WASHINGTON, Dec 10 (Reuters) - The U.S. Energy

Department said on Tuesday it is offering initial contracts to

six companies to produce domestic uranium fuel for conventional

nuclear plants to generate electricity.

WHY IT'S IMPORTANT

The department is trying to kick-start a domestic uranium

fuel supply chain to reduce dependence on Russia, from which

U.S. reactors get about 25% of their enriched uranium in recent

years. The United States put a ban on the imports from Russia as

part of a package of sanctions on Moscow over its full scale

invasion of Ukraine. The ban allows waivers until 2028.

The U.S. is investigating uranium imports to see if China is

helping Russia circumvent the ban.

KEY QUOTE

"These contracts generated from this action will help spur

the safe and responsible build-out of uranium enrichment

capacity in the United States," said Michael Goff, principal

deputy assistant secretary for nuclear energy.

THE COMPANIES

The following companies won contracts: Centrus's

American Centrifuge Operating; General Matter; Global Laser

Enrichment; Urenco's Louisiana Energy Services; Laser Isotope

Separation Technologies and Orano Federal Services.

Four of those companies got initial U.S. contracts in

October to produce a more enriched fuel called high assay low

enriched uranium, or HALEU, to be used in smaller reactors that

are not yet commercial.

Conventional uranium fuel is up to 5% enriched while HALEU

is up to 20% enriched.

BY THE NUMBERS

The contracts at the start are for a minimum of $2 million.

They will last for up to 10 years with $2.7 billion available

for the program.