Identifier
Created
Classification
Origin
09AMMAN2290
2009-10-14 08:04:00
CONFIDENTIAL//NOFORN
Embassy Amman
Cable title:  

JORDAN PRODUCES YELLOWCAKE AND SEEKS COOPERATION

Tags:  ENRG ECON EMIN TRGY KNNP PARM JO 
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FM AMEMBASSY AMMAN
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INFO RUEHAD/AMEMBASSY ABU DHABI 1345
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RUEHLB/AMEMBASSY BEIRUT 3109
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RUEHEG/AMEMBASSY CAIRO 4156
RUEHBY/AMEMBASSY CANBERRA 0120
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RUEHJI/AMCONSUL JEDDAH 0914
RUEHJM/AMCONSUL JERUSALEM 5669
RUEKJCS/SECDEF WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHUNV/USMISSION UNVIE VIENNA 0062
C O N F I D E N T I A L AMMAN 002290 

NOFORN
SIPDIS

STATE FOR NEA/ELA, ISN/NESS, ISN/RA

E.O. 12958: DECL: 10/13/2014
TAGS: ENRG ECON EMIN TRGY KNNP PARM JO
SUBJECT: JORDAN PRODUCES YELLOWCAKE AND SEEKS COOPERATION
AGREEMENT AS NUCLEAR ENERGY PLANS PROGRESS

REF: A. AMMAN 2233

B. AMMAN 1690

C. AMMAN 1570

D. AMMAN 1489

E. AMMAN 1480

F. AMMAN 1394

G. AMMAN 1356

H. AMMAN 1319

I. AMMAN 825

Classified By: Ambassador R. Stephen Beecroft for Reasons 1.4 (b) and (
d)

C O N F I D E N T I A L AMMAN 002290

NOFORN
SIPDIS

STATE FOR NEA/ELA, ISN/NESS, ISN/RA

E.O. 12958: DECL: 10/13/2014
TAGS: ENRG ECON EMIN TRGY KNNP PARM JO
SUBJECT: JORDAN PRODUCES YELLOWCAKE AND SEEKS COOPERATION
AGREEMENT AS NUCLEAR ENERGY PLANS PROGRESS

REF: A. AMMAN 2233

B. AMMAN 1690

C. AMMAN 1570

D. AMMAN 1489

E. AMMAN 1480

F. AMMAN 1394

G. AMMAN 1356

H. AMMAN 1319

I. AMMAN 825

Classified By: Ambassador R. Stephen Beecroft for Reasons 1.4 (b) and (
d)


1. (C) Summary: Jordan's Atomic Energy Commission (JAEC) is
keen on reaching a nuclear cooperation agreement with the
United States even as it continues to sign similar agreements
with other countries, most recently Argentina on September

22. JAEC also has had discussions with regional actors
Egypt, Kuwait, Lebanon, and Saudi Arabia and claims that they
share Jordan's view that the UAE model should not be applied
to the other Arab states pursuing nuclear energy programs.
Jordan also reaffirmed its support for strengthening the
Non-Proliferation Treaty (NPT) if applied universally, and
for a Nuclear Weapons Free Zone in the Middle East. The JAEC
is moving forward with its energy program and expects to
award a contract in the next few weeks for an energy
consultant to conduct a technical study. In related
developments, the Jordan Phosphate Mines Company has
successfully produced yellowcake from phosphate, but does not
view yellowcake production as economically feasible, will not
trade it, but will sell it to JAEC (which views yellowcake
production as commercially viable) at cost, plus. With the
aim to move a nuclear cooperation agreement forward, JAEC and
post would welcome the visit of a high-level delegation to
Jordan. End summary.

Keen on Reaching 1-2-3 Agreement
--------------


2. (C) The Jordan Atomic Energy Commission (JAEC) continues
to proceed with its nuclear energy plans, having signed a
nuclear cooperation agreement with Argentina on September 22
during UN General Assembly meetings, and expecting to sign
similar agreements with the Czech Republic and Spain in the

near future. Khaled Toukan, JAEC Chairman, told EconOff on
October 7 that Jordan was still keen on concluding an
agreement with the U.S., while holding to his oft-repeated
view that a nuclear cooperation agreement must preserve
"Jordanian rights" to pursue uranium enrichment in the future
(refs C, D, and G). Toukan asserted that Jordan was willing
to fully cooperate with the U.S., IAEA, and others in
ensuring transparency for its entire nuclear program,
pointing to Jordan's NPT and IAEA additional protocol status.
He stressed that Jordan ultimately wants U.S. companies such
as G.E. and Westinghouse involved in the construction of
Jordanian nuclear energy plants and said, "we are ready" to
reach an agreement.

