- What is Allocated Uranium?
Allocated Uranium is uranium in the form of UF6 meeting the requirements of ASTM C787-06, legal for use in the USA, stored in Designated Cylinders held in a segregated storage area at the uranium conversion facility of Honeywell International, Inc. at Metropolis, Illinois, USA.
- What is a Segregated Unit of Uranium (SUU)?
A Segregated Unit of Uranium (SUU) is a quantity of uranium in the form of uranium hexafluoride (UF6) containing 250 pounds U3O8 equivalent (95.6802 kgU as UF6) contained in a Designated Cylinder.
- What is a Designated Cylinder?
A Designated Cylinder is a UF6 cylinder certified for the transport and storage of UF6 with a unique identification number clearly marked on the cylinder and contains at least 85 SUUs.
- What is Allocated Materials Management Company (AMMC)?
A Delaware LLC formed by nuclear fuel and financial professionals to store commodities and issue Electronic Warehouse Receipts (EWRs). AMMC’s first product is the SUU. AMMC has entered into an agreement with ConverDyn, the sole US supplier of uranium conversion services, for the supply of specialized services related to SUUs.
- What is an Electronic Warehouse Receipt (EWR)?
An Electronic Warehouse Receipt (EWR) is a negotiable electronic document of title for an SUU containing the required information in accordance with Article 7 of the Uniform Commercial Code.
- Why did AMMC create the SUU?
Due to historical and operational considerations, most U3O8 worldwide is held in “fungible and comingled” form at various uranium conversion facilities in the USA, Canada and France. Some Owners derive a benefit from holding material in a form that is independent from the normal comingled inventories. The SUU provides Owners with a simple, secure, standardized U3O8 product that owners can easily identify, audit, finance, store, trade, and if desired, remove from a facility.
- Does AMMC also broker SUUs?
No. AMMC has an agreement and is entering into additional agreements with certain qualified brokers who will perform the functions of opening customer accounts and brokering SUUs. All AMMC customers must deal with an AMMC qualified broker. New York Nuclear Corporation has been designated as the first broker of EWR’s and it has exclusive rights to broker to most participants in the international nuclear fuel industry.
- How will trading in SUUs take place?
In its capacity as a Broker, NYNCO will quote bid and ask prices continuously and AMMC will clear and settle transactions every New York City business day.
- How will prices and volume be reported?
AMMC will make this information available after the close of business every day.
- Does AMMC need to have SEC or CFTC approval to operate?
No. Such approvals are not necessary since warehouse receipts and physical uranium are regulated under the UCC and not by SEC or CFTC regulation.
