CURRENT STATE OF PLAY IN JORDAN'S NUCLEAR ENERGY

S E C R E T AMMAN 000825

NOFORN
SIPDIS

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

E.O. 12958: DECL: 04/06/2019
TAGS: ENRG KNNP ECON JO
SUBJECT: CURRENT STATE OF PLAY IN JORDAN'S NUCLEAR ENERGY
PROGRAM: AGREEMENTS GALORE, URANIUM EXPLORATION UNDERWAY,
MULTIPLE REACTORS UNDER CONSIDERATION

REF: A. AMMAN 583

B. 08 AMMAN 3011

C. 08 AMMAN 2994

D. 08 AMMAN 1138

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


1. (S/NF) Summary: The Jordan Atomic Energy Commission
(JAEC) continues to engage numerous foreign countries on the
development of Jordan's nuclear energy program. This
approach at times has created confusion, particularly in the
press, as to which deals have actually been finalized or are
merely under consideration. The Government of Jordan (GOJ)
has signed Memoranda of Understanding (MOUs) on nuclear
energy with the U.S., Canada, France, Korea, Russia, Romania,
and the UK, as well as Nuclear Cooperation Agreements (NCAs)
with Canada, China, France, and Korea. Uranium exploration
in Jordan has moved forward with the French company AREVA,
the British-Australian firm Rio Tinto, and the Chinese
company Sino Uranium. The GOJ plans to issue an RFP
imminently for an international consulting firm to help
develop the tender for a nuclear reactor. Entertaining the
possibility of building more than one reactor, JAEC has
explored potential technologies with various international
firms, including the French, Chinese, Koreans, U.S.,
Russians, and Canadians. Jordan plans to follow a
Public-Private Partnership ("PPP") model in which the owner
or operator would receive an equity share in the plant, as
well as the government. The GOJ issued an RFP for a research
reactor in January 2009 and is still receiving offers.
Despite a flurry of activity, there is little clarity on
which partners the GOJ hopes to seriously engage, raising
concerns within the diplomatic community about how well
thought out the GOJ's approach to developing nuclear energy
is. At the Ambassador's urging, the GOJ only recently
briefed Israel on its plans and to the best of Post,s
knowledge, has yet to engage Egypt. The Israeli ambassador
raised concerns about brine and seismic activity, and the two
sides agreed that their experts should soon meet. End
Summary.


MOUs and Nuclear Cooperation Agreements Galore
-------------- -


2. (U) During a DOE/NNSA Middle East Infrastructure
Preparedness Workshop in Amman from March 22-26, Ned Xoubi,
the JAEC Commissioner for Fuel Cycle and head of the Jordan
Energy Resources Inc., outlined the current status of
Jordan's nuclear energy program. Xoubi clarified the various
agreements that Jordan has signed with major nuclear energy
players worldwide. He indicated that in addition to the
U.S., the GOJ has signed MOUs on nuclear energy with Canada,
Korea, Romania, Russia, and the UK. Jordan has also signed
NCAs with Canada, China, France, and Korea. Details on each
of the agreements follow.


3. (SBU) Canada: In June 2008, JAEC signed an MOU with
Atomic Energy of Canada Limited and SNC-Lavalin International
to start bilateral nuclear-related technology cooperation.
In February 2009, the governments of Jordan and Canada signed
an NCA, which allows Canada to provide Jordan with technology

to build a nuclear reactor for energy-generating purposes as


well as water desalination. It also enables the two
countries to carry out research and development projects,
including the use of nuclear energy in agriculture, industry,
and medicine. The Trade Commissioner at the Canadian Embassy
in Jordan noted to Econoff that the agreement was
fast-tracked since it was Canada's first NCA in ten years.


4. (U) China: The GOJ signed an NCA with China in August
2008, as well as a protocol to the agreement in November

2008. The press reported that the agreements allow
cooperation and exchanges between the two sides on human
resource training, uranium mining and processing, and nuclear
plant design, construction and operation. In September 2008,
JAEC also signed with China a MOU specifically addressing
uranium extraction and development techniques. Another
agreement was signed in November 2008 to allow Jordan to
purchase a $2.65 million subcritical assembly from China to
be used for training students at the Jordan University of
Science and Technology (JUST).


5. (U) France: The GOJ signed an NCA with France in May 2008
and a protocol to the agreement in August 2008, which aim to
enhance and institutionalize cooperation in the nuclear field
between Jordanian and French companies. The agreement led to
the creation of a Joint Higher Jordanian-French Steering
Committee whose mission is to develop a nuclear strategy and
mechanisms to foster cooperation between the two sides in
areas such as uranium mining, the building of a nuclear power
plant, nuclear fuel cycle, nuclear waste management, safety
regulations, and human resource development.


