Nuclear waste: A growing problem

Updated 31 December 2012
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Nuclear waste: A growing problem

ROKKASHO, Japan: How is an atomic-powered island nation riddled with fault lines supposed to handle its nuclear waste? Part of the answer was supposed to come from this windswept village along Japan’s northern coast.
By hosting a high-tech facility that would convert spent fuel into a plutonium-uranium mix designed for the next generation of reactors, Rokkasho was supposed to provide fuel while minimizing nuclear waste storage problems. Those ambitions are falling apart because years of attempts to build a “fast breeder” reactor, which would use the reprocessed fuel, appear to be ending in failure.
But Japan still intends to reprocess spent fuel at Rokkasho. It sees few other options, even though it will mean extracting plutonium that could be used to make nuclear weapons.
If the country were to close the reprocessing plant, some 3,000 tons of spent waste piling up here would have to go back to the nuclear plants that made it, and those already are running low on storage space. There is scant prospect for building a long-term nuclear waste disposal site in Japan.
So work continues at Rokkasho, where the reprocessing unit remains in testing despite being more than 30 years in the making, and the plant that would produce plutonium-uranium fuel remains under construction. The Associated Press was recently granted a rare and exclusive tour of the plant, where spent fuel rods lie submerged in water in a gigantic, dimly lit pool.
The effort continues on the assumption that the plutonium Japan has produced — 45 tons so far — will be used in reactors, even though that is not close to happening to a significant degree.
In nearby Oma, construction is set to resume on an advanced reactor that is not a fast-breeder but can use more plutonium than conventional reactors. Its construction, begun in 2008 for planned operation in 2014, has been suspended since the March 2011 Fukushima nuclear meltdowns, and could face further delays as Japan’s new nuclear watchdog prepares new safety guidelines.
If Japan decided that it cannot use the plutonium, it would be breaking international pledges aimed at preventing the spread of weapons-grade nuclear material. It already has enough plutonium to make hundreds of nuclear bombs — 10 tons of it at home and the rest in Britain and France, where Japan’s spent fuel was previously processed.
Countries such as the US and Britain have similar problems with nuclear waste storage, but Japan’s population density and seismic activity, combined with the 2011 Fukushima Dai-ichi nuclear disaster, make its situation more untenable in the eyes of the nation’s nuclear-energy opponents. Some compare it to building an apartment without a toilet.
“Our nuclear policy was a fiction,” former National Policy Minister Seiji Maehara told a parliamentary panel in November.
“We have been aware of the two crucial problems. One is a fuel cycle: A fast-breeder is not ready. The other is the back-end (waste disposal) issue. They had never been resolved, but we pushed for the nuclear programs anyway.”
Nuclear power is likely to be part of Japan for some time to come, even though just two of its 50 functioning reactors are operating and Japan recently pledged to phase out nuclear power by the 2030s.
That pledge was made by a government that was trounced in elections Dec. 16, and the now-ruling Liberal Democratic Party was the force that brought atomic power to Japan to begin with.
Liberal Democrats have said they will spend the next 10 years figuring out the best energy mix, effectively freezing a nuclear phase-out.
Japan’s new prime minister, Shinzo Abe, said he may reconsider the previous government’s decision not to build more reactors.
Construction at Rokkasho’s reprocessing plant started in 1993 and that unit alone has cost 2.2 trillion yen ($ 27 billion) so far. Rokkasho’s operational cost through 2060 would be a massive 43 trillion yen ($ 500 billion), according to a recent government estimate.
The reprocessing facility at this extremely high-security plant is designed to extract uranium and plutonium from spent fuel to fabricate MOX — mixed oxide fuel, a mix of the two radioactive elements. The MOX fabrication plant is set to open in 2016.
Conventional light-water reactors use uranium and produce some plutonium during fission. Reprocessing creates an opportunity to reuse the spent fuel rather than storing it as waste, but the stockpiling of plutonium produced in the process raises concerns about nuclear proliferation.
Fast-breeder reactors are supposed to solve part of that problem. They run on both uranium and plutonium, and they can produce more fuel than they consume because they convert uranium isotopes that do not fission readily into plutonium. Several countries have developed or are building them, but none has succeeded in building one for commercial use. The US, France and Germany have abandoned plans due to cost and safety concerns.
The prototype Monju fast-breeder reactor in western Japan had been in the works for nearly 50 years, but after repeated problems, authorities this summer pulled the plug, deeming the project unworkable and unsafe.
Monju successfully generated power using MOX in 1995, but months later, massive leakage of cooling sodium caused a fire. Monju had another test run in 2010 but stopped again after a fuel exchanger fell into the reactor vessel.

