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BUSINESS OVERVIEW
06
6.4 Operations
6.4.
OPERATIONS
6.4.1.
NEWCO’S OPERATIONS
Refocused on all of the nuclear fuel cycle operations, New AREVA Holding,
temporarily called “NewCo”, operates in Mining, in the Front End, in the Back End
of the Cycle and in other areas. Pursuant to the IFRS 5 accounting standard, these
operations are consolidated in “operations sold, discontinued or held for sale”
due to the loss of AREVA SA’s control of NewCo once the capital increase of the
latter has been carried out, and therefore no longer contribute to the key financial
indicators reported by the group.
6.4.1.1.
MINING
Key figures
2016
2015
Revenue*
(in millions of euros)
1,451
1,447
Operating income
(in millions of euros)
183
183
Workforce at year end**
3,449
3,536
* Contribution to consolidated revenue.
** Workforce consistent with the breakdown by operation shown in Chapter 17,
Employees.
Businesses
The group’s mining operations involve uranium, a metal which in its natural state
contains two main isotopes: more than 99% is non-fissile uranium-238, while fissile
uranium-235 accounts for 0.7%. The latter is used after enrichment to make fuel
for nuclear reactors.
The company holds the AREVA group’s key interests in mining operations in the
following key operating businesses:
p
exploration: seeking new deposits for the future;
p
mining projects: mine development and construction;
p
operations: extraction of uranium ore using various mining techniques, and ore
processing (chemical concentration of natural uranium);
p
site rehabilitation after operations: rehabilitation of mine sites following applicable
environmental standards.
AREVA Mines is in charge of marketing the uranium extracted by the mining
companies.
Mining operations cover long cycles requiring substantial capital expenditure over
several years before mining operations themselves begin, the first deliveries of
uraniumaremade and the first income is received. Then cash flow increases before
once again falling off in the final years of operation, followed by rehabilitation of
the sites operated.
BUSINESS MODEL OF A URANIUM DEPOSIT, FROM EXPLORATION TO MINING FEASIBILITY*
Cost
~ 50 million euros
Time
3
~ 15 years
Exploration permit
6
9
12
Concession or
mining agreement
(resources)
Large mesh
exploration
Detailed
exploration
Test driling
Development
drilling
Aerial geophysics
Geochemistry and geology
Soil geophysics
detailed geochemistry
Anomalies
Evidence
Pre-feasibility
Deposit
(reserves)
Feasibility
Deposit
* Duration given for information purposes only; may vary considerably depending on context.
Source:AREVA.
2016 AREVA
REFERENCE DOCUMENT
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