1. 1 2010 NMMSS Users and Training Meeting Australia’s system of tracking obligated nuclear material Dr. Stephan Bayer Director, Nuclear Accountancy and Control Section Australian Safeguards and Non-Proliferation Office Las Vegas 19 May 2010

2. 2Outline Functions of ASNO Australian uranium export policy Nuclear Cooperation Agreements Tracking obligated nuclear material – NMMSS and NUMBAT Reconciliation Inventory Reports Looking ahead

3. ASNO’s Operating Environment 3

4. 4 ASNO Structure Assistant Secretary John Kalish

5. Nuclear Accountancy and Control Section Domestic Safeguards – Facilitate IAEA inspections – Additional Protocol – Domestic Safeguards Inspections – IAEA reporting Bilateral Safeguards – Australian uranium export policy – Nuclear Cooperation Agreements (“123” agreements) – Administrative Arrangements – Accounting for AONM and FONM Nuclear Security (Physical Protection) – Implementation and inspections: INFCIRC/225/Rev.4 – Development of standards (Nuclear Security Series) – Nuclear Security Summit 5

6. Australian Fuel Cycle Uranium mines – Ranger, Olympic Dam, Beverley – Honeymoon, 4-mile – Toro, Yeelerrie, many more… OPAL Research Reactor – Production of Radiopharmaceuticals – Neutron beam research SYNROC waste-forms – Developed by ANSTO Research Enrichment – SILEX technology now sold to GLE-Hitachi – No further activities involving nuclear material R&D, Universities and Radiographers – radiography cameras 6

7. 7 Countries for which Australian Uranium is supplied Country%Total USA45.3 Japan23.6 France10.5 ROK4.0 Sweden3.5 China3.2 Canada2.7 Taiwan2.5 UK1.8 Spain1.1 Finland1.0 Germany0.8

8. Nuclear Non-Proliferation (Safeguards) Act 1987 Australia’s obligations under Nuclear Non-Proliferation Treaty (NPT) Safeguards Agreement and Additional Protocol with the IAEA Convention on the Physical Protection of Nuclear Material (CPPNM) Bilateral nuclear cooperation and transfer agreements 8

9. 9 Australian Export Policy Derived from Fox Report of 1977 –Bi-partisan support –Uranium to be exported to countries only under bilateral safeguards arrangements Supply only to NPT countries that have an Additional Protocol In Force Australia does not have equivalent act (section 123) to USA Atomic Energy Act specifying minimum requirements for nuclear cooperation agreement

10. 10 Australian Export Policy Australia’s basic policy requirements, set out through the bilateral safeguards agreements, are that: –IAEA safeguards to apply or fallback safeguards should NPT or IAEA safeguards cease; –AONM is used only for peaceful purposes and in no way enhances or contributes to any military purpose; –Prior consent for retransfers, reprocessing, and enrichment to 20% or more; –AONM is properly accounted for as it moves through the nuclear fuel cycle. Procedures set out in administrative arrangements; –Adequate levels physical protection applied to AONM

11. 11 Network of Australia’s Bilateral Safeguards Agreements CountryEntry into ForceCountryEntry into Force Republic of Korea02/05/1979Switzerland27/07/1988 United Kingdom24/07/1979Egypt02/06/1989 Finland09/02/1980Russia24/12/1990 United States16/01/1981Mexico17/07/1992 Canada09/031981New Zealand01/05/2000 Sweden22/05/1981United States (Silex)24/05/2000 France12/09/1981Czech Republic17/052002 Euratom15/01/1982 United States (covering Taiwan) 17/05/2002 Philippines11/05/1982Hungary15/06/2002 Japan17/08/1982Argentina12/01/2005 People’s Republic of China03/02/2007