Building Support Against the UAE Model
--------------


3. (C) Toukan expounded on his view, telling EconOff that the
UAE model should not be the basis of a U.S.-Jordan agreement.
He noted that the UAE, even after accepting the strict
measures in its cooperation agreement, still faced opposition
in Congress to its nuclear program. Toukan said that such
opposition stemmed from some in the U.S. not wanting Arab
countries to have their own nuclear energy resources at all.


He further cited discussions he claims to have had with his
counterparts in Egypt, Kuwait, Lebanon, and Saudi Arabia and
that none of those countries found the UAE model acceptable.
Toukan said that he checked with the IAEA and that it
supported JAEC's views on U.S. conditions on the 1-2-3 with
Jordan. Despite sharing his hard-line views, he stressed his
"keen" desire to come to an agreement with the U.S.


4. (C) The JAEC leadership, Toukan and Vice Chairman Kamal
Araj, also provided a read-out on discussions they had in
Vienna regarding strengthening the NPT, saying that Jordan
supported the initiative, providing the caveat that it should
be based on the universality of the NPT. Jordan also
supports calls for nuclear disarmament, said Toukan, noting
Jordan's support for a Nuclear Weapons Free Zone for the
Middle East.

Next Step: Technical Study Contract
--------------


5. (C) Jordan's next step for its nuclear energy program is
to award a contract to an energy consultant to conduct a
technical site study that would examine all technical and
financial requirements for nuclear energy production in
Jordan. The technical site study contract is the second
contract related to advancing Jordan's nuclear energy
project. The first contract for conducting a site selection
and characterization study was awarded in late September to
Belgium-based Tractebel and work is scheduled to begin by
mid-October. Toukan told EconOff that three companies were
short-listed for the technical study contract: (1) Tractebel
of Belgium, (2) U.S.-based Parsons Brinckerhoff and (3)
WorleyParsons of Australia. JAEC expects to announce the
contract award within the next several weeks. The JAEC is
also seeks to increase its cooperation with the U.S.
Department of Energy (DOE) and is looking to implement its
cooperative agreements with DOE. JAEC will investigate
possible cooperative programs with the Idaho National
Laboratory and Pacific Northwest National Laboratory and
would welcome discussions with DOE counterparts in China
during the upcoming Global Nuclear Energy Partnership
Executive Committee meeting to be held in late October.

Phosphate Mines Co. Produces Yellowcake
--------------


6. (C) In marking its signing of a $625 million contract with
India's Indian Farmers Fertilizers Cooperative to build a new
phosphoric acid plant near Ma'an, the Jordan Phosphate Mines
Company (JPMC) produced an experimental sample of uranium
yellowcake produced by its laboratories as a gift to King
Abdullah. JPMC Chairman and CEO Walid Kurdi told EconOff
that JPMC labs extracted the uranium from phosphate rock
during its processing with sulfur to produce phosphoric acid.
Kurdi said the sample produced was a "few grams"
(demonstrating by balancing on a small spoon a few granules
of sugar served with tea) that were inactive and not actually
shown to the King for fear of radiation. Kurdi said that
JPMC feasibility studies were "not complimentary" for
extracting uranium from phosphate because of market prices.
He insisted that JPMC was not interested in extracting
uranium and producing yellowcake because it was not
economically feasible for his company. He would rather
invest the time, effort, and resources in addressing his
company's logistics problems--getting phosphate products to
the port in Aqaba (septel).


7. (C) Further, Kurdi asserted that JPMC will not deal with

trading in yellowcake. JPMC will produce yellowcake at cost,
plus, for JAEC. Kurdi said that, contrary to his view, JAEC
believes yellowcake will be viable as a commercial product,
meaning that significant quantities could be produced for
Jordan's nuclear energy needs, while noting that a 1,000 MW
reactor would require 100-120 tons of yellowcake for its
operations. JAEC's Toukan told EconOff that he viewed
yellowcake as a commercially viable option for JAEC to pursue
given its future nuclear fuel needs, downplaying whether
having JPMC produce it was economically feasible.

Comment
--------------


8. (C) The JAEC continues to welcome the visit of a
high-level U.S. delegation to pursue concluding a 1-2-3
agreement, and post would also welcome and encourage such a
visit. If Jordan's assertion that Egypt, Kuwait, Lebanon,
and Saudi Arabia are converging around a common position
rejecting the UAE model is accurate, then U.S. efforts at
pursuing individual nuclear cooperation agreements that
include many of the safeguards included in the UAE agreement
could be negatively impacted. End comment.


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Beecroft