Sept 30 (Reuters) - BWX Technologies BWXT.N said on Tuesday it has been awarded a 10-year contract valued at $1.6 billion by the National Nuclear Security Administration to help establish the supply of high purity depleted uranium, or HPDU, to be used for U.S. defense purposes.
Under the contract, the nuclear components maker will initiate requirements to build an HPDU manufacturing plant in Jonesborough, Tennessee, which will produce up to 300 metric tons of HPDU annually.
"This capability will supply the Y-12 National Security Complex (Y-12) with depleted uranium for production use and will ensure NNSA's ability to modernize and maintain the nuclear deterrent," the National Nuclear Security Administration said in a separate statement on Tuesday.
The Tennessee-based Y-12's primary mission is to support the Department of Energy's nuclear weapons stockpile maintenance program. It also provides the enriched uranium for the U.S. Navy's nuclear-powered submarines and aircraft carriers.
Earlier this month, the company secured a $1.5 billion contract from the semi-autonomous nuclear agency, part of the DOE, to develop a domestic uranium enrichment plant in Erwin, Tennessee.
In July, BWX secured a $2.6 billion order to manufacture naval nuclear reactor components.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Alan Barona)
((Aatreyee.Dasgupta@thomsonreuters.com))