12. 12 Tracking Obligated Nuclear Material Peaceful uses Consents Requirement to establish Administrative Arrangements Nuclear Cooperation Agreements Equivalence/Proportionality Notifications and Reports Administrative Arrangements Retransfers Annual Inventory Reports Notifications/Reports Visits to counterparts Transit matching Audit of notifications and reports Reconciliation Totals of AONM worldwide Transfers of AONM between jurisdictions AONM adequately accounted for Report to Parliament and counterparts

13. NUMBAT (Nuclear Material Balances and Tracking) 13

14. NUMBAT 14 Nuclear MAterial Balances And Tracking  NUMBAT v1: GW Basic  NUMBAT v2: Foxpro  NUMBAT v3: MS Access (now 2007) NUMBAT Includes: Register of permit holders and inspection reports IAEA accounting (ICR, PIL etc) Tracking AONM (not FONM) Access by ASNO staff only. No access by industry. Funding to migrate database to.NET front-end and SQL back-end. Hope to have on-line access for uranium mines to submit export data.

15. 15NUMBAT

16. 16 NMMSS and other Reports received by Australia Monthly Spreadsheet of transfers (aka “Monthly diskettes”) Imports/Exports of AONM into/out of USA Direct Import/Exports + retransfers Supplied from NNSA to ASNO Approx 500 lines of data per month Received 3-9 months after month-end Import into custom database before importing into Numbat Export data basis for on-notifications to counterparts (eg EURATOM, Japan, ROK)

17. 17 NMMSS and other Reports received by Australia (2) Ad hoc: Exports to Japan and ROK (scanned Form 741s) –Special requirement since Japan requires strict prior notice of retransfers –Hard to read –Lots of manual entry –Really nice to receive in spreadsheet form End-user confirmations (NNSA, DOS)

18. 18 NMMSS and other reports received by Australia (3) Annual - Inventory Balance of AONM in USA LEU (g)HEU (g)PU (g)NU (kg)DU (kg)U-233 (g)TH (kg) ElementIsotopeElementIsotopeElement IsotopeElement Beginning Inventory 2,943,871,30157,114,67433,61322,66725,220,2856,299,83744,923,35300 Direct Imports2,111,847 Indirect Imports234,612,22310,579,374368,893 International Obligation Exchanges 100,006 Category Changes192,137,2738,417,3421,741,977 Nuclear Production/ On-site Increases 2,880,5691,95664,426 Increases Subtotal426,749,49618,996,7162,880,5692,582,7021,806,403 Direct Exports Retransfers96,965,8684,279,8311,888,473 International Obligation Exchanges Category Changes1,941,926 Nuclear Loss/ On-site Decreases/ 71,835,86910,678,156279,839 423,6793,151 Decreases Subtotal168,801,73714,957,987279,8394,254,0783,151 Ending Inventory3,201,819,06061,153,40333,61322,66727,821,0154,628,46146,726,60500

19. 19 Facility/Agency Interaction – (A) Uranium mine Honeywell URENCO ASNO NNSA EURATOM NUMBAT NMMSS UOC Export Form 110 YC Notif Monthly spreadsheet +Form 741s Retransfer AUUSEUxx ITC Receipt Natural UOC Natural UF6 Form 741

20. 20 Facility/Agency Interaction (B) Uranium mine Honeywell URENCO ASNO NNSA EURATOM NUMBAT NMMSS UOC Export Form 110 YC Notif Monthly spreadsheet +Form 741s Retransfer AUUSEUxx ITC Receipt Natural UOC Natural UF6 Form 741

21. Common AONM transfers between USA and other countries ConvertersEnrichmentFuel FabricationReactorStorage Direct Import ASD ASL ASP YSPASADZA Indirect Import DAYBYC UDL/UEH NAY/NED GSC FAA/FBQ WAE YLM YLJ YUD Retransfers YSP UDL NED GSC FAA BYC SYC Japan ROK YSP YLJ YUD Japan ROK EU YXX Jap 21

