ML19254D589

Recommends Approval of Application by Marubeni America Corp for License to Export 620 Kg U,Enriched to 12.18% U-235,to Japan

ML19254D589
Person / Time
Issue date:	10/04/1979
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
Shared Package
ML19254D590	List: ML19254D589 ML19254D593
References
SECY-79-342B, NUDOCS 7910290142
Download: ML19254D589 (4)

Text

{{#Wiki_filter:- "ctober 4, 1979 SECY-79-3423' COMMISSIONER ACTION for: The Cemissioners Frum: James R. Shea, Of rector Office of International Programs Thru: / Executive Director for Operations /

Subject:

APPROVAL OF PROPOSED LICENSE TO EXe0RT LCW ENR URANIUM TO JAPAN (XSNM-1510, SECY-79-342A) Purtose: Comission license to Marubeni AmeMca Corporation. view of proposed i Review Dates: 60-day period expires on October 23, 1979 120-day period expires on Cecember 22, 1979 Discussion: In May 1979, Marubeni America Corporation applied for a 12.18% U-235, to Japan for use as reload fuel in The niaterial, in the form of uranium hexafiuoride be converted to 00 bySumitemoMetalandMinihgCcmpany, 2 Ltd. and fabricated into fuel assamblies by Power Reactor , and Nuclear Fuel Develegnent Corpora. tion. J00Y00 is a 3J MWt experimental sodium cooled fast breeder reactor which achieved criticality in 1977. Japan's first major fast breeder research facility. It is also U.S. has furnished fuel for this facility since it became The opera tional. pernitted the export of approximatelyLicense No. XSNM-208, is 972 kilograms of uranium enriched to 23% U-235 as the initial core for this reactor. On August 18, 1978 which authorized the export of 814.05 kilograms enricnedlicen to 12.18% as reload fuel (see SECY-79-335). The application was forwarded for Executive Branch review and cement on May 16, 1979. On August 24,1979, the Executive Branch (1) advised MRC that issuance of the pro-

osed license would not be inimical to the interests o U.S.,

including tne ccmon defense and security; (2) confir-d

Contact:

e .D. Lee, 492-7984 ,,,l 3 Peterson, 492-8155 ic/ 7 910290 lN

2 Discussion: that the material will be subject to all the terms and (cont'd) conditions of the U.S.-Japan Agreement for Cooperation; (3) confimed tiat Japan has adhered to the provisions of its Agreement for Cooperation; and (4) advised that there are no material chanced circumstances since the submission of its detaile7 analysis of April 30, 1979 on a proposed export of high-enriched uranium to Japan (see SECY-79-14A dated May 11,1979). The staff has been informed that facility attachments have been completed for Sumitomo Metal and Mining Ccmpany, Power Reactor and Nuclear Fuel Development Corporation, and the JC0YOO reactor. The staff believes that there are no material changed circumstances concerning exports to Japan which would affect the Comission's consideration of licensing criteria and which have occurred since issuance of export licenses (e.g., XSNM-ll83) for similar material to Japan after Ccamission review. Accordingly, the staff believes that this pror ed export license may be issued. This is based on section 126(a)(gl10.44(a)(2) of Part 110 and procedure is chorized by

2) of the AEA as amended by the Nuclear Nonproliferation Act of 1978.

The f"ollcwing documents are forwarded for dommission review of the subject application: (1) applicatioA of May 7,1979 (Appendix A); (2) Executive Branch views of August 24, 1979 (Appendix B); and (3) copy of proposed license (Appendix C). This action involves no new resource requirements. NMSS Technical NMSS notes that JOYO is an L imental fast breeder reactor Review: which utilizes plutonium-uranium mixed oxide (M0X) fuel. The Pcwer Reactor and Nuclear Fuel Levelopment Corporation (PNC) fuel fabrication plant to which the UO2 (converted by Sumitomo Metal and Mining Ccmpany) will be shipped is basically a plutonium fuel development lab. It is assumed that this exported uranium will be used in the fabrication of M0X fuel. Facility attachments are in force for the coversion facility, the fuel fabrication facility, and the reactor itself. The enrichment of the material to be exported will require careful separation frcm the other LEU fuel at the conversion and fabrication facilities. This should facilitate material control and accounting. 1221 350

