1,000 jobs lost at uranium enrichment plant

BETHESDA, Md. — USEC Inc. said Monday about 120 employees and more than 850 workers for suppliers have lost their jobs since the Energy Department delayed a final review of the company’s application for a $2 billion loan guarantee to finance a uranium-enrichment plant in southern Ohio.

USEC suspended work on the project in August after the government’s decision over its plans for the American Centrifuge plant in Piketon.

Job losses have occurred in eight states with Ohio and Tennessee having the largest losses.

USEC said it is continuing with demonstration activities for the project and wants to be in a position to ramp back up should it be approved for the loan guarantees in 2010. The company said it hopes to update its application for the loan guarantee by early next year.

The government said in early August that it will hold off a final review of the application for at least six months. The government had previously asked the company to withdraw the application and come back again in 12 to 18 months.

USEC has said previously that has invested $1.5 billion in the project, which was expected to cost $3.5 billion. The company said in June that without the loan guarantee, it wouldn’t be able to obtain private financing.

USEC shares rose 15 cents, or nearly 3 percent, to $5.16 in trading Monday. The shares have traded between $2.58 and $7.24 over the past year.