USEC and TENEX began working together in 1993 under the Megatons to Megawatts program, and the new contract will provide USEC with continued access to Russian enriched uranium.

Under the new contract, the supply of LEU to USEC will begin in 2013 and ramp up until it reaches a level in 2015 that is about one-half the level currently supplied by TENEX to USEC under the Megatons to Megawatts program with the mutual option to increase the quantities up to the same level as that program.

Unlike the Megatons to Megawatts program, the quantities supplied under the new contract will come from Russia’s commercial enrichment activities rather than from downblending of excess Russian weapons material.

Under the quantitative limitations on imports of Russian enriched uranium in the US through 2020, USEC will deliver a portion of the enriched uranium to US utilities with most of the enriched uranium to be delivered to USEC’s customers outside of the US in both existing and emerging markets.

The new contract does not affect USEC’s domestic production of enriched uranium or its highest priority objective to deploy the American Centrifuge technology, the company said.

Deliveries under the contract are expected to continue through 2022, and USEC will purchase the separative work units contained in the LEU and deliver natural uranium to TENEX for the LEU’s uranium component.

The new contract is subject to approval of the Russian State Corporation for Atomic Energy and completion of administrative arrangements between the US and Russian governments under the agreement for cooperation in nuclear energy between the US and Russia.