3 NMSS does not have sufficient information on safegaards imple-mentation at the conversion and fabrication facilities to adequately evaluate them for the purposes of this export. In a June 1979 preliminary draft report (not yet available to the public), Mr. Slotadan Nekicenovic, former Director of Safeguards for the IAEA, has raised a number of concerns regarding IAEA inspection procedures, particularly those in EURATOM and Japan. He indicates, in fact, that Japan and the associated EURATOM countries receive " preferential" treatment since the IAEA relies to a great extent on the safeguards procedures of their national safeguards systems and has reduced its own inspcction efforts to the " observation" level for the most part. He feels that this " observation" concept, negotiated by the Japanese in the Protocol to the IAEA-Japan Safeguards Agreement, has reduced the IAEA independent verification and inspection to "a small portion of that anticipated by the initial safeguards agreements." Comissioner Bradford has requested a ccmplete report on the question of IAEA safeguards in Japan, based on Mr. Nakicenovic's preliminary draft report. IP is currently seeking infomation frcm the Executive Branch. With regard to physical security, NMSS has reviewed the program for Japan and found it adequate for the purposes of this export. A Physical Security Analysis which included Oarai, where J0Y0 is located, was forwarded to the Cemission as SECY 78-4988. Rec 6mendation: That the Comissioners approve issuance of\\he proposed license to Marubeni America Corporation. Coordiliation: ELD has no legal objection. NMSS coments as stated above. ames R. Shea, Director i *-J -71 /ffice of International Programs enclosures: stated b

4 DISTRIBUTION: Comissioners Comission Staff Offices Exec. Dir. for Opers. Secretariat ..JTE : Comissioner coments should be provided directly to the Office of the Secretary, by c.o.b. Tuesday, October 16, 1979 Comission st," office cements, if any, should be submitted to the Ccamissioners NLT Oc'.coer 12, 1979 with an information copy to the Office of the Secretary. If :ne paper is of such a nature that it requires additional time for analytical review and coments, the Comissien and the Secretariat should be apprised of when ccments may be expected. e i ( t 0 - - + - - h-=a-e em esm. m e. em m.- .w= + e-w ae. en

APPENDIX A ^ 1221 353 t m.- = -. _ _ _

FCKM NRC-7 ~ U.S. NUCLEAR REGut ATUMT Uunensswwe APPRQvED gy GAO s.1sc22stRoss21 7483 APPLICATION FOR LICENSE TO EXPORT NUCLEAR n CPR sto-MATERIAL AND EQUIPMENT (see tratruccornon Reverw/ 2.NRC wo w -w m. occxsr M a ~ APeuCANrS j o4TE ce muCATioN n.neuCaurs RutRsNca lYSWrn&lWOf " N o 0 0 /uP M..- d uSs 5-7 -79 ZH-0102 uSE

3. APPUCANTS NAME AND ADORESS l RlS

4. SUPPUER'S NAME AND ADORESS fR35. W tCommere 11 acaesar a not sucot*=" o' m*cma'l a.NAME MAPUBEN! A. MICA CORPORA"' ION

. STREET ACOMESS a.NAME 200 PARK AVENUE DetAF"'vrN'" or "Ter'-v

CITY STATE Z1P CO DE D. STREET ACOMESS NEW YORK N.Y.

10017 OAK RIDGE OPERA"' IONS

. T E LEP MON E NU M S E R lAr.e Goor - /Wumour - sstanssort/

c. CITY STATI Z3P CCDE (212)973-3437'- MR.

E. KU30 OAK RIDGE N 379 " .5. FIRST SHIPMENT

6. FINAL SHIPMENT 7. APPUCANrS CCNTRACTUAL 8. PRCPCSED LICENSE

9. U.S. DEPARTMENT OF ENERGY SCHEDULED SCHEDULED DELIVERY DATE EXPIRATION DATE CCNTR ACT NO. (Jf Kam.nl G M,.

. E. ids id T?.M MARCH, 1980 MARCE, 198C MARCE, 1980 DATE OF E/L NOT KNCWN YE"'

10. ULTIMATE CONSIGNEE JttS 7 0 '3 " 5.34 6 11. ULTIMATE ENO USE I '-

"'% E. fincsuae acarrt or tacrk'ty namel s.NAME POG MCTR & WN C:Emp ?OWER REAC"'OR & NUCLEAR FUEL DEVELOpMINT ORP.,OEN NWW CEE 3 STREET Acc.REs CORP

• EXPERIMENTE FAST 3REEDER REACTO 9-13. 1-CHOME AKASAKA,MINA"t-K L 4QQ2, nag ((A-ggg,QgAgAI.gA[gg

. ::TY - STATE - cCUNTRY j'S M.T M 6 Asinfe@I C 1.

I3ARSGI, JAPAN TOKYO, JAPAN i t.. 1L INTERMEDIATE OCNS1CNEE kRtSM ; :rst.W. m113. INTERME01 ATE END USE IT -..~.C.E ~~

• • "^"'

SUMITOMO ME"'AL AND MDTING CO., LTD. SCMITOMO MI'"AL AND MINING CO., LTD. TOKAI PLANT ( CONVE3'"'A UF -CO ), 6 2 2600 ' TOJUKU, IS EIGAMI, TO:GI-MURA,

3, SEINE AS EI, MINATO-K"

,.3a, ~h,., unPAN .i.

