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BUSINESS OVERVIEW

06

6.4 Operations

Site monitoring continues after rehabilitation, in particular checks of air quality,

surface water and groundwater quality, bio-indicators and the food chain. The

monitoring provided under the mining sites’ post-closure management plans is

of variable duration, depending on the pace of improvement and the stabilization

of chemical and radiological parameters. These plans are discussed with national

administrations and local stakeholders. This period is specific to each site’s

characteristics as well as to the expectations of local stakeholders. Experience to

date indicates that this period is generally not less than ten years. For sites located

in emerging countries and/or countries where there are strong expectations for

local economic support, AREVA also leads societal initiatives designed to generate

income and create jobs for communities affected by mine closures.

Relations with customers and suppliers

The backlog amounted to 9.480 billion euros at the end of 2016. This backlog

continues to be diversified among customers in different uranium-consuming

regions.

Suppliers

The uranium sold comes from the mineral resources of the companies in which

AREVA has an equity interest, or from uranium bought on the market.

Development outlook and challenges

In a post-Fukushima environment, and despite a slower pace of growth in demand,

AREVA intends to remain a key supplier of natural uranium. Its objective is to

continue to optimize the competitiveness of its existing sites and to maintain its

portfolio of projects by conducting the necessary studies in order to be able to

launch new capital expenditure when market prices permit.

In this way, AREVA intends to strengthen its position in the uranium market while

remaining one of the most competitive producers.

6.4.1.2.

FRONT END

Key figures

2016

2015

Revenue*

(in millions of euros)

1,025

1,097

Operating income

(in millions of euros)

158

101

Workforce at year end**

2,807

3,012

* Contribution to consolidated revenue.

** Workforce consistent with the breakdown by operation shown in Chapter 17,

Employees.

Businesses

Conversion of natural uranium (U

3

O

8

) into uranium hexafluoride

(UF

6

)

The principal business of the Chemistry operations is to convert natural uranium

into uranium hexafluoride. All enrichment processes – the stage after conversion

in the fuel cycle – currently function with uranium in the chemical form of UF

6

.

Uranium concentrates shipped from the mine for conversion are owned by the

electric utility customer. They are converted in a two-stage process:

p

in the first stage, the uranium is converted into uranium tetrafluoride (UF

4

).

This involves dissolving the mine concentrates in acid, then purifying them to

produce UO

3

powder. This powder is then hydro-fluorinated with hydrofluoric

acid, converting it into UF

4

. These operations are carried out in AREVA’s plant

at the Malvési site in the Aude department of France;

p

in the second stage, the UF

4

is converted by fluorination into uraniumhexafluoride

(UF

6

), a chemical compound that exists in gaseous form at relatively low

temperature. The fluorine used in this process is produced through electrolysis

of anhydrous hydrofluoric acid. These operations are carried out in AREVA’s

plant at the Tricastin site in the Drôme and Vaucluse departments of France.

U0

3

(gas at 56 °C

and atmospheric

pressure)

Malvési

Pierrelatte

Hydrofluorination*

(HF)

Fluorination*

(F)

(HF electrolysis*)

Acid

Dissolution*

Purification

and effluent

management

UF

4

UF

4

UF

6

(powder)

(powder)

(powder)

(powder)

Mine

concentrates

* Purely chemical operations (no change to the uranium’s isotopic composition).

Source:AREVA.

Enrichment of natural uranium in uranium-235

Enrichment operations consist of increasing the uranium-235 content of natural

uranium from its initial 0.7% to the assay specified by the customer, ranging from

3 to 5%, depending on the type and operating mode of the reactor. Molecules of

gaseous uranium hexafluoride (UF

6

) undergo isotopic separation to achieve the

desired enrichment assay. AREVA supplies the enrichment service to the customer,

with the latter retaining ownership of its material.

An enrichment plant’s production is expressed in separative work units (SWU).

This unit is proportional to the quantity of uranium processed and is a measure

of the work required to separate the fissile uranium-235 isotope. The SWU is a

standard international unit of measurement for enrichment services and sales, and

is independent of the separation technology used.

Implementation of a new, more efficient enrichment technology

that uses less energy

Following the shut-down of Eurodif’s gaseous diffusion enrichment plant in 2012,

AREVA invested in the new Georges Besse II plant and has now deployed the

centrifuge enrichment technology, whichmeets increasingly stringent nuclear safety,

environmental protection and competitiveness requirements.

By using this new technology, the Georges Besse II plant consumes 50 times less

electricity than that consumed by the gaseous diffusion process. Another advantage

is its modular construction, enabling rapid ramp-up of production and adjustment

of production capacity to market demand.

70

2016 AREVA

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