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BUSINESS OVERVIEW

06

6.4 Operations

These optimizations help minimize the environmental footprint of the group’s

operations and contribute to the company’s economic performance: in 2016, they

resulted in a reduction of operating expenses for waste management in relation

to 2015.

OPTIMIZATION AND INNOVATION

Innovation is a key to adapting existing waste management methods for improved

overall performance, just as it is central to the creation of new or more effective

waste management methods.

AREVA is in the process of expanding its current range of waste packages based

on the use of vitrification, cementation, encapsulation, compaction and other

technologies.

In particular, AREVA is developing an innovative alternative to existing incineration/

fusion/vitrification processes called PIVIC aimed at processing and packaging

alpha-contaminated metal waste containing organics in a single stage. More

than 140,000 metric tons of metal materials could be recovered and recycled

in connection with the dismantling of the Georges Besse enrichment plant.

AREVA continues studies on the feasibility of melting to decontaminate these

materials, which could result in activity levels which are below radiation protection

thresholds, allowing them to be recycled. The optimization of waste management

methods is a major subject being evaluated under the PNGMDR. AREVA is fully

committed to implementing this Plan and continues its activities aimed in particular

at strengthening the overall cohesiveness of management methods for all of its

operations.

In addition, AREVA is pursuing innovative development work for the management

of special waste, such as mercury or magnesium waste.

AREVA, EDF and the CEA continued their cooperation with Andra in 2016 on

technical and economic optimization of the Cigéo project for long-livedmedium- and

high-level waste disposal. The majority of the waste to be sent to Cigéo is processed

and packaged by AREVA.

HUMAN AND INDUSTRIAL RESOURCES

AREVA has considerable experience in the management of all waste categories,

from the lowest level to the highest level, and thus has all of the related operational

skills and R&D resources. All of the group’s operations are concerned by the

optimization of waste management, meaning all of its business units. For its

implementation, AREVA draws on:

p

the operating entities of the different production or mining sites;

p

the Dismantling and Waste Contracting Authority (see Section 6.4.1.4.1.).

6.4.1.4.

OTHER NEWCO OPERATIONS

The other operations of NewCo combine the other cross-business functions,

including the Dismantling and Waste Contracting Department, AREVA Projects

and AREVA Med.

Key figures

2016

2015

Revenue*

(in millions of euros)

13

29

Operating income

(in millions of euros)

34

(200)

Workforce at year end**

2,475

3,286

* Contribution to consolidated revenue.

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

Employees.

6.4.1.4.1.

Dismantling and waste contracting department

End-of-lifecycle operations (ELO) are crucial to the group’s operating, financial

and commercial performance. They include facility dismantling, legacy waste

retrieval and packaging, and the definition and implementation of comprehensive

management methods for our existing and future waste. Demonstrating its

unwavering commitment to sustainable nuclear power, the group implements these

operations, plans for them, and sets up provisions to cover the related expenses

over the long term. In accordance with the law, AREVA earmarks the necessary

assets to cover these provisions exclusively.

The operational and financial challenges associated with ELO aremajor ones for the

group. Accordingly, and in view of the cross-business nature of the related activities,

the Dismantling and Waste Contracting Department (DWCD) reports directly to

Management. It is responsible for all ELO-related projects and steers performance

in the management of radioactive substances for the entire group. Its missions are

divided into five key areas:

p

serving as the contracting organization for ELO, the DWCD proposes a strategy,

has it approved, and ensures the overall consistency of all of the group’s activities

in this regard. The DWCD is responsible for the implementation of the related

projects (excluding post-mining projects), in compliance with safety, cost,

schedule and quality objectives. It draws on project management organizations

which are, depending on the project, the operations of the Front End of the cycle,

of the Back End (Dismantling and Services, Recycling, Nuclear Logistics) and

AREVA Projects;

p

ensuring centralized management of end-of-lifecycle provisions in compliance

with internal control provisions for end-of-lifecycle obligations and the group’s

financial trajectory;

p

consolidating and developing safe and effective radioactive waste management

methods. The DWCD’s mission is to ensure, in connection with the operating

and functional entities concerned (including R&D and Innovation), the overall

consistency of solutions and management methods used or proposed in

order to achieve an overall management system which has been optimized

both technically and economically (see information in Section 6.4.1.3.4.

Waste

management methods);

p

coordinating radioactive waste and materials management operations. The

DWCD’s objective is to boost the performance of operational methods by

coordinating actions to promote synergy and performance; providing technical

and contractual management of shipping and storage projects; providing support

for operating safety and regulatory compliance; and ensuring the leadership of

the internal network of waste coordinators;

p

positioning our solutions and methods with external stakeholders. The DWCD

coordinates AREVA’s contributions to the French National Radioactive Waste

and Materials Plan (PNGMDR) and implementation of the related regulatory

requirements. Capitalizing on its know-how and the solutions developed

78

2016 AREVA

REFERENCE DOCUMENT