O!?Y - STATE - CCUNTRY TOFYO, JAPAN t sa. EsT. c4TE Os sms? usE APR2, 1980 14 INTERMEDt ATE OCNS3GN EE pft1EC".~; N ' "C 15. INTERMEDIATE END USE r-M-N -

I . UCLEM FUIL DEVr'e.OPMD T N d' N REACTOR & NCCLEARFChI.DFVTLOP-DCNER REACTOR & COFu ^ Eh W v - (.M:_, ZA3RICATCR) ~ - sTR EET A--R ass TOEKAI WOPE. ?v 5 '3-b'a ? A GSAKAV7 NATO-KU' 3 71, CEAZA-MURAMATSU, TOEVLI-KURA ' ^ ~ ' '~ 7 city - stare - couNTR Y G.KA-GUN, I3ARAGI, JAPAN. TOKY0, JAPAN 1sa. EST. DATE CP FIRST USE O(T'r")V trD, 1Qgn 16.

17. DESCRIPTION

18. MAX. ELE. MENT L9. M AX. 20. MAX 21.

NRC (/newe enem,cs/ and anysca/ form of nucsear mstenatigive dos /ar ralue c/ WEIGHT WT. % ISCTCPE WT. UNIT USe unar ocuooment and comw. r ~l .t !.. ENRICEED CRANIUM EIXAFLCORIOE (UF } ~ 6 i 620 12.181 75.516 KG t " O $}L.Qy33.. ~~ e u r um

• • * U t'l Cd Xj g

l C'"L "

24. COUN RTE 5 WHICH ATTACH

• COUNTRY OF C AIGIN.-

h ?"-t'W $$MTR:f OF3RI,gr$NM SOURCE MATERIAL WHERE'ENRICHEDv0ft @UCED SAFEGUAstDS tif Known) U.S.A. C.S.A.

5. ADDITION AL IN FCRMAT1CN (Use snoarste srwerif necassurw

,,_, b 33b G3Al3LS i

5. Tw..ooi.e.nt c.ruf tn. tn.

oncinon is orw.e in confonnay wnn r,ts. t o. Coe. of F.e.r R.eutation.n4 m.a inform.t.on in en spoinstion i. correct to tn. nest of han/her k,iowneoge. /

n. T1TLE l

f a. SIGNATURE g/ g, gag;7g,ggg;gg 77gg pggg73337 - AUTHOR 12ED CPFICIAL 9,u M A 9 W N M ~

MONDEUk A M E R I C A C. O R P O R A T I O N (212) 973-6500 N EW YORK. N. Y.10 017 200 PARK AVENUE May 7, 1979 CERTIFIED MAIL L/No. mal-EO-5858 SPECIAL DELIVERY U. S. Nuclear Regulatory Cc= mission Washington, D. C. 20555 Att: Mrs. Betty L. Wright Export / Import & International Safeguards Office of International Programa Subj ect: Application for an Export License of Special Nuclear Material - Experimental Fast Breeder Reactor "Jooyco", Power Reactor & Nuclear Fuel Development Corp., Japan Gentlemen: Pursuant to 10CFR110-5 we hereby apply for a. license to execrt to Experimental Fast 3:eeder Reactor "Jooyoo" of Power Reactor & Nuclear Fuel Development Corp. the special nuclear material: enriched uranius hexafluoride as described in the attached Form NRC-7 dated 3/7/79. As shown on the F'orm NRC-7, the UF6-UO2 conversion is scheduled to be made by St=itomo Metal and Mining Co., Lt$g in Japan. The material is to be owned at ti.te of export by the Power Reactor & Nuclear Fuel Development Corp. and to be used for their second reload fuels of the above-referenced reactor. Thank you very much for your kind acuntion to this applicat. ion. Yours truly, y c. m } l) 3 3 rc <- ,// MARU3ENI AMERICA CCRPORATION . s ~ E. Okuda Machinery Division I SCd' S/.S 7.17;p.. n.c C.*n DCM EO/pd enc. cc: Mr. K. Suzuki, E=bassv of Jacan - m 6 E O ~ TOK/3673 e... bi!! Y TELrt: ITT (NY) c.M49 ?.CL.NY) 20-c85 TU (NY) C8 24 4 CASI.T.: MAR:3Cil N.RL h _ h, (1) _ _..-l

e -w.e em e me me-O e e O APPENDIX 8 t .-\\ 1221 356 ,4gg-. u .ee. ems- +ww -.-, m.e + we= es. e-w,a.e.mW&ee=

h-5 p.jif $b= \\ DEPA RTM ENT OF STATE ~~ {' j p:.. wasnargton O.C. 20520 BUREAU OF CCEANS AND INTERNATIONAL

