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THE IAEA LOW ENRICHED URANIUM BANK IN KAZAKHSTAN by Tariq Rauf ASTANA: 29 August 2017: On Tuesday afternoon, 29th August 2017, the International Atomic Energy Agency (IAEA) and Kazakhstan will formally inaugurate a Low Enriched Uranium (LEU) Bank located at the Ulba Metallurgical Plant at Öskemen (formerly Ust Kamenogorsk). This event will mark an important milestone in the long march for the IAEA set up an IAEA owned and operated nuclear fuel bank as envisaged in the 1957 IAEA Statute. This initiative was proposed in September 2006 by the Washington, DC-based Nuclear Threat Initiative (NTI) which offered US$50 million to the IAEA, provided by global investor Warren Buffet, to set up an IAEA LEU Bank by raising an additional $100 million. By early 2009, the IAEA had accomplished the goal of getting funding support from the European Union (€50 million), Kuwait ($10 million), Norway ($5 million), United Arab Emirates ($10 million) and the United States of America ($50 million). Kazakhstan was the only country to offer to host the IAEA LEU Bank on its territory and pledged nearly $500,000 for the project. Background: The Baruch Plan of 1946 eerily warned that “Behind the black portent of the new atomic age lies a hope, which seized upon with faith can work our salvation... Science has torn from nature a secret so vast in its potentialities that our minds cower from the terror it creates. Yet terror is not enough to inhibit the use of the atomic bomb. The terror created by weapons has never stopped man from employing them.” Baruch envisioned an internationalization of the nuclear fuel cycle that was ahead of its time. The original concept of “Atoms for Peace” in 1953 that called for the establishment of the IAEA also included the receipt, custody and supply of nuclear fuel as well as the acquisition and establishment of facilities, plants and equipment for the enrichment or fabrication of nuclear fuel as some of the principal functions of such an organization. These principles were included in the Statute of the Agency, but it was not until the 47th regular session of the IAEA General Conference in 2003 that serious thinking in the contemporary context was devoted to this matter. At the General Conference, IAEA Director General Mohamed ElBaradei elaborated a new approach to the sensitive elements of the nuclear fuel cycle – uranium enrichment and plutonium separation. ElBaradei called for a creation of a new framework for nuclear energy to assure supply of nuclear fuel for civilian uses while maintaining flexibility in nuclear fuel cycle choices and options for the Agency’s Member States. Between 2004 and 2008, some twelve different proposals were advanced including assurances of supply, multilateral enrichment centres and in international nuclear fuel cycle centres. Nuclear Threat Initiative Offer On the eve of the IAEA General Conference in September 2006, the Co-Chairs of the Washington-based Nuclear Threat Initiative (NTI), former US Senator Sam Nunn and Ted Turner, offered the IAEA $50 million to be provided to the IAEA by Warren .

Buffet to help create an IAEA owned and operated LEU Bank on the proviso that the IAEA raised $100 million for that purpose. Another major breakthrough came on 6 April 2009 when the President of Kazakhstan, Nursultan Nazarbayev, announced that Kazakhstan would provide a location to host the IAEA LEU Bank. This commitment was reconfirmed on 28 December 2009 through a letter from the Secretary of State and Minister of Foreign Affairs, Kanat Saudabayev. By the summer of 2009, the IAEA had received both funds and pledges in excess of $100 million, thus meeting the requirements of the NTI offer. Subsequently, on 3 December 2010, the IAEA Board of Governors approved the establishment by the IAEA of an LEU Bank. The IAEA Board also delegated the authority to the IAEA Director General to supply LEU from the Bank to any IAEA Member State, as a mechanism of last resort, which suffers a disruption of supply of LEU from the commercial market in nuclear fuel. To be able to receive LEU from the Bank, an IAEA Member State experiencing a supply disruption, would have to meet the following criteria that were approved by the Board in December 2010: (a) the supply of LEU to a nuclear power plant is disrupted; (b) the State is unable to procure LEU from the commercial market, State-to-State arrangements, or by other such arrangements; (c) the State has in force a comprehensive safeguards agreement with the IAEA and remains in compliance with this agreement; and (d) the State has concluded a supply agreement with the IAEA for the LEU and has paid in advance the full cost of the LEU to the IAEA. IAEA LEU Bank: The IAEA LEU Bank will hold some 90 tonnes of LEU that would be sufficient for one full core reload of a 1000 MW(e) nuclear power reactor, or three annual reloads for such a reactor. In order to meet this requirement, the LEU will be at three levels of enrichment, roughly 4.95%, 3.20% and 1.60%. This will enable the IAEA to supply LEU at an enrichment level suitable for use in light-water power reactors, which usually need LEU at an enrichment level between 2.5% and 3.5%. In accordance with standard nuclear industry practice, the LEU will be stored in 30B steel cylinders, which are 30 inches in diameter, have a capacity of about 62kg of uranium enriched to 4% (the 30B cylinder is certified to contain a maximum net weight of 2,277 kg UF6 (1,540 kg U). As LEU does not deteriorate it can be safely stored over the medium- to long-term. LEU is a white-grey waxy solid during storage and transport. LEU is not nuclear waste, and no waste generated by storing it. It does not have any adverse environmental impact when properly stored in certified 30B cylinders.