Some experts also suspect that the reactor sits on an active fault line. An independent team commissioned by the Nuclear Regulation Authority is set to inspect faults at Monju in early 2013.
Japan also burned MOX in four conventional reactors beginning in 2009. Conventional reactors can use MOX for up to a third of their fuel, but that makes the fuel riskier because the plutonium is easier to heat up.
Three of the conventional reactors that used MOX were shut down for regular inspections around the time three Fukushima Dai-ichi reactors exploded and melted down following the March 201l earthquake and tsunami. The fourth reactor that used MOX was among the reactors that melted down. Plant and government officials deny that the reactor explosion was related to MOX.
Japan hopes to use MOX fuel in as many as 18 reactors by 2015, according to a Rokkasho brochure produced last month by the operator. But even conventionally powered nuclear reactors are unpopular in Japan, and using MOX would raise even more concerns.
When launched, Rokkasho could reprocess 800 tons of spent fuel per year, producing about 5 tons of plutonium and 130 tons of MOX per year, becoming the world’s No. 2 MOX fabrication plant after France’s Areva, according to Rokkasho’s operator.
The government and the nuclear industry hope to use much of the plutonium at Oma’s advanced plant, which could use three times more plutonium than a conventional reactor.
Meanwhile, the plutonium stockpile grows. Including the amount not yet separated from spent fuel, Japan has nearly 160 tons. Few countries have more, though the US, Russia and Great Britain have substantially more.
“Our plutonium storage is strictly controlled, and it is extremely important for us to burn it as MOX fuel so we don’t possess excess plutonium stockpile,” said Kazuo Sakai, senior executive director of Rokkasho’s operator, JNFL, a joint venture of nine Japanese nuclear plant owners.
Rokkasho’s reprocessing plant extracted about 2 tons of plutonium from 2006 to 2010, but it has been plagued with mechanical problems, and its commercial launch has been delayed for years. The operator most recently delayed the official launch of its plutonium-extracting unit until next year.
The extracted plutonium will sit there for at least three more years until Rokkasho’s MOX fabrication starts up.
Giving up on using plutonium for power would cause Japan to break its international pledge not to possess excess plutonium not designated for power generation. That’s why Japan’s nuclear phase-out plan drew concern from Washington; the country would end up with tons of plutonium left over. To reassure Japan’s allies, government officials said the plan was only a goal, not a commitment.
Japan is the only nation without nuclear weapons that is allowed under international law to enrich uranium and extract plutonium without much scrutiny. Government officials say they should keep the privilege. They also want to hold on to nuclear power and reprocessing technology so they can export that expertise to emerging economies.
Many officials also want to keep Rokkasho going, especially those in its prefecture (state) of Aomori. Residents don’t want to lose funding and jobs, though they fear their home state may become a waste dump.
Rokkasho Mayor Kenji Furukawa said the plant, its affiliates and related businesses provide most of the jobs in his village of 11,000.
“Without the plant, this is going to be a marginal place,” he said.
But Rokkasho farmer Keiko Kikukawa says her neighbors should stop relying on nuclear money.
“It’s so unfair that Rokkasho is stuck with the nuclear garbage from all over Japan,” she said, walking through a field where she had harvested organic rhubarb. .”.. We’re dumping it all onto our offspring to take care of.”
Nearly 17,000 tons of spent fuel are stored at power plants nationwide, almost entirely in spent fuel pools. Their storage space is 70 percent filled on average. Most pools would max out within several years if Rokkasho were to close down, forcing spent fuel to be returned, according to estimates by a government fuel-cycle panel.
Rokkasho alone won’t be able to handle all the spent fuel coming out once approved reactors go back online, and the clock is ticking for operators to take steps to create extra space for spent fuel at each plant, Nuclear Regulation Authority Chairman Shunichi Tanaka said.
“Even if we operate Rokkasho, there is more spent fuel coming out than it can process. It’s just out of balance,” he said.
A more permanent solution — an underground repository that could keep nuclear waste safe for tens of thousands of years — seems unlikely, if not impossible.
The government has been drilling a test hole since 2000 in central Japan to monitor impact from underground water and conduct other studies needed to develop a potential disposal facility. But no municipality in Japan has been willing to accept a long-term disposal site.
“There is too much risk to keep highly radioactive waste 300 meters underground anywhere in Japan for thousands or tens of thousands of years,” said Takatoshi Imada, a professor at Tokyo Technical University’s Decision Science and Technology department.


