Economic and Non-proliferation Policy Considerations of Uranium Enrichment in Brazil and Argentina

The nuclear development programs of both Argentina and Brazil have, since the 1970s, been premised on the desire for self-sufficiency and assurance of nuclear fuel supply. While military rivalry and mutual distrust led to nuclear weapons related development programs in the 1970s and 1980s, both countries have since terminated these programs. Furthermore, the governments of both countries have pledged their commitment to exclusively non-explosive use of nuclear energy and have signed the Non Proliferation Treaty (NPT). Utilizing rights provided for under the NPT, both Argentina and Brazil have nuclear fuel production facilities, with the notable exception of enrichment plants, that provide much of the current indigenous fuel requirements for their nuclear power plants. However, both countries are actively developing enrichment capability to fill this gap. The purpose of this report is to assess the economic basis and non-proliferation policy considerations for indigenous enrichment capability within the context of their desired self-sufficiency and to evaluate possible United States Government policy options.