China : AREVA strengthens its partnership with CGNPC
October 07, 2008
During its recent visit in China, Anne Lauvergeon, Chairman of the board of directors of AREVA, signed two agreements in the Hall of the National Assembly in the presence of Zhang Guobao, President of the National Energy Administration (NEA). These agreements reinforce AREVA’s strategic partnership with China and the Chinese electricity utility, CGNPC (China Guandong Nuclear Power Company).
Under the terms of the first agreement, 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 the development of its activities.
The second agreement concerns nuclear power plants. AREVA and CGNPC have decided to create a joint venture (held 55% by Chinese interests, 45% by AREVA) charged with the engineering and procurement of second and third generation power plants (CPR 1000, EPR). This organisation, initially dedicated to CGNPC’s projects in China, will subsequently be in a position to contribute to joint projects abroad.
Zhang Guobao, Vice-President of the National Development and Reform Commission and President of the NEA said, "This event is a very important step for both these organisations in the field of nuclear cooperation. These two agreements enable the broadening and deepening of nuclear cooperation. It brings both parties into a new stage of cooperation."
Qian Zhimin, the Chairman of CGNPC stated: "These agreements are key for our company. One secures the supply of uranium for our nuclear power plants until 2022 and allows us to lean on a market leader whose industrial expertise and environmental, social and corporate standards are recognised worldwide. The other affirms our long term technological cooperation with AREVA in the joint development of nuclear power station projects."
For her part, Anne Lauvergeon stated: "These two industrial agreements demonstrate the dynamic nature of our strategic partnership, which now exists for the very long term. It also illustrates the relevance of AREVA’s integrated model. The purchase of a Chinese stake in the capital of Uramin’s holding company leaves the organisation of the mining operations in each country unchanged, while securing an important sales channel. I also wish long life to the first joint engineering and nuclear services procurement company in China. It will enable the sharing and concentration of necessary competencies and resources for the construction of second and third generation nuclear power plants."
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