Saudi EXIM Bank targets African markets with 4 new MoUs 

Updated 6 sec ago
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Saudi EXIM Bank targets African markets with 4 new MoUs 

RIYADH: Saudi Arabia is accelerating the expansion of its non-oil exports into African markets, with the Saudi Export-Import Bank securing four new strategic agreements to strengthen trade and investment ties across the continent.  

Saudi Export-Import Bank CEO Saad bin Abdulaziz Al-Khalb signed memoranda of understanding with Africa50, the Ghana Export-Import Bank, Blend International Limited, and Guinea’s Ministry of Planning and International Cooperation, the Saudi Press Agency reported.  

The deals were finalized on the sidelines of the African Development Bank Group’s annual meetings, held in Côte d’Ivoire from May 26 to 30. 

The newly signed deals come as Saudi exports to Africa surged 20.6 percent year on year to SR7.84 billion ($2.09 billion) in March 2025, reflecting growing trade ties between the Kingdom and the continent.  

Al-Khalb said the bank’s participation in the meetings aims to deepen international trade relations and forge partnerships that support Saudi non-oil export growth in African markets. 

The SPA report added: “He stated that the memoranda of understanding are an extension of the bank’s efforts to promote trade exchange, stimulate development projects, and enable local exporters to export their services and products to African markets through effective and extended partnerships, contributing to supporting sustainable development goals and enhancing economic integration.” 

He also described the gathering as a valuable opportunity to boost economic cooperation and engage with officials from export credit agencies and financial institutions across African countries. 

The agreements were signed by Saudi EXIM CEO Saad bin Abdulaziz Al-Khalb, along with Alain Ebobisse, CEO of Africa50; Sylvester Mensah, CEO of the Ghana Export-Import Bank; Ravi Gupta, managing director of Blend International Limited; and Ismail Nabeh, minister of planning and international cooperation of Guinea.

The MoU with Africa50 is aimed at enhancing cooperation in infrastructure projects by partnering with Saudi companies. The agreement with the Ghana Export-Import Bank will focus on exploring cooperation opportunities and enhancing bilateral exports of services and products. 

Meanwhile, the MoU with Blend International Limited is aimed at targeting broader trade opportunities and international partnerships. The deal with Guinea’s Ministry of Planning and International Cooperation seeks to bolster development projects and investment in priority sectors, enabling Saudi exports of engineering services and industrial supplies. 

Also, on the sidelines of the event, Al-Khalb and his delegation held in-depth discussions with leaders of several international financial institutions, focusing on expanding trade ties and boosting the flow of Saudi non-oil exports into African markets.


Asia’s first Saudi sukuk ETF launched in Hong Kong

Updated 1 min 17 sec ago
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Asia’s first Saudi sukuk ETF launched in Hong Kong

RIYADH: Hong Kong has launched Asia’s first exchange-traded fund tracking Saudi sovereign sukuk, marking a major development in financial cooperation between East Asia and the Middle East.

The Premia BOCHK Saudi Arabia Government Sukuk ETF, listed on the Hong Kong Stock Exchange, follows the iBoxx Tadawul Government & Agencies Sukuk Index. It includes both riyal- and US dollar-denominated sukuk issued by the Saudi government and related agencies.

The ETF is traded under stock codes 3478 for the Hong Kong dollar counter and 9478 for the US dollar counter. It has been approved by the Securities and Futures Commission of Hong Kong. It offers quarterly US dollar distributions, with fees capped at 0.35 percent and an expected annual tracking difference of around -2 percent.

The launch coincided with the opening of the Capital Markets Forum, a two-day event hosted by Saudi Tadawul Group and Hong Kong Exchanges and Clearing Ltd., aimed at boosting cross-border investment.

This year’s forum, held under the theme “Powering Connections,” focuses on strengthening economic and capital market ties between the Middle East and East Asia.

The ETF is managed by Premia Partners, with BOCHK Asset Management Ltd. serving as investment adviser.

Speaking at the forum, Mohammed Al-Rumaih, CEO of the Saudi Exchange, said the CMF is becoming “a leading global platform for collaboration and dialogue on the future of capital markets and economic transformation.”

“We aim to strengthen ties with both local and international investors and to reinforce the Saudi capital market’s position as a leading global hub, serving as a bridge between capital markets in the East and West,” Al-Rumaih said.

Bonnie Y. Chan,  CEO of Hong Kong Exchanges and Clearing Ltd, said that the partnership with Saudi Tadawul Group underscores the strong ties between the two exchanges.

