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DOE's General Counsel Determines Sudan Act Does Not Bar Areva Enrichment Services LLC Loan Application

December 28, 2009 - 10:57am

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Washington, DC - The Office of General Counsel was recently asked whether the Sudan Accountability and Divestment Act of 2007 barred the Department from considering a loan guarantee application submitted by Areva Enrichment Services LLC to help fund a uranium enrichment facility in Idaho.  The simple answer is no.  The Act, as passed by Congress, applies only to government procurements.  It does not apply to financial assistance programs or loan guarantee programs.  The Act, as passed by Congress, also applies only to the investments of the actual offerors (or contractors) for procurement contracts.  It does not apply to the investments of entities related to the applicants.  In this case, Areva Enrichment Services LLC has no investments in Sudan.  Rather, the parent corporation of Areva Enrichment Services LLC has a sixty percent interest in a Canadian company.  That Canadian company has a 40% interest in a mine in Sudan.  This investment by the Canadian company has no legal impact on any loan guarantee application, or even on any procurement contract proposal, made by Areva Enrichment Services LLC.

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