ML20045E408

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Summary of Closed Meeting February 4 2020 to Discuss Restructuring of Gle Due to Purchase by Silex and Cameco
ML20045E408
Person / Time
Site: 07007016
Issue date: 02/24/2020
From: Matt Bartlett
NRC/NMSS/DFM/FFLB
To: Jacob Zimmerman
NRC/NMSS/DFM/FFLB
MABartlett NMSS/DFM/FFL 415.7154
Shared Package
ML20045E407 List:
References
Download: ML20045E408 (3)


Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 February 24, 2020 MEMORANDUM TO: Jacob I. Zimmerman, Chief Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards FROM: Matthew Bartlett, Project Manager /RA/

Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards

SUBJECT:

SUMMARY

FOR CLOSED MEETINGS HELD ON FEBRUARY 4, 2020, TO DISCUSS THE PROPOSED RESTRUCTURING OF GLOBAL LASER ENRICHMENT DUE TO PURCHASE BY SILEX SYSTEMS LTD AND CAMECO CORPORATION On February 4, 2020, the U.S. Nuclear Regulatory Commission (NRC) staff held a closed public meeting with representatives from Global Laser Enrichment (GLE), SILEX Systems Ltd.

(SILEX), Cameco Corporation (Cameco), and General Electric Hitachi (GEH). The SILEX representatives provided a proprietary slide presentation describing the restructuring plans for GLE based on new ownership. The restructuring package is planned for submittal to the NRC in February 2020. It will contain a license termination for Special Nuclear Material License (SNM)-2019, and a facility clearance request package for the new GLE. The facility clearance package will include a standard practice procedure plan (SPPP); a foreign ownership, control, or influence mitigation plan; and a company security agreement (special security agreement unique to GLE).

The SILEX representatives requested the GLE restructuring to be approved by November 2020.

The NRC staff have the technical reviewers and resources in place to proceed with a formal review once GLE submits the package. The staff estimates the review can be completed within 220 calendar days of submittal, subject to receiving a high-quality application and quality responses to any requests for additional information. The NRC staff recognizes that the facility clearance request will have many unique factors, including 100 percent foreign ownership of the new GLE, the absence of an NRC license, and the existence of a 123 Agreement between the U.S. and Australian governments specific to sharing SILEX technology. As a result, the NRC staff anticipates seeking technical input from the Defense Counter Intelligence and Security Agency to support the review of the foreign ownership, control or influence mitigation plan.

CONTACT: Matthew Bartlett, NMSS/DFM 301-415-7154

J. Zimmerman 2 The NRC staff confirmed that a facility clearance can be issued under Title 10 Code of Federal Regulations, Part 95 to the new GLE, even if they are not a licensee. In addition, the NRC staff will seek a written commitment from GLE to operate consistent with the new facility clearance and SPPP, to ensure the commitments are inspectable. The SILEX and GLE representatives were receptive to this proposal.

The GLE staff stated the test loop would continue to operate, without significant changes, under the Global Nuclear Fuels - America License SNM-1097. GLE would continue to operate as a GNF-A contractor subject to all the safety, security, and environmental requirements in the SNM-1097 license. The parties indicated that the contract with the U.S. Department of Energy for purchase of uranium hexafluoride tails (uranium depleted in Uranium 235) includes milestone requirements to submit a license application for an enrichment facility to be built near the former Paducah gaseous diffusion plant located near Paducah, Kentucky. The NRC staff requested GLE to provide a letter of intent at least 2 years in advance of submittal of such an application, to support NRC budgeting. The NRC staff noted that a license application for an enrichment facility would require a mandatory hearing.

To resolve issues in a timely manner, the NRC management expressed support for additional interactions as the review progresses.

Enclosures:

1. Attendees List
2. GLE Slides cc: gle@listmgr.nrc.gov

J. Zimmerman 3

SUBJECT:

SUMMARY

FOR CLOSED MEETINGS HELD ON FEBRUARY 4, 2020, TO DISCUSS THE PROPOSED RESTRUCTURING OF GLOBAL LASER ENRICHMENT DUE TO PURCHASE BY SILEX SYSTEMS LTD AND CAMECO CORPORATION DATED: February 24, 2020 DISTRIBUTION:

DFM r/f KEverly, NSIR M Ruffin, RII Pitts, RII ADAMS Accession Nos: ML20045E407 (Pkg) ML20045E408 (Memo)

ML20045E410 (Encl. 1) ML20045E411 (Encl. 2, non-public)

OFFICE FCSE/FFLB FCSE/FFLB FCSE/FFLB NAME MBartlett ELee JIZimmerman DATE 02/19/2020 02/19/2020 02/24/2020 OFFICIAL RECORD COP