AREVA and KAZATOMPROM sign a strategic agreement in the front end of the nuclear cycle.

Today, June 11, 2008, AREVA CEO Anne Lauvergeon and KAZATOMPROM President Moukhtar Dzhakishev signed in Paris an agreement protocol to strengthen their partnership.

Under the terms of the protocol, KATCO, a 51/49% joint venture between AREVA and KAZATOMPROM, should produce 4000 tons of uranium per year until 2039, sales of which will be made entirely by AREVA.

The group will also provide engineering assistance to build fuel fabrication lines with an annual capacity of 1200 tons in KAZATOMPROM’s metallurgy plant in Ulba. In the framework of a company jointly owned by KAZATOMPROM (51%) and AREVA (49%), the installation will include a dedicated 400-ton line whose fuel pellets will be supplied by KAZATOMPROM. Its production will be sold via a company owned jointly by AREVA (51%) and KAZATOMPROM (49%). The remaining 800-tons capacity will provide fuel for reactors of other design.

The Parties also agreed to increase the financing of the social sphere by KATCO JV.

Anne Lauvergeon commented: “with this deal, both our companies become privileged partners. It helps diversify our fuel reserves and secure supplies for our customers.” 

Moukhtar Dzhakishev said that “the signing came as a result of  constructive long term relationship between Kazatomprom and Areva and is, for us a milestone in establishing a vertically integrated company, producing a value added product – fuel assemblies”.

The group executives should sign the final version of the agreements in September 2008.