Japan OK helps nuclear reprocessing, not new reactor

* J-Power not to resume work on its 1st nuclear plant

* JNFL says to resume final test on critical part mid-Jan

By Risa Maeda

TOKYO, Dec 27 (Reuters) - A local Japanese government approval of safety measures at nuclear facilites this week has given a boost to Japan's first atomic reprocessing plant but failed to spur power wholesaler J-Power to resume construction of its first reactor.

Shingo Mimura, governor of Aomori, said on Monday he had approved new safety measures by five nuclear-related companies in the prefecture, including J-Power and Japan Nuclear Fuel Ltd (JNFL), operator of the Rokkasho nuclear reprocessing plant, which is now operating on a test basis.

JNFL said on Tuesday it would start a final test on the most technically difficult part of its nuclear reprocessing plant around mid-January, aiming to start commercial operation of the plant in October 2012 as planned.

But J-Power said it was still considering when to resume construction work at its first nuclear plant in Ohma as the central government maintains reassessments of its safety regulations.

"We'll take Aomori governor's comments sincerely and implement proper safety steps if necessary to make the plant a safer one," a J-Power spokesman said.

Despite the halt, J-Power, formally known as Electric Power Development Co, has not changed its schedule to start commercial operation of the 1,383 megawatt Ohma plant in November 2014, the spokesman added.

Prime Minister Yoshihiko Noda has said that nuclear power could play a role in Japan for decades, with measures to improve safety, after the March 11 disaster triggered the world's worst radioactive material leakage in the Fukushima Daiichi plant.

It is yet unclear, however, whether Japan's post-Fukushima energy policy, which is to be finalised next summer, will change a previous plan to turn spent fuel into mixed-oxide fuel, or MOX.

Tokyo had expected the Rokkasho reprocessing plant to reduce the current reliance on France and Britain in the country's back-end nuclear fuel cycle and address a possible shortage of interim storage places for spent fuel from the 10 nuclear power generators. (Additional reporting by Osamu Tsukimori, editing by Jane Baird)