“This second edition of the forum will serve as a dynamic platform to connect our broad base of investors and issuers, while encouraging deeper dialogue and collaboration among the capital-raising hubs of Mainland China, Hong Kong, and the Middle East,” Chan said.

The forum featured a series of keynote speeches and panel discussions focused on global economic trends, investment strategies, financial innovation, and the integration of sustainability into financial markets.

As part of the event, the Corporate Access Program enabled direct engagement between investors and senior executives from listed companies and capital market institutions across the region, fostering greater transparency and dialogue.

The launch of the ETF, alongside the Capital Markets Forum, reflects Saudi Arabia’s commitment to elevating its capital markets on the global stage. These efforts align with the Kingdom’s Vision 2030 strategy to enhance financial sector integration and attract foreign investment.

At the same time, Hong Kong continues to strengthen its role as a vital conduit for capital flows between East and West, reinforcing its position as a leading international financial hub.


Qatar’s debt market to surpass $150bn on steady issuance, Fitch says 

Updated 29 May 2025
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Qatar’s debt market to surpass $150bn on steady issuance, Fitch says 

RIYADH: Qatar’s debt capital market is expected to exceed $150 billion in the medium term, supported by continued momentum in issuance across sovereign, bank, and corporate segments, according to a new analysis.

In its latest report, Fitch Ratings said the Qatari DCM expanded 13 percent year on year in the first four months of 2025, pushing outstanding volume to $131.8 billion.  

The analysis noted that sovereign issuers accounted for the majority with 60 percent, while banks and corporates contributed 26 percent and 14 percent, respectively. 

The study positions Qatar’s growth within broader Gulf Cooperation Council trends, where the region’s overall DCM surpassed $1 trillion as of November, driven by robust oil revenues. In a February update, Fitch projected that the GCC will continue to rank among the top emerging-market issuers of dollar-denominated debt through 2025.

On Qatar’s DCM growth, Fitch stated: “Sukuk, ESG (environmental, social, and governance), and Qatari riyal market penetration are on an upward trajectory. The potential development of digital government bonds, as part of the Qatar Central Bank’s Central Bank Digital Currency project, can support the market’s depth and sophistication.”  
 
The DCM, which involves the trading of securities like bonds and promissory notes, serves as a key mechanism for raising long-term capital for both businesses and governments. 

Qatar ranks as the third-largest DCM source in the GCC, holding a 13 percent regional share by the end of April. However, issuance volume dropped to $9.6 billion in the first four months of the year, a 36 percent decline from the same period in 2024. 
 
The share of sukuk in the DCM rose to 16.9 percent or $22 billion, but sukuk issuance slumped 86 percent year on year. Bond issuance fell 18 percent during the same period. 
 
“Fitch’s base case is that the government is going to refinance upcoming external market debt maturities and tap markets to cover a small budget surplus in 2025 under the assumption of a Brent oil price of $65 per barrel (excluding QIA investment income), while banks and corporates are likely to continue to diversify funding sources,” the report stated.  
 
While 67 percent of outstanding Qatari DCM remains US dollar-denominated, 28 percent is in riyals. In 2024, approximately 90 percent of the sovereign’s bond issuance and all sovereign bond sukuk were riyal-denominated. 

The report highlighted that ESG debt is becoming a key dollar funding tool, accounting for almost 30 percent of all dollar DCM issuance in 2024. ESG DCM volume hit $4.1 billion by April, rising 204 percent year on year, with sukuk accounting for 18 percent. 
 
Qatar’s debt-to-GDP ratio is expected to rise to 49 percent in 2025 before falling below 45 percent by 2027 on the back of increased gas output and associated budget surpluses. 

Fitch projects the US Federal Reserve will cut interest rates to 4.25 percent by the end of 2025, a trend the Qatar Central Bank is likely to follow. 

In a separate February report, the agency forecast Saudi Arabia’s DCM would hit $500 billion by end-2025, spurred by the Kingdom’s Vision 2030 diversification plan. 


Saudi Aramco cuts propane, butane prices for June

Updated 29 May 2025
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Saudi Aramco cuts propane, butane prices for June

RIYADH: Saudi Aramco has reduced its official selling prices for propane and butane for June 2025, according to a company statement issued on Thursday.

The price of propane was cut by $10 per tonne to $600, while butane saw a steeper reduction of $20 per tonne, bringing it to $570.

The adjustments reflect shifts in market conditions and follow a downward trend from the previous month.

