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Uranium appears to be gaining traction in an area which has been the linchpin of the global oil and gas industry over the years.
By Dave Brown – Exclusive to Uranium Investing News
An area which has over the decades been the beacon of global oil and gas reserves appears to have its eyes on the rearview mirror, as interest in power from uranium gains traction in the Middle East. The United Arab Emirates has selected Braka,a very sparsely populated area 53 kilometres from Ruwais, itself a very modern oil and gas industrial complex, as the site for the country’s first nuclear power plant.
The Braka site is very close to the border with Saudi Arabia and closer to the capital city of Qatar, Doha, than to Abu Dhabi, about 240 kilometres to the east. With the coastal municipality of Dubai another 150 kilometres along the coast, Braka is well situated away from population centers. The Emirates Nuclear Energy Corporation (ENEC) announced that Braka was selected from ten shortlisted sites, all of which were suitable for nuclear build, on the basis of its qualities including: environmental considerations, seismic history, distance from population centers, water supplies, and proximity to the electrical power grid.
Limited construction license applications and environmental assessments for four reactors have been submitted. The reactors will each produce a capacity of 1,400 megawatts and an $18.6 billion contract has been awarded to Korea Electric Power Corp. (NYSE:KEP) to build the four nuclear plants by 2020. Additionally, a strategic environmental assessment for the project has been submitted to the Environment Agency – Abu Dhabi (EAD) addressing environmental impacts and mitigation including for construction work.
As part of the South Korean group that will engineer the power plant, it is incumbent for Doosan Heavy Industries to develop the major components for all four reactors. The limited license that ENEC has applied for will enable Doosan to make steam generators, coolant pumps, pressurizers and the reactor pressure vessel. Manufacturing for some of these long lead items is anticipated later this year by the Emirates Nuclear Energy Corporation. Braka 1 is slated to operate in 2017, with its three sister plants following at one-year intervals.
Iran Raising Stakes
On Sunday, Iran’s foreign minister, Manouchehr Mottaki, and the International Atomic Energy Agency’s chief, Yukiya Amano, met to discuss a stalled nuclear fuel offer designed to ease tensions with the West. The two were not able to reach a compromise or consensus on a preplanned Iranian objective. The deal centers on Iran shipping 1,200 kilograms of low-enriched uranium to Russia and France to make into fuel for a medical research reactor. Last October, Iran agreed to this offer in principle, later rescinding it for a simultaneous swap on Iranian soil, a change which other parties to the deal said was unacceptable because it would fail to build trust.
The West believes Iran’s atomic program is ultimately aimed at making weapons. Tehran denies this, although this quantity of uranium could be enough for a single bomb if purified to a high enough level. The 2.5 hour meeting was requested by Iran and “was held in a business-like atmosphere,” the International Atomic Energy Agency said in a statement following the meeting.
Mr. Mottaki said “I see very good chances that we will find ways for a fuel swap. Now is the time for a new beginning, for new talks.” He suggested successful negotiations would lead to further diplomatic discussions and that sanctions would be the wrong move. Mr. Mottaki said he discussed with Mr. Amano ways to find a deal that would be acceptable to all participants and the agency’s inspections in Iran, having exchanged views on possible ways to implement the fuel proposal. At the end of the meeting it was not clear that any new proposals had been discussed.
Moscow and Beijing have stated that decisions to join negotiations with the United States, Germany, Britain and France on a fourth round of United Nations sanctions against Iran were partly due to the refusal to accept the IAEA fuel offer. Austria, which is on the United Nations Security Council until the end of this year, and previously has criticized Iran’s human rights record said Iran must start cooperating with the international community on its nuclear program or face punitive measures.
Australian Approval for Uranium Exports to Russia
Australian Foreign Minister, Stephen Smith, will authorize a nuclear agreement allowing uranium exports to Russia for energy purposes. Mr. Smith believes the agreement will strengthen cooperation on safeguards to protect exports as Australia and Russia “both stand firmly against terrorism and violent extremism.” Australia will continue to block uranium exports to India for energy use as it has not ratified the Nuclear Nonproliferation Treaty.
With help from Assistant Editor Vivien Diniz