ITC keeps duties on French enriched uranium

By Frank Lewis

November 15, 2013

Frank Lewis

PDT Staff Writer

USEC Inc. learned Thursday that the United States International Trade Commission (ITC) voted 3-1 to leave in place duties on French low enriched uranium. The duties were first established in 2002 and renewed in 2007 following a comprehensive investigation by the U.S. Commerce Department and the ITC.

“The 3 to 1 vote by the U.S. International Trade Commission ensures that the U.S. Commerce Department’s order imposing duties on French low enriched uranium to offset dumping, by selling at less than fair value, in the U.S. market to the detriment of America’s uranium enrichment industry remains in place for at least five more years,” Jeffrey Donald of USEC, Inc. told the Daily Times. “We are very pleased that the ITC affirmed the order since renewed dumping would threaten USEC’s ability to secure sales to support commercial deployment of the American Centrifuge Plant.”

The duties were imposed under a procedure permitted by the General Agreement on Tariffs and Trade and the World Trade Organization.

John Donelson, Vice President of Marketing, Sales and Power for USEC, Inc. testified before the International Trade Commission on Sept. 10, urging them to keep the duties in place.

“If the order were revoked, I fully expect that Areva would attempt to sell even greater amounts of LEU in the U.S. market, particularly their own, French produced and unfairly traded LEU. Areva would do so by signing long-term contracts with U.S. utilities. The loss of these long term sales would be devastating for USEC. I can’t replace sales taken by Areva with other sales,” Donelson said. “The U.S. customer base is fixed and even declining in the intermediate term. This is revenue lost to me for a number of years. These lost sales would have a decisive negative effect on our company as we transition to commercial deployment of the ACP (American Centrifuge Project). I am going to be as clear as I can be here - my job is to sell the future output of the ACP. If I can’t do this because Areva is selling dumped LEU and taking sales I should be able to get, there will be nothing to sell because there will be no ACP plant for us to produce LEU. It is that stark.”

Frank Lewis may be reached at 740-353-3101, ext. 252, or at flewis@civitasmedia.com. For breaking news, follow Frank on Twitter @FrankLewisPDT.