdministration,Form EIA-858,"UraniumIndustryAnnualSurvey."

2. EnergyInformationAdministration/UraniumPurchasesReport1992
Table 2. Utility Enrichment Feed Deliveries, 1991 and 1992

(Thousand Pounds U308 Equivalent)

Quantity

1

Category 1991 1 1992

Enrichment Feed Deliveries (Total)a ........................ 37,992 32,045

To U.S. Department of Energy (Total)b ................... 33,852 27,622

U.S. Origin Uranium ............................... 11,711 9,077

Non-U.S. Origin Uranium ........................... 22,141 18,545

By origincountry: ......... Australia 2,641 1,784

Canada 11,327 8,984

China W W

France W W

Gabon W W

Namibia W W

Portugal 0 W

Russiac 3,176 5,146

SouthAfrica W 662

United Kingdom W W

To Non-U.S. Enrichers (Total)d ......................... 4,140 4,423

U.S. Origin Uranium (Total) ......................... 2,120 1,048

Enrichmentsuppliers ...... Eurodif........... W W

Urenco ........... W W

Tenex ........... W W

Non-U.S. Origin Uranium (Total) ...................... 2,020 3,375

Enrichment suppliers: ...... Eurodif ........... W W

Urenco ........... W W

Tenex ........... W W

U.S. DOE Separative Work Unite (SWU)

Purchased or Received in Exchange in the

Secondary Market ...................................... 1,562 1,031

aThetotalquantityof UtilityEnrichmentFeedDeliveriesshownfor 1991and 1992 represents,foreach year,the sumof materials

shippedfor enrichmentto U.S. Departmentof Energy(DOE) andto Non-U.S. Enrichers.

bThetotal quantib;for 1991 and 1992 shippedto U.S. Departmentof Energyrepresents,for each year, the sum of U.S. Origin

Uraniumand Non-U.S. OriginUranium.

CThename "Russia"was used to reportdata for 1991 and 1992. No furtherbreakdown into the newly formed,separate

Republics,commonlyknown nowas the Commonwealthof IndependentStates, is available.

UThetotalquantityfor 1991 and 1992 shippedto Non-U.S.Enrichersrepresents,for eachyear, the sum of U.S. OriginUranium

and Non-U.S.Origin Uranium.

W = Withheldto avoiddisclosureof companyidentifiabledata.

Note: Totals may notequal sum of componentsbecauseof independentrounding.

Source: EnergyInformationAdministration,Form EIA-858,"UraniumIndustryAnnualSurvey."

EnergyInformationAdministration/UraniumPurchasesReport1992 3
11.8 million pounds U308 in 1992 under direct-import, 1992, utility enrichment feed deliveries totaled 32.0

purchase contract commitments. Listed in descending million pounds U308 shipped to both domestic and

rank order, the top three origin countries for uranium foreign enrichment suppliers, nearly 16 percent below

imports were Canada (60 percent), Australia (19 the 1991 level. Deliveries to the U.S. Department of

percent), and (Russia 10 percent). China, Gabon, Energy were 27.6 million pounds (86 percent of total

Germany, Namibia, and South Africa accounted for the deliveries), consisting of 9.1 million pounds (33 percent)

remaining utility imports, of U.S. origin and 18.5 million pounds (67 percent) of

non-U.S, origin uranium. For non-U.S, origin uranium,

Of the 11.8 million pounds imported in 1992, 2.2 the top four origin countries in descending rank order

million pounds were delivered under 15 new spot were Canada (48 percent), Russia (28 percent), Australia

purchase import contracts signed during the year. (10), and South Africa (4). The remaining 11 percent of

Australia, Russia, China, and South Africa were the the non-U.S, origin uranium delivered was from China,

origin countries for 80 percent of the uranium delivered France, Gabon, Namibia, Portugal, and the United

under spot import purchases. Intermediaries accounted Kingdom.

