Summary of Comments Made at a Press Conference by Hiroji Ohta, FEPC Chairman, on November 10, 2000

Today, I would like to talk about the decision to move ahead with MOX fuel processing, and the selection of Japan Nuclear Fuel Limited as the entity to operate the business (Reference Document No. 1).

The nine member companies of the FEPC (excepting Okinawa Electric Power Company) and the Japan Atomic Power Company decided today to move ahead with domestic processing of MOX fuel. In addition, and on the understanding that the processing facility will be sited in Rokkasho-Mura, Aomori, we have requested that the JNFL take charge of the facility's business operations.

As I have said in the past, nuclear power is essential if a resource-poor country such as Japan is to ensure the stability of its future power supply. Furthermore, nuclear power offers advantages in terms of environmental issues such as global warming.

From the standpoint of the electric power industry, it is essential that we establish a nuclear fuel cycle that allows us to make efficient use of precious uranium resources by reprocessing spent fuel to extract uranium and plutonium. Currently, we are largely dependent on overseas companies to carry out the work. If the nation is to efficiently utilize uranium as an economical and stable energy resource in the long term, the establishment of a domestic nuclear fuel cycle is of the utmost importance.

As electric power providers, we believe that the establishment of domestic MOX fuel processing facilities is an important step toward the achievement of a nuclear fuel cycle, and we have carried out numerous studies to support this. In fact, in October of 1998, we directed JNFL to investigate - both at home and abroad -- the technologies, safety measures and facilities required to set up MOX processing operations.

Based on their findings, I am pleased to report the following:
From a technical standpoint, ample safety and reliability can be achieved through appropriate use of existing domestic/overseas MOX fuel processing technology and domestic uranium fuel processing technology.
From an economic standpoint, the construction costs for a domestic facility will be comparable to those for a facility of similar size overseas.
As such, we have concluded that the establishment of a viable domestic MOX fuel processing operation is well within our grasp.

In addition, we believe that the JNFL is ideally suited to the task of overseeing such operations because of its reprocessing expertise and ability to make efficient use of existing reprocessing facilities and equipment. It is also internationally recognized as nuclear fuel cycle operator, and is in a position to obtain international cooperation once operations have begun.

Details of the proposed MOX processing operation are shown in Reference Document No. 1.

We have also concluded that JNFL's Nuclear Fuel Reprocessing Plant in Rokkasho-Mura is the ideal site for the construction of a MOX processing facility. Not only will it allow stable and economical transport of MOX powder, the raw material, it will help keep construction costs down by allowing co-utilization of existing facilities and equipment.

As currently proposed, the new facility will use MOX powder recovered at the Rokkasho-Mura reprocessing facility to produce up to 130 tons of MOX fuel each year for use in domestic light-water reactors.

Safety measures will, of course, be given top priority. In addition to conforming to all relevant laws, standards and regulations, the facility will be designed to minimize the exposure of staff personnel and public areas to radiation. For example, in addition to the radiation safeguards implemented at nuclear power generating facilities, the MOX powder will be handled in dry form, and stringent criticality safety measures will be applied to its shaping and measurement, as well as to the neutron-absorbing materials used in all equipment. In addition, we also plan to take into account the unique characteristics of the Rokkasho site to prevent the release of airborne particulates.

Current estimates as to how long it will take for the MOX processing plant to become operational are dependent on the availability of MOX powder, and on construction of the facility itself. But with completion of the fuel reprocessing plant scheduled for July 2005, we believe that the MOX plant could be operational within another three or four years after that. Construction costs are estimated at approximately 120 billion yen. In the months ahead, we plan to further refine the details of the facility's design.

With the advice and cooperation of local residents and other concerned parties, the FEPC will work closely with JNFL to establish both the reprocessing facility and the MOX fuel processing plant. In addition, we will do our utmost to make the nation's long-term plu-thermal plans a reality.

Finally, I would like to announce that we will hold next February's executive-level (Central Steering Committee) meetings in Rokkasho-Mura and Aomori City to confirm the progress being made in the establishment of nuclear fuel cycle operations.