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FINANCIAL TIMES on-line - 24 Feb 2000

US Protesters Confront BNFL

By Matthew Jones in London and Ralph Atkins in Berlin

US anti-nuclear campaigners flew to Britain on Wednesday to publicise their legal fight against plans by British Nuclear Fuels, the UK atomic power group, to build a $1.2bn nuclear waste incinerator near Yellowstone National Park.

Members of Keep Yellowstone Nuclear Free have filed two law suits against the US Department of Energy to try to stop the plant, including a $1bn class action led by Gerry Spence, the high profile attorney who has acted for Imelda Marcos and OJ Simpson.

The move will add to pressure on the government to drop plans to sell 49 per cent of BNFL to the private sector. It comes as BNFL faces further questions from PreussenElektra, the north German electricity company, over the falsification of quality documents for fuel supplied to the Unterweser atomic power plant in Lower Saxony.

The US campaign group is backed by wealthy contributors including James Wolfensohn, president of the World Bank, and Harrison Ford, the Hollywood actor. It will deliver 350 letters of complaint against the incinerator to John Taylor, BNFL's chief executive, on Friday.

BNFL's activities in the US are key to the government's plans to partially privatise BNFL by the end of this Parliament.

Approval for the plans will only be given if BNFL meets safety, commercial and environmental targets, one of which is to increase profits in the US by 15 per cent. BNFL officials said the waste incinerator would account for up to 20 per cent of BNFL's US order book, which stands at between $6bn and $9bn.

On Wednesday night, PreussenElektra was under political pressure to close its Unterweser plant following revelations on Tuesday that fuel with falsified documentation had been loaded into its reactor for three years.

JÄrgen Trittin, the Green party environment minister, urged the company to shut-down the plant voluntary to allow the exchange of four fuel rods filled with mixed oxide (Mox) fuel from BNFL's Sellafield plant.

German officials from the Lower Saxony and federal governments were checking the legal basis to shut down the plant if PreussenElektra failed to act voluntarily.

PreussenElektra has warned BNFL it is reconsidering its co-operation with the UK reprocessing group.

The British government has also faced calls to improve the management and safety of the Sellafield plant from the Nordic Council of Ministers, Japan and Ireland.

The council, which represents Denmark, Finland, Norway, Iceland and Sweden, on Tuesday demanded urgent talks with British ministers on the future of Sellafield, BNFL's Cumbrian plant.

Iceland is expected to raise the matter with Robin Cook, Britain's foreign secretary, at a meeting scheduled to take place in London on Friday.

Helen Liddell, energy secretary, has admitted the partial privatisation plans will now be delayed, although a timetable has never been published by the government.

A Department of Trade and Industry official said: "BNFL needs the confidence of its customers to sell its products in the market place and if it hasn't got that the Public Private Partnership will not go ahead."

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