The United States and Europe may let Iran continue converting uranium. This is a really bad idea.

David Sanger at the New York Times reports that IAEA DG Mohamed ElBaradei and SECSTATE Rice discussed a new proposal that would allow Iran to convert uranium at Isfahan (Esfahan), shipping the UF6 to Russia for enrichment.

The new proposal, officials from both Europe and the United States said, is an effort to give Iran a face-saving way out of its tense standoff by arguing that it has retained what it contends is its right to enrich uranium as a signer of the international Nuclear Nonproliferation Treaty, but has simply chosen to do so at facilities in another country.

According to officials briefed on the discussion between Ms. Rice and Dr. ElBaradei on Tuesday at the State Department, the two talked about letting Iran take a financial stake in an enrichment facility in Russia.

[snip]

The proposal on the uranium program, they said, would follow the same model: Russia and other nations would ensure that the uranium shipped to Iran would not be usable in a weapon. All of the nuclear waste would also have to be shipped out of the country.

Francois Murphy at Reuters and George Jahn at AP have more.

This is a bad deal—Iran’s conversion facility is a bottleneck in Tehran’s program. In the short-term, if Iran continues to improve various conversion related technologies (including the use of pulse columns for solvent extraction) then the international community is not delaying Iran’s possible bomb program.

The proposal is very similar to a recent South African plan to allowed Iran to continue to produce UF4 and UF6 at the Uranium Conversion Facility (UCF) in Isfahan, with the product being shipped to South Africa for storage during negotiations.

Mark Hibbs (“Iran’s critics reject South African proposal to let Iran operate UCF,” Nuclear Fuels 30:20, September 26, 2005, 8) reported that Western states opposed the South African plan because it allowed Iran to improve its conversion capabilites:

According to one Western official attending a meeting of the IAEA board last week, “Iran has technical problems to solve in three key areas of its nuclear program: making clean UF6, enriching uranium, and weaponization.”

If the South African proposal were to be accepted, he said, “Iran would be able to solve one of the three problems and take a step closer to their goal,” which he said was having the technical means to produce weapons-grade fissile material and nuclear weapons.

“We told South Africa this was a very bad idea,” said an official from another Western board delegation.

Those were good arguments then, they are good arguments now.

Over the long-term, the IAEA will be challenged to verify that Iran is not diverting significant amounts of UF6 for a clandestine centrifuge program. Iran has employed accounting practices for its nuclear material that would embarrass Ken Lay. As a colleague of mine recently said:

Since a nuclear fuel cycle is really just a chemical process with a really big chemistry kit, “stuff” gets lost. When these “process losses” happen, there’s usually a margin of error accounted for in the IAEA’s material balancing. They don’t expect countries to be perfect with accounting, just reasonable. Iran was able, according to the BOG reports, to declare process loss for material that had actually been diverted.

See where this one is heading?

Iran’s use of the process loss to hide material (depleted UO2, UF3O8, UF4) diverted to clandestine activities is fairly well documented in Implementation of the NPT Safeguards Agreement in the Islamic Republic of Iran, Report by the Director General, November 10, 2003, (GOV/2003/71).

Absent the imposition of some extraordinary accountancy mechanism, this is a really, really bad deal.

For more information on accounting for nuclear materials, see Chris Eldridge, Protection, Control, and Accounting of Nuclear Materials: International Challenges and National Programs—Workshop Summary.