Government withholds funds of indigenous Uranium supply project

[Naveed Yaseen]

MUSHTAQ GHUMMAN
ISLAMABAD (December 19 2008): The federal government has withheld funds for a project to be executed by Pakistan Atomic Energy Commission (PAEC) for supplying indigenous uranium for the commissioned and planned nuclear power plants.

Official documents made available to Business Recorder reveal that the project 'new mineral survey scheme' was considered by the Executive Committee of the National Economic Council (Ecnec) in its previous meeting (December 2008) wherein top bass of PAEC was questioned for demanding 'unjustifiable' funds for the project.

The documents further reveal that the project had been discussed in the pre-CDWP meeting on April 25, 2008 wherein all queries were addressed and PAEC agreed to utilise existing facilities for the repair and maintenance of heavy equipment instead of setting up a separate mechanical workshop and deleted the expenditure proposed for the regular employees as these would be met from the regular budget of PAEC.

Despite several clarifications given by PAEC management to the concerned quarters, the government believes that the project cost was still 'unjustifiable'. "PAEC may initiate activities from its own resources and the government would release the funds from the PSDP when financial situation would ease," the documents suggested.

The PC-II of the project proposes carrying out mineral survey for delineation of nuclear mineral resource of Pakistan (Phase-VI). The main objective of the project is to establish additional Reasonable Assured Reserves (RAR) of uranium and other nuclear minerals to meet the nuclear fuel requirement to generate 8800 MW electricity by 2030.

The geo-scientific activities in the 20 geological formations bearing uranium deposits would include regional geological surveys such as air borne, ground radiometric, geochemical, geophysical and remote sensing techniques.

Based on the outcome of these preliminary surveys, exploration activities at targeted and identified sites would be conducted involving detailed geological mapping, drilling and test mining operations leading to collection of representative samples, determination of their mineralogical and chemical composition and subjecting the bulk samples to bench and pilot plant scale tests to establish their techno-economic parameters.

The field and laboratory data so generated would be documented and analysed to categorise uranium deposits in various categories including RAR. This task involves multidiscipline and multiphase activities requiring additional equipment and manpower.

The budgeted estimated cost of the project was Rs 1085.392 million with FEC of Rs 486.018 million. The duration of the project was five years (2008-2013). According to documents, PAEC is of the view that the successful completion of the project would ensure uninterrupted supply of indigenous uranium for the ongoing and planned nuclear power plants in the country.

At present dependence on fossil fuel is 44.1 percent gas and 20.2 percent oil for power generation. The fossil fuel is depleting fast besides its price in international market is very vulnerable. Therefore, it is imperative to diversify the fuel mix in power generation. Accordingly the Energy Security Action Plan (ESAP) envisages increasing the share of nuclear power from 1 percent to 4.2 percent by installing 8800 MW nuclear power plants by 2030.

Pakistan Environmental Protection Agency (Pepa), Islamabad has issued NoC with the observations that the subject activity may not require environmental approval at this stage.

The nuclear mineral survey schemes were started in 1962 and since then have developed physical and human infrastructure and delivered ensured supply of uranium and other raw materials for the operation of nuclear power plants. PAEC is the only geo-scientific organisation in the country that has developed nuclear project from discovery to metal stage.

PAEC Lahore has been undertaking nuclear mineral surveys since 1962 and has completed Phase-I to IV. Further Phase-V of NMSS estimated to cost Rs 737.6 million (FEC Rs 353.10 million) has been completed in June 2008. Substantial investment of Rs 1333.3 million (FEC Rs 564.3 million) has been made under various schemes and in turn generated physical and human infrastructure responsible for the discovery of 930 prospective sites, demarcation of 236 sites for detailed exploration while 6 sites have been and/or are being exploited.

http://www.brecorder.com/index.php?id=854015