Provisional measure paves the way for partnerships between INB and private-sector companies for ore production

12/14/2022

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With the approval by the Senate of the provisional measure 1,133/2022, which allows private-sector investment in nuclear ore extraction in Brazil, the sector sees the possibility of new companies joining an activity previously exclusive to Indústrias Nucleares do Brasil (INB).

Companies in the industry believe that the measure will make the activity more dynamic and provide greater legal security not only for the electric sector but also for other fields, such as health and environment.

Brazil has the sixth-largest uranium reserve on the planet and is one of the few countries in the world to master enrichment technology for peaceful purposes, but it manages to mine only 40% of what is needed for Angra 1 (640 MW). The remainder comes mainly from Kazakhstan and Uzbekistan through the Russian state-owned company Rosatom, which operates in these countries.

The Brazilian Association for the Development of Nuclear Activities (Abdan) understands that this is an opportunity for more intense uranium exploration and to make the country self-sufficient and the chance for new companies to land in Brazil since, without a guaranteed regulation, it would be difficult for the private sector to invest in the industry.

Celso Cunha — Foto: Luciana Whitaker/Valor

Abdan’s head Celso Cunha told Valor that the arrival of private-sector companies in the extraction of nuclear ores does not mean a breach of the federal government’s monopoly, but changes in the law that give more clarity to possible companies and investors.

He recalls that a public-private partnership (PPP) already exists. The Santa Quitéria consortium is a partnership between INB and Galvani – a company that produces phosphate fertilizers – for the implementation of a joint mining project. The objective is to exploit uranium and phosphate found in an associated form in the Itataia ore deposits in Santa Quitéria, Ceará. The current law determines that less than 50% must be uranium, but now the provisional measure does not establish quotas and uranium exploration can increase.

“But only INB can sell and use uranium. It is not the state’s job to dig a hole. Extracting uranium from great depth requires technical knowledge we don’t have in Brazil. The solution is to make public-private partnerships, bring Brazilian and foreign companies together and take it to INB,” he said.

Today the pillar of expansion of the Brazilian electricity sector is wind and solar sources. These sources are intermittent because they depend on the wind and the sunlight. This instability creates a challenge for Brazil’s national grid operator ONS, which organizes the mix of sources to meet the demand in real-time, which also varies. According to Mr. Cunha, nuclear generation is important because it is commanded by people, not the sun, wind, or rain.

“To produce for Angra 1, 2, and 3 we need the Santa Quitéria mine, in Ceará. Then we will be able to supply the market. We won’t need to import uranium,” he said.

A target of worldwide controversy for almost 70 years, when U.S. President Eisenhower proposed, in a speech to the United Nations, the atomic program for peace, nuclear energy is now back on the international agenda, going from villain to climate hero. Amid the urgency of combating global warming and the ever-shortening window for action, atomic energy already fits the definition of green energy. On the other hand, Russia’s war against Ukraine may make uranium imports more expensive, as European nations seek to reduce their dependence on Russian gas.

Brazil is not out of this context. The National Energy Plan-2050 signaled eight to 10 new nuclear plants, and the Ten-Year Energy Expansion Plan (PDE) 2031 foresees another 1 GW in the Southeast region. The works of Angra 3 have resumed and besides guaranteeing the fuel, the executive says that Brazil needs to define the energy tariff to approve the financing if it wants to maintain the plant’s completion schedule until 2027.

The financing is divided into a R$4 billion tranche that is already underway and R$17 billion BNDES is expected to raise in the international market. Eletronuclear will hold the auctions.

There is talk of a fourth nuclear plant in the Southeast region in the next 10 years. If the plant gets off the drawing board, the forecast is that it will have 1 gigawatt of installed capacity. There is no decision on where the site will be, but chances are it will be in the region of Angra dos Reis, Rio de Janeiro.

Abdan is advising the new administration’s energy transition committee, besides being ahead of important agendas for the next year, involving new plants in Angra and small modular reactors. According to him, the priorities for the government’s 100 first days in office range from unlocking funds to make research feasible, to providing legal security for the mining and commercialization of nuclear ores and their by-products, in addition to the challenge of speeding up the operation of the National Nuclear Safety Authority, which currently does not have a president.

*By Robson Rodrigues — São Paulo

https://valorinternational.globo.com/