Areva offers NPCIL stake in enrichment unit

Global nuclear power major Areva is open to giving a minority stake in its uranium enrichment plant — one of the largest industrial investment projects currently underway in France — to Nuclear Power Corporation of India (NPCIL). Though a formal offer has not yet been made, a senior Areva executive said the two companies have held informal discussions on the proposal.

The French company is offering NPCIL participation in a number of uranium projects, though this would be independent of the agreements it is negotiating for two EPR reactors. “The new enrichment plant in France, which has a project cost of Rs 3 billion, offers an opportunity for minor shareholding,” Arthur de Montalembert, chairman & managing director, Areva India, told Business Standard.

Japanese and Korean companies have shown interest in the plant that was inaugurated earlier this week. “If (NPCIL) is interested, it can take equity. We have had an informal exchange on that. NPCIL is aware of the opportunity, though no formal offer has been made.”

De Montalembert, though, clarified that the opportunity for investment in the Georges Besse-II enrichment plant, situated in the south of France, and the company’s uranium mines was not related to the sale of EPR reactors. “Our priority is developing the Jaitapur project and signing the contracts. Investment in fuel cycle, from mining to enrichment, is different,” he added.

The French company is likely to sign a dozen or so agreements with government-owned NPCIL for the Jaitapur nuclear power plant in Maharashtra. “We will be able to sign the final contracts within the next six months. These will include contracts for equipment, services, engineering, fuel and fuel services,” said De Montalembert.

Areva follows a model that gives its customers a stake in mines that it operates in countries like Canada, Kazakhstan, Niger and Jordan. “Our partners are customers who want to secure future supply, in addition to contracts, by becoming part investors.”

Even during the inauguration of the second stage of its enrichment plant in France on Tuesday, more than 100 customers from 14 countries were present. The plant, which will enhance Areva’s share in the enrichment market to 25 per cent, will be fully operational by 2016.

Reactor reaction
Areva’s European pressurised reactors (EPRs), which are planned for the Jaitapur N-plant and have come in for criticism for not being tried and tested, use advanced technology based on a previous generation of reactors, Areva India CMD Arthur de Montalembert has said. The first EPR reactor in Finland is due for loading in two years. Stating that the delay in commissioning that reactor was on account of the absence of a supply chain, he said, “India does not face this problem.”