Any sale of its stake in Atomic Energy of Canada Limited (AECL) could potentially bring billions of dollars in revenue into federal government coffers. The sale’s intention is to find a partner that would boost sales for the company’s Candu reactors.
AECL Sale Part Of Larger Restructuring Plan
The sale of AECL is part of a larger restructuring plan following a company-wide review. The review lasted two years, and the final plan is to split the agency off into two companies. One side would operate the CANDU nuclear reactor operations, and the other would be the research facility at Chalk River. A private company will manage the facility.
Natural Resources Minister Lisa Raitt defended the possible sale arguing it would reinforce the Canadian nuclear industry. According to Raitt, in remarks published on ctv.ca the government’s intention is to help establish the reactor section and increase its presence on the world stage: “ The CANDU Reactor sector is too small to establish a strong presence globally in the high growth markets that are key to its success.”
Finance Minister Jim Flaherty recently announced a budget deficit of $50 billion. The possible revenue generated by the sale would help cushion the blow of further increases to that amount.
Chalk River Faces Third Shutdown In Under 2 Years
The Chalk River Research facility was shut down May 15th, and is likely to remain closed for the next three months. The cause is a hard-water leak at the base of the reactor vessel; the cause of which is corrosion. A recent inspection also showed corrosion in other places within the facility, but experts emphasize there is no risk to the public. Some reports speculate the reactor cannot be fixed.
The shutdown causes problems for the world’s isotope supply. Isotopes are used in numerous medical tests and treatments, including some cancer treatments. Chalk River supplies 30% of the world’s isotope supply, and the shortage has forced hospitals to share, and hit laboratories hard. MDS Labs is estimating the shutdown will cost it $4 million/month for each month the nuclear facility is shut down.
The medical community views the AECL sale as a way to speed up the supply lines. In comments published by ctv.ca Dr. Christopher O’Brien of the Ontario Association of Nuclear Medicine said any way that can happen is a positive step: “Anything we can do to maintain that infrastructure and narrow the supply lines is a good thing.”
Selling AECL is expected to be a long process. It's a crown corporation and any sale would likely have to be approved by Parliament.
Laura Steiner - First hand experience covering politics at all levels; municipal, provincial, and federal.
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