for 59 percent of the import spot deliveries and foreign

producers accounted for 41 percent. Utility enrichment feed deliveries to non-U.S, enrichers

in 1992 totaled 4.4 million pounds U308 (14 percent of

Uranium Enrichment total deliveries). This represents an increase of 7 percent

above like shipments in 1991. Of the 1992 deliveries, 1.0

In 1992, three new long-term enrichment service con- million pounds (24 percent) were of U.S. origin and 3.4

tracts were signed by U.S. utilities, one each with million pounds (76 percent)were of non-U.S, origin

Eurodif, Tenex, and Urenco. s These contracts largely uranium. For U.S. and non-U.S, origin feed materials

involve deliveries beginning in 1996. The U.S. Depart- shipped for foreign enrichment, Eurodif, Urenco, and

ment of Energy reported that it entered into no new Tenex provided enrichment services.

long-term contracts for enrichment services in 1992.

Several utilities reported modifying their existing U.S. In addition to meeting their needs for enriched uranium

DOE enrichment contracts during 1992 to change quan- through primary enrichment service contracts, utilities

tities, prices, and/or deliveries or to elect and finalize also obtained enriched uranium in 1992 through purfuture enrichment options remaining under those chases or exchanges in the secondary market. These

contracts, transactions contained 1.0 million pounds U308 equivalent of U.S. DOE separative ,work units. This quantity

Actual deliveries of uranium feed to enrichment plants was 34 percent less than like secondary market

each year by U.S. utilities are shown on Table 2. In transactions in 1991.

-_Eurodif, a consortium of Cog6ma, 37percent; Sofidif, 25percent (Cog6ma 60percent and OIAETI(Iran) 40percent); Synatom (Belgium)

and Enusa (Spain), 11 percent each; and ENEA and AG1P(both Italy),8 percent each, operates the Georges Bessegaseous diffusion plant

at the Tricastin site in France. Cog6ma handles sales and marketing of Eurociifproducts and services, excluding sales to Eurodff partners.

Tenex (Techsnabexport) utilizes four gas centrifuge technology plants at Ekaterinburg,Angarsk,Krasnoyarsk,and Tomsk in Russia. The

four plants are owned byThe Ministry of Atomic Energyof the Russian Federation(Minatom). Urenco is a European consortium created

by treaty between Germany, the Netherlands, and the United Kingdom. Urenco has threegas centrifuge plants, each largely owned by

the country wherein it is located: Almelo, the Netherlands, 49 percent each by UCN (Dutch Government) and Uranit (PREAG,RWE,

I-loechst,and NUKEM (Germany)), and 2 percent by BNFL;Gronau, Germany, 96percent Uranit and 2 percent each by UCN and BNFL;

and Capelxhurst, United Kingdom, 96 percent BNFLand 2 percent each by UCN and Uranit.

4 EnergyInformation AdminlatrationUrani J umPurchMu Report1992
Appendix A

Sellers of Uranium to U.S. Utilities

Under New Domestic Uranium Purchase Contracts, 1992

The following listing provides the names of companies contracts signed, consisting of 40 spot and 13 long-term

that were reported by domestic utilities as the sellers contracts. The companies were reported on Schedule B,

(i.e., the other party) of uranium under new purchase "Uranium Marketing Activities," on the 1992 Form EIAcontracts signed during 1992 for deliveries from domes- 858, "Uranium Industry Annual Survey."

tic suppliers. In 1992, there were 53 new purchase

Seller (Other party named in purchase contract)

Allied-Signal, Inc.

Everest Exploration, Inc.

Nuclear Fuels Corporation of South Africa

NUEXCO Trading Corporation

NUKEM, Inc.

Power Resources, Inc.

UG, U.S.A., Inc.

