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.
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 ‘Triple Opportunity‘ could involve:
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 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
The License Agreement includes US$20 million in payments to Silex triggered by commercial development milestones:
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’
