Feds launch process for restructuring AECL Laboratories

The federal government has issued a request for expression of interest (RFEOI) in the nuclear laboratories of Atomic Energy of Canada Ltd (AECL) — "the heart and soul" of the remaining crown corporation — to help determine the restructuring process that has already culminated in the sale of its CANDU reactor division to SNC Lavalin last year (R$, August 9/11).

According to documentation posted on the MERX web site, "the restructuring will focus on establishing the most appropriate long-term mandate, governance and management structures for the Laboratories, to enhance their performance, optimize the return on Canadian tax-payer investment and support the knowledge economy". A public-private partnership is among the range of potential arrangements the government is examining.

The restructuring of AECL was first announced in May/09 to determine "how to reduce federal contributions to AECL, notably through enhanced cost recovery for all services AECL provides to third parties, and/or through partnership or management opportunities as identified through this or other processes". The RFEOI marks the beginning of Phase I of the restructuring process.

AECL has two main facilities — its Chalk River Laboratories centred around the aging NRU reactor and Whiteshell Laboratories which is primarily devoted to waste management and environmental remediation. The Crown corporation employs more than 3,000 people.

The Chalk River facilities are also used by a wide range of researchers from academia, industry and government. Academic researchers have been particularly active in lobbying the government to approve the construction of a new reactor (R$, August 9/11). It's estimated that it will take eight-to-10 years to design, build and license a new facility.

The NRU reactor is used to produce medical isotopes for Nordion (formerly MDS Nordion) which ships them worldwide for use in medical procedures. The government recently funded four projects to validate the production of the isotopes using cylcotrons and linear accelerators rather than nuclear reactors using weapons-grade uranium (R$, January 31/11).

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