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Bolton's departure nixes protectionist voice from probe of US nuclear sector

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Bolton's departure nixes protectionist voice from probe of US nuclear sector

The departure of U.S. President Donald Trump's national security adviser, John Bolton, removes a protectionist voice from the administration's ongoing national security probe into the U.S. nuclear fuel supply chain, experts said, raising questions about the subsequent direction of the probe.

After a national security investigation into U.S. reliance on uranium imports, Trump in July declined to impose a domestic uranium quota in a decision that went against the U.S. Commerce Department's advice. At the same time, Trump directed a new working group, co-chaired by Bolton and Trump's chief economic adviser, Larry Kudlow, to consider alternatives to boost the U.S. nuclear fuel supply chain.

Experts following the process said in interviews that it is difficult to say what impact Bolton's departure will have on the probe but noted that he was a voice in favor of domestic protections. Bolton could not be reached for comment.

Katie Tubb, a senior policy analyst with the Heritage Foundation who has followed the process, said it was difficult to gauge where the working group would go with recommendations now that Bolton was gone.

"All of a sudden I don't know how to answer these questions anymore," Tubb said in regard to inquiries about the direction the working group may take.

Scott Melbye, executive vice president of U.S. uranium miner Uranium Energy Corp., also pointed to Bolton's departure as a key change to the working group. "It's too early to say what the impact is." Melbye said it was not clear what policies had gained traction with the working group, which is expected to report to Trump by mid-October.

The Nuclear Energy Institute, an industry group that promotes nuclear energy, recently called on Trump to consider using the Defense Production Act to boost the sector through direct funding and procurement policies to meet national security needs for the defense sector. The group could not be immediately reached for comment. It is unclear if the working group is considering the proposal.

Some industry experts are skeptical that the procurement policies are needed for the U.S. defense sector, at least any time soon. "Frankly we have already taken care of our naval fuel needs for next 60 years," Reuters quoted Sharon Squassoni, an energy expert with George Washington University, as saying. "We are awash in enriched uranium for weapons."

Tubb said she did not see an imminent national security need for protections, but there may be a rationale in the longer term for national security measures to ensure adequate domestic sources of supply.

Experts said in interviews that they expect to see the working group issue recommendations favoring U.S. industry. "Defense needs are clearly on the table," said Melbye, who also stressed a lack of clarity around the pending recommendations.

Tubb said the working group could take a regulatory approach to support nuclear energy, possibly using national security laws. "I expect there to be a deregulatory agenda," Tubbs said. "And it also wouldn't shock me if they make recommendations under the Defense Production Act."