6. (C) Korea: Jordan signed an NCA and a MOU with Korea in
December 2008. Chul Lee, Deputy Head of Mission in the
Korean Embassy in Amman, said that the agreements enable
Korean companies to participate in nuclear power projects,
although many firms still want to see the NCA signed with the
U.S. as an additional assurance. He stressed the importance
of the nuclear power plant project for Korea as the first
time the country would export its nuclear power generation
technology.


7. (SBU) Russia: Xoubi noted that in addition to an MOU with
Russia, the GOJ initialed an NCA with Russia in February

2009. The agreement would allow for the construction of
nuclear power plants and research reactors, as well as
cooperation in human resource development and the exploration
and mining of nuclear materials in Jordan. JAEC Deputy
Chairman Kamal Araj told press that the management of nuclear
waste would be a distinguishing feature of a nuclear package
with Russia given that nuclear fuel would be returned to
Russia after being used in Jordan. Xoubi said that the GOJ
has gotten feedback from the Russian government that it will
be ready to sign the agreement in April 2009.


8. (U) UK: Jordan and the UK signed an MOU on nuclear
cooperation in June 2008, which was meant to pave the way for
a nuclear cooperation agreement in the future. Press
reported that the parties agreed to cooperate on the
establishment of a reliable source of nuclear fuel for future
nuclear reactors in the Kingdom. The MOU also highlighted
cooperation on the development of human resources and nuclear
safety, power generation, and desalinating water using
nuclear energy.


Uranium Exploration Moving Forward
--------------


9. (SBU) The GOJ established Jordan Energy Resources Inc.
(JERI) as JAEC's commercial arm, which can contract or
partner with foreign companies to implement Jordan's nuclear
energy program. Currently responsible for uranium
exploration, JERI has identified six areas of potential
uranium reserves (not in phosphates): 1) Northern Jordan,
near Mafraq and the Syrian border; 2) Ruwaished, in
northeastern Jordan near the Iraqi border; 3) Central Jordan,
south of Amman near Attarat Um Gudhran and Wadi Maghar; 4)
Haranah, slightly northeast of the Central Jordan block; 5)
Wadi Bahiyyah in southern Jordan; and 6) Wadi Sahb Elabiadh
in the southeast. JERI also plans to explore at a later
stage two additional areas in southern Jordan close to the
Saudi border, which may contain other elements needed for a
nuclear program such as zirconium.


10. (SBU) In December 2008, JERI anQthe French company
AREVA established a 50-50 joint company called the
Jordanian-French Uranium Mining Company (JFUMC) to explore
the Central Jordan block, where most exploration has been
done to date. JFUMC has been conducting geochemistry tests
and developing a bankable feasibility study for this area,
which is estimated to contain uranium reserves of 64,000 tons
(out of an estimated 130,000 tons countrywide) mostly found
at 1.5 meters below the surface and suitable for extraction.
This block is expected to produce an estimated 2,000 tons per
years of uranium by 2012. The local media has reported that
this project will lead to the construction of the Kingdom's
first uranium mine and plant.


11. (SBU) In February 2009, JERI contracted the
British-Australian firm Rio Tinto to begin reconnaissance and
prospecting work in Ruwaished and Wadi Sabh Elabiadh. This
project is not as advanced as the work being done in central
Jordan because the quantity and grade of the uranium reserves
in those areas are not yet known. The firm will conduct
initial phases of grid studies and sample collecting to
determine prospects for future exploration of uranium. After
18 months, if the results are promising, the government
intends to negotiate an exploration agreement leading to the
establishment of another joint company between JERI and Rio
Tinto.


12. (SBU) Xoubi reported that JERI has two teams that are
exploring uranium reserves in the Northern Jordan and Wadi
Bahiyyah blocks. According to the press, the Chinese company
Sino Uranium has been helping JERI in those areas by taking
gamma measurements in preparation for mining.

PPP for One or Multiple Nuclear Power Plants
--------------


13. (C) Different GOJ officials have projected different
dates for the start of Jordan's first nuclear power plant
ranging between 2015 and 2020. Noting that it is all just
speculation, Xoubi opined that Jordan will have done an
"excellent" job if it can get a plant running by 2020. JAEC
Chairman Khaled Toukan previously told Econoff and local
press that a RFP would be issued by mid-March for an
international consultant to help Jordan develop the
preconstruction phase of the nuclear power plant, including


feasibility studies, technology selection, fuel cycle, waste
management, and safety procedures (ref A). The consultant
would also prepare bid documents for the nuclear power plant,
with the goal of announcing an international tender for the
plant's construction no later than the first quarter of 2011.
As of March 23, Xoubi confirmed that changes were still
being made to the RFP for the consultant, and the tender
would most likely be issued in early April.


