Usec and KHNP sign fuel supply contract

Usec announced on 24 October that it had signed a contract worth some $400 million with Korea Hydro & Nuclear Power (KHNP) for the supply of enriched uranium for KHNP's nuclear power reactors. The new contract runs until 2013 and covers new deliveries of enriched uranium as well as improved terms on existing commitments. KHNP operates all 20 of South Korea's nuclear power reactors, which together provide some 40% of the country's electricity. Usec has supplied enriched uranium to South Korea for a number of years. In 2000, South Korea awarded Usec an extended nuclear fuel enrichment supply contract in a deal worth about $150 million. The agreement extended Usec's existing supply contract for an additional three years, from 2007 to 2009. Kepco also agreed to additional enrichment purchases between 2004 and 2007.