Accessibility and Access Keys [0]
The shutdown of the Chalk River nuclear reactor that supplies medical isotopes has already cost Atomic Energy of Canada Ltd. nearly $40 million, according to internal AECL estimates obtained by Canwest News Service.
The National Research Universal reactor at AECL’s facilities in Chalk River, Ont., normally produces more than half the world’s supply of medical isotopes used to detect cancer and other illnesses. In mid-May, AECL shut down the reactor after discovering a heavy-water leak, forcing hospitals and clinics to deal with a global isotope shortage.
At the end of October, the total cost to AECL of the shutdown was estimated to have reached $39.9 million, according to information provided by the Crown corporation through the federal Access to Information Act. The documents, which suggest the shutdown is costing AECL roughly $7.3 million per month, offer the first detailed breakdown of the shutdown’s costs.
AECL spent $24.6 million on diagnosis, testing, equipment and manufacturing costs associated with repairing the leak. The documents also reveal that most repair contracts with outside suppliers were executed on a sole-source basis, rather than through a competitive bidding process. AECL said it chose that option because of the urgency of the shutdown, as well as the “unique qualifications” of the suppliers.
A further $2.5 million was spent on overtime, while $259,623 was attributed to heavy water lost through evaporation.
An additional $536,000 was spent on external consultants, who aided AECL with website design, newswire and video-hosting services, video production and photography, media monitoring and news conferences.
The Crown corporation also estimates it lost $12 million in revenue due to the shutdown.
AECL initially predicted the reactor would be out of service for “more than one month.” It now expects the shutdown to last until the first quarter of 2010.
At an appearance before the House of Commons natural resources committee in October, a senior AECL executive projected that the final cost of the shutdown was expected to be $70 million. Nuclear medicine experts said the shutdown has also dramatically increased the cost of medical isotopes.
Earlier this month, an expert panel on the isotope shortage urged the federal government to move quickly to build a new multi-use reactor that could supply isotopes.
The report estimated the cost of building a new reactor at between $500 million and $1.2 billion, depending on the features of the reactor. Operating the reactor would cost $35 million to $70 million a year.
AECL’s licence on the Chalk River reactor expires in 2011. It’s possible the licence could be extended to 2016, but beyond that, the reactor’s ability to operate is uncertain. It could take five to 10 years to build a new reactor, the panel concluded.