EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Description of the Group's activities

STAGES OF THE NUCLEAR FUEL CYCLE IN FRANCE:

1.

With manufacturers in the nuclear industry meeting within the World Nuclear Association (WNA), which brings together among others companies representing 90% of worldwide uranium production, EDF is making sure to implement best practices in mineral extraction so as to contribute to making overall progress in this sector. Since 2011, EDF has been periodically conducting mine audits based on a method drawn in collaboration with the WNA, which constitutes a standardised framework recognised by all stakeholders in the sector. Recommendations may be made, together with an improvement plan if necessary. These principles defined by the WNA aim to perpetuate the best practices observed on the field and share them with all sector stakeholders; they notably reassert the principles defined by the International Council on Mining and Metals for sustainable extraction and use of uranium (1) . The clauses listing EDF’s expectations in terms of enforcement of the fundamental rights and main international standards by suppliers and sub-contractors have progressively been inserted in contracts signed by EDF. In particular, they stress transparency and EDF’s faculty to come and audit the supplier. Fluorination (or conversion) EDF’s needs are covered by the AREVA NC-Orano group, as well as other international producers such as Cameco in Canada, Converdyn in the United States and Tenex in Russia. In 2016 EDF signed a conversion services supply contract with AREVA-Orano to enhance coverage of its long-term needs.

Upstream To ensure the continuity and security of the supply of its reactors in France and the UK, EDF retains overall control of all operations at each stage of the cycle, through a portfolio of contacts and by stockpiling at different stages of the front-end stage of the fuel cycle (natural uranium, fluorinated enriched or unenriched uranium, and warehousing of new assemblies). AREVA-Orano is in this respect an important supplier (see section 2.3 “Dependency factors”). Where necessary, the Group implements a strategy of currency hedging for its uranium supplies. uranium supply EDF’s uranium supplies are guaranteed by long-term contracts for periods of 7 to 20 years with a policy of diversification in terms of sources and suppliers. In 2017, EDF continued the securing of its long-term supplies with a number of major market suppliers, including AREVA Mines-Orano. Indexation formulas for portfolio contracts of natural uranium supply include fixed prices (base prices whether inflated or not) and variable prices (indexed according to market price indexes) and are sometimes limited by floor and ceiling prices. Consequently, the effects of fluctuations in market prices of natural uranium on supply costs are limited.

These ten principles concern the health of workers and local populations (safety and protection against radiation and emissions); environmental preservation (waste management (1) and protection of drinking water resources); the need for a legal framework in accordance with current legislation and international standards (AIEA) to monitor and manage radiation, health and safety for stakeholders and the general public, waste management and environmental protection; information, transparency and dialogue with stakeholders; responsible management of hazardous waste and contaminated materials by using the best available technologies; the development of a quality management system upstream of the project (Environmental impact study) including risk analysis; accident management preparation; transport of hazardous waste in complete safety and security; regular staff training.

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DF I Reference Document 2017