Propane and butane, both classified as liquefied petroleum gas, are widely used for heating, as vehicle fuel, and in the petrochemical industry. Their differing boiling points make each suitable for distinct industrial and domestic applications.

Aramco’s LPG prices are considered key benchmarks for supply contracts from the Middle East to the Asia-Pacific region.

The global LPG market is undergoing a significant shift as steep tariffs on US imports prompt Chinese buyers to replace American cargoes with supplies from the Middle East. 

Meanwhile, US shipments are being redirected to Europe and other parts of Asia.

This realignment is expected to put downward pressure on prices and demand for shale gas byproducts, posing financial challenges for both US shale producers and Chinese petrochemical companies. At the same time, it is likely to drive increased interest in alternative feedstocks such as naphtha.

Middle Eastern suppliers are emerging as key beneficiaries, filling the gap left by reduced US exports to China. In addition, opportunistic buyers in Asian markets like Japan and India are capitalizing on the price drops to secure more favorable deals.


Saudi Arabia holds many ‘promising investment opportunities’ for Chinese investors, says finance minister  

Updated 29 May 2025
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Saudi Arabia holds many ‘promising investment opportunities’ for Chinese investors, says finance minister  

RIYADH: Saudi Arabia offers “many promising investment opportunities” for Chinese investors across infrastructure, tourism, and industry, said Finance Minister Mohammed Al-Jadaan during a high-level meeting.  

Speaking at the fourth meeting of the Financial Sub-Committee of the High-Level Saudi-Chinese Joint Committee, he highlighted opportunities, including “partnerships between the Saudi public sector and Chinese companies.” 

The remarks come as Saudi Arabia and China continue to deepen economic ties, with China remaining the Kingdom’s top trading partner. In the first quarter, Saudi exports to China reached SR44.91 billion ($11.97 billion), while imports totaled SR59.33 billion — underscoring both nations’ focus on strategic cooperation under Vision 2030 and the Belt and Road Initiative. 

Al-Jadaan emphasized the significance of both countries’ roles in the global economy.  

“Saudi Arabia and China have a key role in achieving global economic integration through their effective participation in multilateral platforms,” he said.  

Co-chaired by Al-Jadaan and Chinese Minister of Finance Lan Fo’an, the virtual gathering focused on deepening bilateral economic and financial cooperation, as well as enhancing coordination on global financial platforms.  

Discussions included areas such as tax policy, capital markets, and banking regulation, as well as infrastructure development and public-private partnerships.  

The deepening economic ties between the two countries follow a series of major agreements signed earlier in May during the Saudi-Chinese Business Forum in Beijing.  

At the gathering, the Kingdom and China concluded 57 agreements and memoranda of understanding, valued at over SR14 billion ($3.7 billion), covering sectors including agriculture, water, environment, fisheries, and livestock.  

Notable initiatives include the planned development of a Smart Food Security City in Saudi Arabia, which will comprise factories, laboratories, and integrated logistics services, as well as the establishment of an agro-industrial zone in Jazan aimed at strengthening supply chains and attracting agriculture-focused industrial investment.  

Of the 57 agreements, 26 are dedicated to boosting Saudi exports to China, encompassing products such as dates, vegetables, fruits, and bottled water.  

During the virtual meeting, Al-Jadaan called for enhanced financial integration and alignment of economic policies to support mutual prosperity.  

“It is essential to continue deepening trade and investment relations, promoting financial integration, and coordinating policies between both nations to foster shared prosperity and sustainable development,” he added.  

The minister also emphasized the importance of innovation and collaborative research.  

“To create a more inclusive and competitive financial environment, it is essential to explore new and innovative domains, enhance research and development, and deepen public-private sector partnerships,” Al-Jadaan said.  

Highlighting the value of multilateral engagement, he noted that such platforms are vital for addressing global development goals.  

“Multilateral platforms provide an optimal opportunity for both nations to support emerging economies and achieve important economic goals such as development, poverty reduction, and promoting effective and inclusive dialogue globally,” he said.  

Vice Minister of Finance Abdulmuhsen Al-Khalaf, speaking in a session titled “Economic and Financial Multilateral Coordination,” praised the leadership of Saudi Arabia and China within international institutions such as the International Monetary Fund and the World Bank.  

He called for forums like the G20 to prioritize cooperative and solution-focused approaches to global economic challenges.  

Al-Khalaf also acknowledged the two countries’ roles in debt relief initiatives, including the Debt Service Suspension Initiative and the Common Framework for Debt Treatment.  

He urged both sides to continue engaging in global and regional multilateral platforms to strengthen their positions in international financial governance.