EXECUTIVE SUMMARYThis report, prepared for the Office of Safeguards and Security of the Department of Energy, addresses safeguards issues relevant to materials accountancy and International Atomic Energy Agency (IAEA) verification activities at a modern mixed-oxide (MOX) fuel fabrication facility under IAEA safeguards. This work is an extension of an earlier study done by the Safeguards Systems Group at the Los Alamos National Laboratory during FY'85 under the sponsorship of the U.S. Arms Control and Disarmament Agency. The earlier study was limited to identifying key elements of IAEA safeguards at a modern MOX fuel fabrication facility that could detect abrupt diversions. The present work addresses several issues of primary importance to materials accountancy and IAEA verification of the operator's materials balances and physical inventories.This MOX fuel fabrication plant is a bulk-handling facility where large quantities of plutonium are handled in chemical forms that are easily separated and converted into materials directly useful for nuclear explosives. Several IAEA member states are adopting state-of-the-art fuel-cycle technologies in newly constructed MOX fuel fabrication facilities. The facility design considered here is intended to enhance safeguards effectiveness at such a facility; it incorporates new technologies, remote/automated process operations, and features to augment near-real-time materials accountancy. This reference facility is a large-throughput plant (2.2 Mt Pu/yr) with extensive storage facilities for both feed materials and products. The two process lines at the plant can produce fuel assemblies for both fast breeder reactors (FBRs) and advanced thermal light-water reactors (ATRs).In this report, a detailed process design is presented, along with the analysis results of materials accountancy based on both abrupt and protracted diversion scenarios. Appendixes A through D discuss assumptions and methods used in our analyses. In addition, we present sampling plans for IAEA attributes/variables verification and calculations of a /K/{TTp*_r\y wnere MUF is an incomplete MUF (materials unaccounted for), and of corresponding detection probabilities for specified material-loss scenarios and two IAEA resource allocations. Although generic aspects of (MUF-D) have been discussed in the literature, to our knowledge no detailed simulation illustrating (MUF-D) behavior (as described in Appendix D) has been undertaken.A detailed analysis of the detection sensitivity of materials accountancy was conducted; the variance contributions for the operator's monthly materials balance closings at the process materials balance area (MBA) have a standard! deviation of l.*^6 kg of plutonium, which represent about 0.8% of the throughput or about 0.2% of the plutonium inventory during steady-state operation. Current practices at some fuel fabrication facilities, where the facility operators use results of high-quality chemical analyses of fuel pellets in accounting for fuel pins and fuel assemblies, would show a mor...