Recycling of nuclear fuel, outside of helping remove the waste problem, greatly increases your energy reserves.
However, it got essentially scuttled in the name of war as control over access to nuclear technology, even for purely peaceful uses became the dominant doctrine.
No, it was scuttled because it made no economic sense. In the US, Carter's executive order was lifted a few years later by Reagan, but no civilian reprocessing occurred. Separated plutonium has negative value -- it adds more cost to fuel element manufacture than it saves in enriched uranium cost.
However, it got essentially scuttled in the name of war as control over access to nuclear technology, even for purely peaceful uses became the dominant doctrine.