14. (SBU) Xoubi reconfirmed Toukan's previous statements
that the GOJ plans to follow a PPP model for the nuclear
power plant (ref A). He said that the GOJ expects to have
some equity in the plant, but it would not necessarily need
to have a majority share and would be willing to consider
multiple partners or different investment configurations.


15. (C) Jordan initially anticipated a single 400 MW nuclear
reactor in order to keep nuclear power at about 10% of the
overall grid. Given that such a small sized reactor is not
commercially available, Jordan began considering larger
reactors, around 1,000 MW, which could also support
desalination. JAEC is now entertaining the idea of building
more than one reactor, which could be used to provide pumping
power for the Red-Dead canal project (ref B) and/or exporting
power to the region. Xoubi said that Jordan has proposed to
Egypt to increase their electricity interconnection from 500
MW to 1,000 MW and plans to approach Syria with increasing
their electricity interconnection from 300 MW to 500-1,000
MW. Toukan told press that JAEC has identified a site on the
south beach of the Gulf of Aqaba, outside the Aqaba Special
Economic Zone and nine kilometers inland, which could
potentially host four to six nuclear power plants. Xoubi
commented confidentially to Econoff that such plans for
multiple reactors in a relatively small area seem unrealistic
given the high demand for multiple infrastructure and tourist
projects in the same vicinity.


16. (SBU) JAEC has continued to express interest in
American-built reactors, particularly from GE and
Westinghouse, but has noted that the lack of a NCA has
hindered any real negotiations with U.S. companies (ref A).
Another model still under consideration is the 700 MW
Canadian CANDU reactor, which Canadian Liberal MP Bob Rae
promoted during a March 18 visit as being reliable and
efficient technology that has been built in the past
under-budget and under-time. There have also been
innumerable press reports about Jordan promising reactor
projects to various other foreign companies, including the
Chinese and AREVA which has always been portrayed as the
frontrunner.


17. (C) Most recently, the Prime Minister of Korea visited
Jordan on March 19 and promoted Korean technology as being a
competitive choice in terms of pricing and a short time-frame
for construction, which Lee said could be between 8.5 to 10
years from the time of site selection. The CEO of the Korean
Electric Power Corporation (KEPC) was also recently quoted in
the press as saying that Korea was previously being
considered for Jordan's second nuclear power plant but now
was competing with AREVA for the first reactor and a deal
might be concluded as early as April or May 2009. Lee noted
that the JAEC had indicated to the Korean Ambassador that a
decision might be made slightly later in July 2009, but
confirmed that JAEC made it seem as though the Koreans had a

MULTIPLE REACTORS UNDER CONSIDERATION

good shot at the first nuclear reactor. Lee said the Koreans
are looking at providing its 1,400 MW Advanced Pressurized
Reactor, but the Jordanians still need to figure out how its
power system would absorb such capacity. JAEC has also
suggested to the Koreans that a direct bilateral deal might
be possible instead of an international tender. Given the
recent announcements by JAEC to hire an international
consultant to prepare bid documents and ongoing discussions
with other foreign companies, Lee had no indication as to
which path the Jordanians were actually going to take. The
GOJ's ability to finance the project also seemed unclear at
this point in Lee's view.

RFP Out for Research Reactor
--------------


18. (SBU) JUST has a subcritical assembly under construction
that is supposed to be completed by the end of 2009. An RFP
for a research reactor was also issued on January 15, 2009
and sent to major producers in South Korea, China, Argentina,
and the U.S. (specifically General Atomics). Xoubi said that
offers for the research reactor are still being received.


19. (S/NF) Comment: There is considerable action by the JAEC
in developing Jordan,s nuclear energy program, but
surprisingly little coordination. The numerous agreements
reflect Toukan,s position that Jordan,s energy needs should
not be subject to direct or indirect control by any one
country (ref C). The round-robin approach, however, has
created confusion about the extent of Jordan,s program and
its current stage of development. At the Ambassador,s
urging, the GOJ only recently briefed Israel on its plans and
to the best of Post,s knowledge, has yet to engage Egypt.
The Israeli ambassador raised concerns about brine and
seismic activity, and the two siQ agreed that their experts
should soon meet.

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Beecroft