USEC denied loan to finish uranium plant

July 28, 2009 8:58:43 AM PDT
USEC says the Department of Energy has denied its application for a $2 billion loan guarantee to complete the construction of an Ohio uranium enrichment plant.The Bethesda, Md. company is taking steps to "demobilize" the project, USEC President and CEO John K. Welch said Tuesday in a statement.

USEC Inc. has spent $1.5 billion developing the plant in Piketon, Ohio about 65 miles south of Columbus. The total cost was pegged at $3.5 billion. The company said in June that without the guarantee, it wouldn't be able to obtain private loans.

USEC spokeswoman Elizabeth Stuckle said Tuesday the company would try to find other financing, but that would be difficult in the current economic environment.