Global Laser Enrichment

GLE is jointly owned by Silex (51%) and Cameco Corporation (49%)
GLE is the exclusive licensee of the SILEX technology for uranium enrichment
Technology commercialisation project being conducted at GLE’s Wilmington, North Carolina facility and at Silex’s Sydney facility

GLE – The SILEX Laser-Based Uranium Enrichment Technology Commercialisation Vehicle

GLE is the exclusive licensee of the SILEX uranium enrichment technology. GLE is a jointly-controlled venture between Silex (51%) and global uranium and nuclear fuel provider, Cameco Corporation (49%). GLE’s exclusive worldwide licence to commercialise the SILEX technology for uranium enrichment is founded on the 2006 Technology Commercialisation and Licence Agreement, amended in 2021. The technology commercialisation project is being conducted jointly at GLE’s Wilmington, North Carolina (NC) facility and at Silex’s Sydney facility.

Today, the GLE joint venture continues to accelerate activities in the full-scale pilot demonstration project for the SILEX uranium enrichment technology, with the aim of completing the Pilot Demonstration Program (TRL-6) by the end of CY2024 (subject to an assessment and report by an independent engineering contractor). The TRL index is a globally accepted benchmarking tool for tracking progress in the development and maturation of a new technology through the early-stage blue sky research (TRL-1) to actual system operation over the full range of expected conditions and ready for scaled commercial operations (TRL-9). In general terms, TRL-6 represents the pivotal demonstration of full engineering-scale systems in a pilot plant facility. The reference document used by GLE is the US Department of Energy (DOE) Technology Readiness Assessment Guide (G 413.3-4A).

Subject to various factors, including the successful completion of TRL-6 pilot demonstration, industry and government support, a feasibility study for the PLEF, and continued supportive market conditions, GLE will continue to advance its commercialisation activities in order to support the potential commencement of commercial operations at the PLEF ahead of the original plan of 2030.

Paducah Laser Enrichment Facility (PLEF) Commercial Plant Opportunities

Three key factors are driving potential transformation of the global nuclear fuel supply chain, presenting GLE with a ‘Triple Opportunity’ to produce three different grades of nuclear fuel – all via the deployment of SILEX laser-based uranium enrichment technology at the proposed PLEF Commercial Plant:

the growing shift towards utilisation of nuclear power by many countries around the world in response to heightened concerns over global climate change and the need to establish emissions-free electrical energy systems
the significant increase in global demand for electricity, driven by population and economic growth factors, including substantial investments into, and uptake of, AI, data centres, and electric vehicles
the impact of geopolitical developments on global energy security, principally Russia’s invasion of Ukraine, resulting in the bifurcation of the international nuclear fuel market.

The ‘Triple Opportunity‘ could involve:

PLEF UF₆ Production: Production of natural grade UF₆ (with U-235 assay of 0.7%) via processing of depleted tails (U-235 assays of 0.25% to 0.5%) with the SILEX technology (the original PLEF project), which would come in the form of already converted uranium, thereby also helping to alleviate UF₆ conversion supply pressure;
PLEF LEU Production: Production of LEU (U-235 assays up to 5%) and LEU+ (assays from 5% to 10%) from natural grade UF₆ with additional SILEX enrichment capacity – to supply fuel for existing reactors;
PLEF HALEU Production: Production of HALEU (U-235 assays up to ~20%) via enrichment with the SILEX technology to supply fuel for next generation advanced reactors, including SMRs.

The PLEF project opportunities are underpinned by the 2016 agreement between GLE and the DOE, which, through the acquisition of over 200,000 metric tonnes of depleted tails owned by the DOE, provides the feedstock for the production of natural grade uranium hexafluoride (UF₆) over three decades. The output of the proposed plant would be sold into the global uranium market at an expected production rate equivalent to a uranium mine with an annual output of up to 5 million pounds of uranium oxide, which would rank in the top 10 of today’s uranium mines. Preliminary analysis by Silex of PLEF UF₆ Production indicates it could rank equal to a ‘Tier 1’ uranium project based on current estimates of longevity and low cost of production.

The SILEX Technology Commercialisation and License Agreement with GLE

Perpetual royalty of a minimum of 7%: payable to Silex on GLE’s enrichment (SWU¹) revenues from use of the SILEX technology
US$20 million in Milestone Payments: payable to Silex triggered by commercial development milestones

The Technology Commercialisation and License Agreement between Silex and GLE is an exclusive worldwide license for exploitation of the SILEX technology for uranium enrichment. The License Agreement, including the above-noted royalty revenues and milestone payments, is independent of Silex’s 51% equity interest in GLE and any commercial benefits flowing from that interest.

_{1. SWU – Separative Work Unit is the unit of enrichment traded in the market}

Payments to Silex triggered by Commercialisation Milestones

The License Agreement includes US$20 million in payments to Silex triggered by commercial development milestones:

Commercial pilot demonstration (TRL-6¹): US$5 million
Commencement of PLEF Engineering Procurement and Construction (EPC): US$5 million
PLEF commercial operations: US$10 million

The key value of the License Agreement is a perpetual royalty of 7% (min.) on revenues generated by GLE from the use of SILEX technology for the production of natural and enriched uranium. The actual value of the royalty payable is a function of the capital costs of revenue-generating facilities, which is the key commercial driver of the SILEX technology in comparison to centrifuge technology.

_{1. Technology Readiness Level 6 (TRL-6) as defined in DOE Technology Readiness Assessment Guide ‘DOE G 413.3-4A’}