October 9, 2008
Areva to Consolidate Chinese Operations, to Create JV With CGNPC
French nuclear engineering major Areva has signed two agreements to strengthen its activities in China and to create a joint venture with the China Guandong Nuclear Power Company, which is responsible for the engineering and procurement of second and third-generation nuclear power plants in China.
Under the terms of the first agreement, the China Guandong Nuclear Power Company (CGNPC) and Chinese sovereign wealth funds will take a 49% stake in the equity of UraMin, a mining company currently wholly owned by the Areva group, which remains the operator of UraMin's current and future projects.This agreement provides CGNPC with guaranteed access to more than half of the total production of UraMin, thus securing the marketing of UraMin's future production. For its part, Areva now benefits from additional means of financing for the development of its activities.
The second agreement concerns nuclear power plants in China. Areva and CGNPC have decided to create a joint venture (JV) responsible for the engineering and procurement of second and third-generation power plants. This JV, initially dedicated to CGNPC's projects in China, will subsequently be in a position to contribute to joint projects abroad.