CORRECTING and REPLACING USEC Achieves American Centrifuge RD&D Milestones
BETHESDA, Md.--(BUSINESS WIRE)--Dec. 10, 2013--
Please replace the release with the following corrected version due to
multiple revisions.
The corrected release reads:
USEC ACHIEVES AMERICAN CENTRIFUGE RD&D MILESTONES
USEC Inc. (NYSE:USU) announced that over this past weekend a full
production-scale cascade of 120-machines achieved 20-machine years of
operations at commercial plant specifications. During that performance
run, USEC successfully completed three important milestones set by the
Department of Energy (DOE) for the American Centrifuge research,
development and demonstration (RD&D) program.
“The demonstration cascade is operating as expected, exceeding the SWU
production, machine availability and cascade performance criteria
established by DOE,” said John K. Welch, USEC president and chief
executive officer. “Our teams in Oak Ridge and Piketon rose to the
challenge of the RD&D program and are showing once again why they are
considered to be the best in the world.
“The RD&D program is designed with DOE to demonstrate the technological
readiness of the American Centrifuge to meet national security needs,”
added Welch. “We continue to work with DOE and the Congress to determine
the American Centrifuge’s role in meeting those needs as we continue to
pursue the development and deployment of this important technology.”
The June 2012 cooperative agreement, as amended, that established the
RD&D program with DOE includes nine technical milestones for the RD&D
program. Six of the milestones have been completed and certified by DOE.
The remaining three milestones that have just been completed, subject to
DOE certification, involve demonstrating centrifuge manufacturing
quality, centrifuge operational reliability and demonstration of
sustained production of 340 SWU at commercial conditions for 20-machine
years.
Complete documentation supporting successful completion of these three
milestones will be submitted to DOE within the month for certification.
The RD&D program will continue while USEC completes additional testing
with the cascade and a mandatory NRC-required annual inventory of
uranium hexafluoride process gas. An independent board of managers
provides oversight for the program.
The deployment of the American Centrifuge technology would ensure that
the United States has its own indigenous uranium enrichment technology
to meet national security needs. With the recent cessation of enrichment
at the gaseous diffusion enrichment facility in Paducah, Ky., the United
States for the first time in more than 60 years is without its own
technology in operation to enrich uranium and today is completely
dependent on foreign-controlled technologies for the production of new
nuclear fuel that generates almost 20 percent of America’s electricity.
The cooperative agreement, which has been incrementally funded, provides
for 80 percent DOE and 20 percent USEC cost sharing for work performed
during the period June 1, 2012 through January 15, 2014. On November 20,
2013, USEC and DOE entered into an amendment to the cooperative
agreement for an additional $15.7 million in government funding for the
funding period November 2 to January 15, 2014, bringing total government
funding to $256.9 million. The RD&D program remains under budget and
within schedule.
Forward Looking Statements
This press release contains “forward-looking statements” within the
meaning of Section 21E of the Securities Exchange Act of 1934 - that is,
statements related to future events. In this context, forward-looking
statements may address our expected future business and financial
performance, and often contain words such as “expects”, “anticipates”,
“intends”, “plans”, “believes”, “will” and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For USEC, particular risks and
uncertainties that could cause our actual future results to differ
materially from those expressed in our forward-looking statements
include, but are not limited to: risks related to the ongoing transition
of our business, including uncertainty regarding the transition of the
Paducah gaseous diffusion plant and uncertainty regarding the economics
of and continued funding for the American Centrifuge project and the
potential for a demobilization or termination of the project; the impact
of enrichment market conditions, increased project costs and other
factors on the economic viability of the American Centrifuge project
without additional government support and on our ability to finance the
project and the potential for a demobilization or termination of the
project; limitations on our ability to provide any required cost sharing
under the RD&D program; uncertainty concerning our ability through the
RD&D program to demonstrate the technical and financial readiness of the
centrifuge technology for commercialization; uncertainty regarding
funding for the project following completion of the RD&D program and
uncertainty concerning the ultimate success of our efforts to obtain a
loan guarantee from DOE and other financing for the American Centrifuge
project or additional government support for the project and the timing
and terms thereof and the potential for a demobilization or termination
of the project if additional government funding or other additional
government support is not in place at the end of the RD&D program;
potential changes in our anticipated ownership of or role in the
American Centrifuge project, including as a result of the need to raise
additional capital to finance the project; the impact of actions we have
taken or may take to reduce spending on the American Centrifuge project,
including the potential loss of key suppliers and employees, and impacts
to cost and schedule; the potential for DOE to seek to terminate or
exercise its remedies under the RD&D cooperative agreement or June 2002
DOE-USEC agreement; changes in U.S. government priorities and the
availability of government funding, including loan guarantees; and other
risks and uncertainties discussed in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K and
quarterly reports on Form 10-Q, which are available on our website at www.usec.com.
We do not undertake to update our forward-looking statements except as
required by law.
Source: USEC Inc.
USEC Inc.
Investors: Steven Wingfield (301) 564-3354
Media:
Paul Jacobson (301) 564-3399
