US Firm to Enrich Uranium at South Africa's Pelindaba Nuclear Facility
Although founded only in 2021 and headquartered in Washington, D.C., ISP is building on technical expertise dating back to South Africa's uranium enrichment program of the 1980s, providing it with a strong scientific base in isotope separation technologies.
The move comes ahead of ISP's planned secondary listing on the Johannesburg Stock Exchange (JSE) on August 27, in parallel with a share-swap deal with Renergen, South Africa's sole producer of helium and liquefied natural gas.
Towards Advanced Nuclear Fuel Production
In a pre-listing statement, ISP said the agreement with Necsa will focus on research and development collaboration leading to commercial production of advanced nuclear fuel. The company noted that Uranium-235 enriched using its proprietary quantum enrichment technology could serve as fuel for small modular reactors (SMRs) — next-generation, high-efficiency nuclear plants currently under development for both commercial and governmental use.
In May, ISP signed a loan agreement worth up to $22 million with TerraPower, the U.S. nuclear innovation company founded by Bill Gates, to partially finance the new enrichment facility at Pelindaba. Commercial production is expected to begin once regulatory approvals are secured.
Multi-Billion-Dollar Supply Agreement
Under an initial supply agreement, the enriched fuel will be used in TerraPower's Natrium reactor project in Wyoming, which is slated to begin operations between 2027 and 2028. The deal is estimated at $375 million over 18 months, depending on fuel volumes and a fixed price.
Negotiations are also underway for a long-term 10-year supply contract running from 2028 to 2037, covering up to 150 metric tons of high-assay low-enriched uranium (HALEU) with a total value of up to $3.75 billion.
Johannesburg Listing Plans
Shareholders of Renergen approved the share-swap agreement on July 10. However, ISP has confirmed that its planned JSE listing will proceed regardless of whether the share-swap is finalized.
The company's market capitalization currently stands at around 15 billion rand ($831 million), with share premium calculations indicating a value of approximately $107.4 million.
Pelindaba, located west of Pretoria, has long been at the heart of South Africa's nuclear research and development, and the new partnership could mark a significant step in positioning the country as a player in the global advanced nuclear fuel supply chain.
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