BETHESDA, Md. - USEC Inc. (NYSE: USU) is petitioning the federal government to investigate the illegal dumping into the United States of foreign-enriched uranium, which has adversely impacted the U.S. enrichment industry. The Company is asking the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) to conduct an investigation and to impose duties upon future imports of enriched uranium from France, Germany, the Netherlands and the United Kingdom. This action of the Company reflects the policy of the Congress, together with past and present Administrations, to sustain a domestic uranium enrichment capacity essential for national security and the nation’s energy security.

USEC, the sole American producer of enriched uranium, cites its two European competitors in the petitions: Eurodif S.A., which is controlled by the French government, and Urenco, Ltd., a British-Dutch-German consortium. The Company charges that, contrary to U.S. and international trade law, Eurodif and Urenco are pricing enriched uranium below their cost of production and, in the case of Eurodif, below prices charged in its home market. USEC further asserts that its competitors are benefiting from government subsidies in their home markets. Both the dumping and subsidization have resulted in material injury to the U.S. industry.

The United States government has stressed for many years the importance of maintaining a domestic uranium enrichment capacity to ensure both national security and energy security. The trade actions announced today will help to preserve domestic enrichment capacity by ensuring fair trade practices in this vital industry.

"Prescribed by statute and then reinforced as a matter of policy by Administrations from both parties, it is a basic tenet of national security that domestic uranium enrichment capacity be maintained. The action we are taking, under the trade laws, is necessary to ensure that this clearly enunciated policy goal is achieved and sustained," said USEC President and CEO William H. Timbers.

"In this case, dumping is illegal—it is contrary to U.S. and international trade law, and it works against U.S. national security interests. We cannot allow unfair trade practices to continue to adversely impact the U.S. uranium enrichment business. After careful consideration, we are asking the federal government to investigate and to restore fair competition," he added.

The USEC petitions will be reviewed by the DOC, which will determine whether dumping and/or unfair government subsidization has taken place. In tandem, the ITC will investigate claims of material injury resulting from the unfairly traded imports. If the ITC determines that injury has occurred or is likely to occur, and the DOC confirms USEC’s assertions, U.S. law requires the DOC to impose antidumping and/or countervailing duties to eliminate the unfair pricing.

"The action taken by USEC is necessary to ensure that prices are not buffeted by unfair market practices," Timbers said. "It is not intended to eliminate competition, but rather to ensure fair trade and reliable domestic nuclear fuel supplies for the U.S. market in the long term. This is essential to our nation’s national security and energy security."

Timbers added, "If these companies are not dumping, then they have nothing to fear from a government inquiry. If they are violating U.S. trade laws, then the U.S. government should take appropriate action on behalf of the U.S. industry, its employees and its national security interests."

The DOC will decide within 20 days whether to open an investigation. If an investigation is opened, the ITC will make a preliminary decision on USEC’s allegations of injury in early 2001. Final determinations by the two agencies are expected toward the end of 2001.

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