A Radioactive Bank to be Welcomed
AUG 24, 2015 
CANBERRA
 – One of the many things the world has learned from the Iran nuclear 
saga is that its leaders made a mistake, when negotiating the Nuclear Non-Proliferation Treaty
 (NPT) in the 1960s, in not doing anything to constrain uranium 
enrichment and plutonium reprocessing. This failure apparently stemmed 
from the belief – long since proven wrong, certainly in the case of 
uranium – that the only states ever likely to possess that technical 
capability already possessed nuclear weapons, or (like Germany) were 
totally committed never to acquire them. 
As a result, any 
member state can argue for its “inalienable right” under the NPT to 
pursue any stage of the nuclear fuel cycle. Although any such right 
extends only to activities for “peaceful purposes,” the loophole is 
gaping. Any technically capable state – and there are now dozens of them
 – can build uranium enrichment facilities with the official purpose of 
producing fuel for nuclear power or research reactors, but which are 
nonetheless inherently capable of producing the much higher-grade fuel 
needed for nuclear weapons. 
It is not for nothing
 that such facilities have been described as “bomb starter kits,” and 
that Iran’s progress down that path – whether deliberately designed to 
give it a latent weapons breakout capability or not – has spooked so 
many others in the international community. That is why there was so 
much pressure to produce the deal now on the table, which dramatically limits Iran’s enrichment capability.
While renegotiating 
the NPT itself to close the enrichment loophole seems for now a lost 
cause, there are other ways to address this proliferation risk. One of 
the most important, and long-advocated, strategies is to demonstrate to 
countries that rely on nuclear power, or are planning to develop it, 
that they do not need their own uranium-enrichment program to ensure 
their fuel supply’s security.
Concern about 
fuel-supply security has always been Iran’s main publicly stated 
justification for acquiring its enrichment capability – a justification 
that its critics assert was manufactured simply to conceal a covert 
weapons agenda. Whether or not that is the case, all current and 
would-be nuclear power producers are entitled to be anxious about having
 an absolutely assured fuel supply, given the major economic and social 
consequences they would face in the event of a disruption.
Yes, until now, the 
commercial nuclear-fuel market has worked well: no power reactor has had
 to shut down because of fuel-supply disruptions. But the cut-off of the
 supply of other energy resources (notably Russia’s disruption of 
natural-gas supplies to Ukraine and, by extension, to Western Europe) 
has raised legitimate concerns about whether this could happen with 
nuclear fuel.
Although the issue 
has been much debated, until now there has been only modest progress in 
developing fuel-supply assurance arrangements that would meet this 
concern. Russia, with the support of the International Atomic Energy 
Agency (IAEA), maintains a sizeable reserve of low-enriched uranium 
(LEU) at its international center in Angarsk; but, in the current 
security environment, there has been understandable international 
reluctance to rely on it. The United Kingdom has proposed a supply 
guarantee of its own, though it has so far attracted little attention.
Now, in an important 
new development, to be officially launched this month (on August 27), 
Kazakhstan is establishing a major new international fuel bank,
 which it will operate on behalf of the IAEA. The new facility should 
once and for all remove the main excuse that has been advanced, 
sincerely or not, for building and maintaining homegrown enrichment 
capability.
Scheduled to commence
 operations in 2017, the Kazakh fuel bank will store up to 90 tons of 
LEU, sufficient to refuel three typical power-producing light water 
reactors. While Kazakhstan will physically operate the bank, the uranium
 will be owned and controlled by the IAEA, and made available to 
non-nuclear-weapon states if, for any reason, they cannot secure the LEU
 they need from the commercial market.
Provided the state in
 question is in compliance with its comprehensive non-proliferation 
safeguards agreement with the IAEA, it can draw the required fuel from 
the bank and transfer it to a fuel fabricator to make fuel assemblies 
for the reactors involved.
The Kazakh fuel bank 
has very wide and high-level international backing, helped by the 
country’s credentials. A former nuclear test-site state, Kazakhstan 
willingly gave up the nuclear weapons on its territory when the 
opportunity arose with the dissolution of the Soviet Union, and it has 
been a strong and consistent advocate of nuclear arms control and 
disarmament ever since.
The bank has been 
funded by voluntary contributions, including $50 million from the 
Nuclear Threat Initiative, a United States-based NGO, $49 million from 
the US government, up to $25 million from the European Union, $10 
million each from Kuwait and the United Arab Emirates, and $5 million 
from Norway.
Aside from the Iran 
deal, good news on nuclear weapons has been sparse in recent years. The 
new Kazakh fuel bank is a significant step toward achieving a world free
 of nuclear weapons. Those who have worked to establish it deserve the 
world’s gratitude.
Gareth Evans, former Foreign Minister of 
Australia (1988-1996) and President of the International Crisis Group 
(2000-2009), is currently Chancellor of the Australian National 
University.

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