22. 22

23. 23 Reporting under Safeguards Act Section 51 – Nuclear Non-Proliferation (Safeguards) Act 1987 (1) The Director shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister [Table in Parliament] a report in relation to the operations of the Director during that year. (2) A report shall include the following information in respect of the period to which the report relates: (a) for all nuclear material and associated items of Australian origin transferred from Australia to any foreign jurisdiction or between foreign jurisdictions: (i) the total quantities in each stage of the nuclear fuel cycle; and (ii) the intended end-use; of the nuclear material and the items transferred to each jurisdiction; (b) the quantities, categories and intended end-use of all nuclear material and associated items within Australia; and (c) any unreconciled differences in quantities of: (i) nuclear material of Australian origin, wherever situated; or (ii) nuclear material within Australia, regardless of origin; and an explanation of those differences.

24. 24 Conclusions are derived from….. Reports from each bilateral partner Shipping and transfer documentation (Transit matching) Calculations of nuclear production and consumption Examination of shipper/receiver differences Knowledge of fuel cycle in each country Regular reconciliation and bilateral visits Liaison with counterpart organisations and industry IAEA conclusions on each country  Report to parliament  AONM is “satisfactorily account for”  Summary report of AONM inventories and transfers  Note any issues with information/reports

25. 25 Worldwide total of AONM at 31 Dec 2008 CategoryLocationTonnes Depleted UraniumEuropean Union, Japan, Republic of Korea, United States93 618 Natural UraniumCanada, European Union, Japan, Republic of Korea, United States21 979 Uranium in Enrichment Plants European Union, Japan, United States19 976 Low Enriched Uranium Canada, European Union, Japan, Mexico, Republic of Korea, Switzerland, United States 12 872 Irradiated Plutonium Canada, European Union, Japan, Mexico, Republic of Korea, Switzerland, United States 120 Separated PlutoniumEuropean Union, Japan1.4 TOTAL148 566

26. 26 Transfers of AONM between jurisdictions in 2008 Fuel cycle StageDestination U (tonnes) To Conversion Canada877 China266 European Union2 702 United States4 754 To Enrichment European Union1 944 United States522 To Fuel Fabrication Japan117 Republic of Korea116 United States319 European Union12 To ReactorsUnited States0.2

27. 27 NMMSS – the good Only system reporting providing transfers reports electronically –All other transfers reports from other countries received as hard-copy System of RIS codes –Codes remain despite company name changes

28. 28Issues Transit Matching –Different batch numbers Heels –Inconsistent declarations between EU and YSP,YLM,YUD,YLJ Balances in enrichment plants –Product, Feed, Tails throughput and plant inventory need to balance Reporting Formats –4 different report formats from NMMSS since 2002 Varying requirements from NCAs –e.g. Japan requires strict prior notice (scanned Form 741s) Delays in reporting –USA monthly spreadsheets and Canada Form 59s –Receive notification of receipt before notification of dispatch Uranium extracted from mineral ores and concentrates –How to track?

29. 29 Looking ahead Global Laser Enrichment –Australia/US obligated technology –Australia/US SILEX agreement specifies uranium used in plant using SILEX technology is subject to Australia/US 123 agreement  obligation by contamination –AONM will increase faster than supply of new Australian UOC New players in international fuel cycle –China, Russia, India, UAE, Africa, SE Asia….more? –More obligations to track –International Fuel Centres, Fuel Banks Universalising obligation accounting –Outreach to new players –“Quad” group (USA, Canada, Euratom, Australia) –Standard reporting formats?

30. 30 Thank-you Questions?

31. 31 AONM Trivia  No AONM has been enriched beyond 5%  >85% of AO Enriched Uranium is Spent Fuel  60% of AONM is DU  USA holds 55% of AONM worldwide UOC Exports between June ’08 - June ’0910,114 tonnes Australian exports as % world uranium requirements ~13% No. of 1000 MWe rectors powered by these exports ~49 % of total Australian electricity production125%