EnergyInformationAdministration/UraniumPurchasesReport1992 5
Appendix B

Sellers of Uranium to U.S. Utilities

Under New Imported Uranium Purchase Contracts, 1992

The following listing provides the names of companies imports purchase contracts signed, consisting of 15 spot

that were reported by domestic utilities as the sellers and 11 long-term contracts. The companies were

(i.e., the other party) of uranium under new import reported on Schedule B, "Uranium Marketing Activpurchase contracts signed during 1992 for deliveries of ities," on the 1992 Form EIA-858, "Uranium Industry

foreign-origin materials. In 1992, there were 26 new Annual Survey."

Seller (Other party named in purchase contract)

BP Minerals

Cameco Corporation

China Nuclear Energy Industry Corpmation

COGEMA

NUEXCO Trading Corporation

UG. U.S.A., Inc.

Uranerz Exploration and Mining Limited

Urangesellschaft Mbh

Western Mining Corporation (WMC)

* U.S.G.P.0.:1993-343-169:80174

EnergyInformationAdministration/UraniumPurchasesReport1992 "/
Appendix C

Survey Methodology

Survey Design the items they were intended to measure); and (6)

adjustments (errors might be made in estimating values

The Energy Information Administration (EIA) con- for missing data).

ducted the ninth annual "Uranium Indu._,try Annual

Survey," Form EIA-858, to collect information from all Because the "Uranium Industry Annual Survey" is a

companies known or believed to have been involved in universe survey rather than a sample survey, sampling

the U.S. uranium industry during 1992. Included in this errors do not affect the data provided in this report. 6

survey are domestic utilities that own and/or operate Although it is not possible to present estimates of nonnuclear power reactors. _e 1992 survey form was sampling error, precautionary steps were taken at each

mailed to respondents in December 1992. stage of the survey design and operation to minimize

the possible occurrence of these errors. These steps are

Respondents to the "Uranium Industry Annual Survey" described below, and the errors they were designed to

were asked to provide data current to the end of 1992 minimize are named (in parenthesis).

about their Uranium Raw Materials Activities (Schedule

A), Uranium Marketing Activities (Schedule B), and Survey Universe and Frame (Coverage Errors) Uranium Industry Financial Status (Schedule C).

In particular, Schedule B covers: uranium transaction The survey universe includes all nuclear utilities

parameters including name of the other party; type of involved in the U.S. uranium industry. The criteria for

transaction; uranium materials covered; origin for the responding to Schedule B are: firms that during 1992 (1)

uranium materials and conversion and enrichment held existing contracts covering the Sale, Purchase,

services, and delivery destination; importation and Exchange, Loan, or Loan Repayment of uranium or

exportation; contract pricing mechanism; contract _p- entered h_to similar new contracts; (2) held inventories

tions; litigation status; schedule of uranium deliveries of urar,_um in any form excluding reactor-inserted,

with corresponding prices; uranium inventories; fabricated fuel; (3) maintained a forward-coverage,

materials shipped for enrichment and secondary market uranium-inventory policy (utilities only); (4) had

acquisitions of separative work units (SWU); projected uranium available for sale; and/or (5) made actual

enrichment feed deliveries; and unfilled market deliveries of uranium feed materials to any enrichment

requirements. Quantities of uranium reported are as supplier.

equivalent U308 to the nearest thousand pounds.

The respondent list used for the Form EIA-858 survey

The data collected on Form EIA-858 are subject to was developed from a frame of all establishments

several sources of error. These sources are: (1)coverage known to meet the selection criteria. The frame of

(the respondent frame rrfight not be complete or, on the potential respondents was compiled from previous

other hand, there might be double counting); (2) non- surveys and from information in the public domain. As

response (all units that are surveyed might not respond it specifically relates to Schedule B, the frame was

or might not provide all the information requested); (3) intended to cover the following: all utilities owning

respondents (respondents might commit errors in report- nuclear-fueled generating stations, fuel converters and

ing the data); (4) processing (the data collection agency fabricators, and utilities with whole or partial

might omit or incorrectly transcribe a submission); (5) ownership in operating or planned uranium-fueled

concept (the data collection elements might not measure power plants.

6Samplingerror is a measure of the variation that occurs by chance because a sample rather than a complete enumeration of units is

surveyed.

