Areva, French supplier of nuclear power products, reported Friday a loss of €2.4 billion ($3.2 billion) in 2011. The company said a primary cause of the losses was related to €1.45 billion ($1.92 billion) writedown on UraMin, a mining venture acquired in 2007 that has struggled with many of its projects.
However, the company also reported an increase in its backlog of orders by 3 percent last year to €45.6 billion ($60.3 billion), stating orders increased by seven percent during the last three months of the year.
"In a difficult context, the slight decline in revenue in 2011 demonstrates the robustness of Areva's integrated model, resting mainly on recurring business generated in relation to our customers' nuclear installed base, and benefiting from the development of our renewable energies operations," said CEO Luc Oursel.
According to a release, Areva is now dedicating all of their efforts to the deployment of the "Action 2016" strategic action plan that, according to Oursel, has already yielded positive results. There has been "an improvement in the cost structure of our operations, an increase in order intake, and the launch of several disposals of minority interests," he said.
An example of the action plan also occurred Friday, with Areva Resources Canada Inc. announcing in a release it has signed an agreement to sell its interest in the Millennium Canadian Mining Project to Cameco Corporation, by selling its 27.94 percent ownership to the already a 41.96 percent shareholder.
"This deal will help Areva generate cash for other strategic projects and position the company for future growth," said Vincent Martin, CEO of Areva Resources Canada Inc. "Areva remains firmly committed to its major mining and exploration projects in Canada and to maintaining a strong Canadian presence.”
The Millennium Project proposes an underground mine at a deposit in the eastern Athabasca basin estimated to hold over 50 million pounds of uranium.