==._ ENVIRONMENTAL AND SCIF.NTIFIC AFFAIRS )(fN & g/d ...::-~" jff OO&W l AUG 2 41979 } {E.: 5-Mr. James R. Shea 9 M Director of International Programs E rp ij~ 5= United States Nuclear Regulatory Cor:.missio@(f 4 ,E;*m ~z e Rcom 6714 - MNBB u> 55?" Bethesda, Maryland j $, C e - s =

Dear Mr. Shea:

a .2 bt This letter is in response to your letter dated May 16, 1979, requesting Executive Branch views as to ZllT"1

~ =

whether issuance of an export license in accordance with the application hereinafter described would be 5~=" inimical to the common deferse and security of the EEE United States and whether the proposed export meets the applicable criteria of the Atomic Energy Act of =. _ 1954, as amended by the Nuclear Non-Proliferation ,gg-.- Act of 1978 (P.L. 95-242): E-{-} NRC No. XSNM01510 -- Application by b Marubeni America Corporation for a ri \\ authori::ation to export to Japan 75.516 kilograms of U-235 contained in 620 _, = kilograms of uranium in the form of

r:.

uranium hexafluoride enriched to a maxi-Mk mum of 12.18 percent. This low enriched

=..

uranium is to be converted to UO DY !== 2 Sumitomo Metal and Mining Co. Ltc. and i.... fabricated into fuel assemblies by Power t:: Reactor and Nuclear Fuel Cevelopment Corporation for reload of the Joyo is... ("JCOYOO") Experimental Fast Breeder Reactor at Carai. Eii:.. The proposed export would take place pursuant to

=

the Agreement for Cooperation Between the United States 5, arid Japan as confirmed in a letter from the Embassy of M- -- Japan, a copy of which is enclosed. Japan has adhered Eg..- to the provisions of'its Agreement for Cooperation with [;.. the United States. -> g -Mi ggg )J Z1.. z. J. Copy t,o POR aM AC : ?. 3 7. '7 4 ,_ a _- y h T1.'D sC e q;,; fg - qIh,Uq /,d {f_. _ m. o e v... aV

h...

ZZ_ gE.. ti== ~ i .~b ~ _.. .... E -- 55: The Executive Branch has reviewed this application 25 7. and concluded that the requirements of the Atomic Energy fL.. Act, as amended by P.L. 95-242, have been met and that _T T-~~ the proposed export will not be inimical to the common _T___ defense and security of the United States. A detailed analysis for Japan was submitted April 30, 1979 for NRC Case No. 1435. There has been no material change in cir-eumstances since that submission. =.. b.. On the basis of the foregoing, the Executive Branch

i..

recommends that the license be issued. _g-- Sincerely, =. =. - N w ll PA,/ l uouis V. r senzo v ~E _.. Deputy Assistarit Secretary . 2.T. \\, T:.- _ =...

Enclosure:

.;. ~ Assurance letter ~~

= --

~. *. ^.. l s, - ~ - r ~""5- ~ ~ _.. b.b. A E _=.:.. = :.- - ~ ~.:"..'.'.. r

\\ ( (_ ~ EMBASSY OF JAPAN 2520 MASSACHUSETTS AVENUE. N.W. WASHINGTCN. D.C. 20C08 m zu.22ss August 3, 1979 Colonel Vance H. Hudgins Assistant Director for Politico-Military Security Affairs Division of International Security Affairs Depart =ent of Energy Washington, D.C. 20545

Dear Colonel Hudgins:

Concem ing import of the special nuclear material for the facility no.ted below, this will confirm that the Govern =ent of Japan appointed Powa-Reactor and Nuclear Fuel Develocuent Corcorat. ion (PNCS as an authorized cerson under the cedns and condita.ons pursuant to Article VI of the Agreenent for Cooperation between the Government of the United States of America and Government of Japan concerning Civil Uses of Atomic Energy which entered into force on July 10, 1968, amended by the Protocol on December 21, 1973. Fuel for the Experimental Fast Breeder Reactor "Joyo" of PNC: 75,516 kg2 of U-235 (12.18 7. maximum enrichment) contained in 620 kgs of uranium Further, it is confirmed that the transfer of the special nuclear mate-rial identified above will take place under all the. terms and conditions of the Agreement for Cooperation between our Governments, and that the appointee (s) named above have been authoriced to rechive and possess the material by both Governments. Also, the Government of Japan confir=s that the safeguards and guaran-tees of the Agreement for Cooperation will always apply to this special nuclear caterial, except for that material subsequently retransferred with the written approval of the United States. Sincerely yours, e a n. A Masayasu } aba,ashi First Secretary (Scientific) Ref: This is in reference to the case nu=ber of ISNM-1510 stated in your letter dated May 29, 1979. The inter =ediate consignee, Su=itemo Metal and Mining Co., Ltd. is also authoriced to receive and possess the material. 4

APPENDIX C -s t 1221 360 'N -h ,%g__}}