The competitive enrichment market

With the enactment of the ''Private Ownership of Special Nuclear Materials Act'' in 1964, the U.S. Government made provisions to enter into the uranium enrichment services business. Since nuclear power was in its infancy and the Government was promoting its growth as well as trying to help U.S. industry sell reactors overseas, the initial contracts (Requirements Contracts) for enrichment services placed most of the risks associated with the supplying of the services on the Government. Projections of nuclear power additions continued to grow and in 1972 the Atomic Energy Commission (AEC) stopped contracting under Requirements Contracts in order to study which mode of contracting best suited the commercial development of the industry. In mid-1973, the AEC introduced the Long-Term Fixed Commitment (LTFC) contract which shifted the risk to the customer. By mid-1974, AEC had contracts which completely used the enrichment capacity of its complex and refused to accept requests for additional contracts. This action further convinced European nations that they should continue to develop their own enrichment capacity and resulted in the EURODIF and URENCO projects. Before this time the U.S. supplied 100% of the world market for enriching services