ML19254D127

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Discusses Review of Proposed License for Nissho-Iwai American Corp to Export 15,075 Kgs U,Enriched to 1.52% U-235,to Japan.Forwards Application for Export License,N Tsuji & Lv Nosenzo
ML19254D127
Person / Time
Issue date: 09/25/1979
From: James Shea
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19254D128 List:
References
SECY-79-071B, SECY-79-71B, NUDOCS 7910220418
Download: ML19254D127 (3)


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_Q 9-1B Seotember 25, 1979 COMMISSIONER ACTION For:

The Commissioners From:

James R. Shea, Director Office of International Frograms Thru:

Executive Director for Operationy

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Subject:

f PROPOSED LICENSE TO EXPORT LOW ENRICHED URANIUM T0 cp JAPA THE FUGEN ADVANCED THERMAL REACTOR (XSNM0143 ECY-79-71A)

Purpose:

ommission review of proposed issuance of subject license to Nissho-Iwai American Corporation.

Review Dates:

60-day period expires on September 29, 1979 120-day period expires on November 28, 1979 Discussion:

In December 1978, Nissho-Iwai American Corporation applied for a license to export 15,075 kilograms of uranium, enriched to 1.52*,' U-235, to Japan for use as reload fuel in the FUGEN Advanced Thermal Reactor. The material, in the form of UF6, will be shipped to Sumitomo Metal Mining Company, Ltd. for conversion to UO2 and to Nuclear Fuel Industries, Ltd. for fabrication into fuel assemblies.

Facility attachments have been completed for Sumitomo Metal Mining Company, Ltd., Nuclear Fuel Industries, Ltd.,

Ena for the FUGEN facility.

FUGEN is a heavy water moderated, boiling light water cooled, reactor with a 165 megawatt electric output constructed as a national project in Tsuruga City.

It is owned and operated by the Power Reactor and Nuclear Fui.

Development Corporation (PNC).

FUGEN went critical in March 1978 and became operational in March 1979.

The application was forwarded for Executive Branch review and comment on January 25, 1979. On July 30,1979, the Executive Branch (1) advised NRC that issuance of the pro-posed license would not be inimical to the interests of the U.S., including the common defense and security; (2) confirmed that the material will be subject to all the terms and t ditions of the U.S.-Japan Agreement for Cooperation; (3) confirmed that Japan has adhered to the Contacts:

llI i4!

R. Peterson (492-8155) by (492-7984) gg7

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2 Discussion:

provisions of its Agreement for Cooperation; and (4)

(cont'd) advised that there were no material changed circumstances since the submission of its detailed analysis of April 30,1979 on a proposed export of high-enriched uranium to Japan (see SECY-79-14A dated May 11,1979).

Although our regulations do not require that the Commission review applications involving routine reloads of low-enriched fuel, the staff believes this proposed export warrants review by the Commission because FUGEN is an advanced thermal reactor and because no previous exports of fuel to FUGEN have been subject to Commission review.

In 197',, the U.S. supplied 15,469 kilograms of uranium, e r Qhed to 1.52% U-235, to FUGEN under license XSNM00546; and on February 1,1979, the U.S. supplied an additional 408 kilograms of slightly enriched uranium in the form of UF6 to FUGEN under license XSNM01322.

Neither of these export licenses received Commission review as the initial fuel license was issued by the Atomic Energy Commission, and the second request involved material which did not exceed one effective kilogram.

In recent months, the U.S.

has been supplying heavy water to Japan for use as a moderator in the FUGEN facility. A total of 16,001 kilo-grams of heavy water has been authorized under licenses XMAT0005, issued on March 6,1979 after Commission review, and XMAT0030, issued on September 17, 1979 after Commission review (see SECY 79-63 and SECY 79-201B).

Based upon its independent analysis and review of the Execu-tive Branch submission, the staff has concluded that the requirements of the Atomic Energy Act and the NNPA of 1978, or their equivalent, have been met and that the proposed export would not be inimical to the comon defense and security.

It is the staff's understanding that similar law-enriched fuel license applications will be forthcoming.

The staff will treat such applications as routine reloads which would not be forwarded to the Commission for review.

This procedure is authorized by gl10.40(a)(2) of Part 110 and is based on Section 126(a)(2) of the Atomic Energy Act as amended by the Nuclear Nonproliferation Act of 1978./3 2/2 t

3 Discussion: The following documents are forwarded for Commission (cont'd) review of the subject application:(1) application of December 29,1978 (Appendix A); (2) Executive Branch views of July 30, 1979 (Appendix B); and (3) copy of the proposed license (Appendix C). The applicant has requested urgent consideration of this application which is scheduled for shipme it the week of October 8,1979. Recommendation: That the Commissioners approve issuance of the proposed license to Nissho-Iwai American Corporation and that future applications for licenses to export LEU to the FUGEN facility be treated as routine reloads. Coordination: ELD has no legal objection. NhfS technical views will be forwarded separately. ,^, j James R.Shea, DiTector 9/4,5/7'l Offjce of International Programs Enclosures As stated above DISTRIBUTION: Commissioners Commission Staff Offices Exec. Dir. for Opers. Secretariat NOTE: Commissioner comments should be provided directly to the Office of the S 'cre ta ry, by c. o. b. Wednesday, October 3,1979. Commission sta?# office comments, if any, should be submitted to the Commissioners NLT Octobe 1, 1979 , with an information copy to the Office of the Secretar.v If the paper is of such a nature that it requires additional time for analytical review and comments, the ;ommission and the Secretariat should be apprised of when comments may be expected. !f9J 2$[ .}}