EnergyInformationAdministration/UraniumPurchasesReport1992 9
Survey Procedures (Nonresponse) the data item definitions. No data in the data base were

changed without first consulting with the reporting

The survey forms were sent via first class mail to company. Computer edits were also used to identify

ensure their receipt only by the proper res_.ondent keypunch errors, out-of-rangevalues, and unlikely data

organization. If the U.S. Postal Service was unable to combinations. These edits also were either corrected to

deliver the survey form, the corrected address was represent the data reported on the submissions or were

obtained where possible. All known nuclear utilities changed only after confirming tl_e corrected values by

currently conducting business in the U.S. uranium telephone conversations with company representatives.

industry were contacted during this survey. Data coding and entry errors were eliminated by

proofing data after entry. All changes to reported data

The Form EIA-858 is a self-administered questionnaire were documented.

requesting data about many areas of company operations and finances. The scope of the questions is Response Rates

necessarily broad, and self-reporting of companyspecific data is required. Schedule B of Form EIA-858 was mailed to 145 firms

and to the Office of Business Operations, Deputy

Cooperation from industry on the 1992 survey was, as Assistant Secretary for Uranium Enrichment (NE-32),

in previous years, excellent. A large number of U.S. Department of Energy. All of the schedules that

respondents replied to the form within the specified were mailed to nuclear utilities and to NE-32 were

deadlines. Those that had not responded by the due returned (100 percent response) with information as

dates were telephoned to encourage submission of the requested on the form. Of course, not all Schedule B

forms, and those calls resulted in the submission of data items were applicable to each responding utility or

most of the remaining forms. In addition, a followup to NE-32.

letter was mailed to nonrespondents requesting compliance with the survey. Subsequently, telephone calls

were made to obtain forms not yet submitted. In some Missing Data

instances, company data were modified/collected

through telephone conversations made to clarify items Omissions of data identified during the prescreening

reported/omitted on their submissions, and editing of the data fell into two categories: data

that were withheld because of contractual constraints or

To reduce the reporting burden on the respondents, bc?-_.asea particular contract was under litigation.

data for contracts and selected other data elements from Respondents were contacted regarding omissions to

the prior year's survey form were preprinted on each verify that the data could not be reported. Only

respondent's 1992 questionnaire, confirmed company-reported data are contained in the

data base and included in this report.

Data Editing, Analysis, and Processing

(Respondent and Processing Errors) Nondisclosure of Data

The survey forms were logged in and reviewed by To protecttheconfidentialityofindividual respondents'

agency personnel prior to data entry into the Uranium data, a policy was implemented to ensure that the

Industry Annual System, an automated data base con- reporting of survey data in this report would not

taining all current and historical data from each associate those data with a particular company. This

company's submission. The data base is maintained on policy is in compliance with EIA Standard No. 88-05-06,

the EIA computer facility in Washington, DC. After "Nondisclosure of Company Identifiable Data in

entry into the data base, a copy of each Schedule B was Aggregate Cells." In tables where the nonzero value of

distributed to the Survey ManagementDivision analyst a cell is composed of data from fewer than three

for review and approval. The submissions were companies or if a single company dominates a table-cell

checked for internal consistency, and the reported data value so that the reporting of the value would lead to

were compared with previous collections of similar identification of a company's data, then the EIA

data. After reviewing the submissions, the analyst classifies the cell value as "sensitive," and the cell value

consulted with the reporting company, as needed, to is withheld ("W') from the report. Within a table with

resolve data problems and to confirm any corrections of a sensitive cell value, selected values in other cells of

the data. Data areas that were reviewed and the the table are also withheld, as necessary, so that the

corrections that were made differed from company to sensitive cell value cannot be computed using the

company. Most represented differing interpretations of values in published cells.

_IU .S . C.P.O. :1993-3/z3-169;8017_,

I0 Energy Information Administration/Uranium Purchases Report 1992
I

i I

I