French nuclear fuel spinoff New Areva said Wednesday that it had signed an agreement with China National Nuclear Corporation (CNNC) that establishes a framework for industrial and commercial cooperation focusing on nuclear fuel cycle activities. The company also said it remained in negotiation with CNNC concerning a capital investment that followed the example set by previously announced agreements with two investors.
The company said in early February that it had reached an accord with Japan Nuclear Fuel Ltd. and Mitsubishi Heavy Industries with the two taking a 10 percent stake in New Areva for $538 million.
New Areva is a spinoff from Areva, which is attempting a massive restructuring to overcome heavy losses in recent years. Much of the agreements are contingent on key developments, including the French regulator ASN's clearance of the Flamanville Unit 3 project, which is under a cloud of uncertainty after major steel components were found to have carbon concentration anomalies that could weaken the steel. The other major contingency is that European Commission anti-trust regulators approve of the deal in which 85 percent state owned Electricite de France (EDF) takes over Areva's nuclear reactor business.
According to a Reuters report, Areva – what remains of the company – would remain responsible for the long-delayed Olkiluoto, Finland, reactor project and for damages caused by a documentation problem at Areva's Le Creusot forge, which came under increased scrutiny after the Flamanville Unit 3 anomalies were found.
Areva said Wednesday that the terms of cooperation with CNNC were signed in Beijing in the presence of the Prime Minister of the Republic of China Li Kegiang and the Prime Minster of France Bernard Cazeneuve.
“This agreement is a key step in the deepening of the civil nuclear energy cooperation between France and China, and aligns with the expectations set by the two governments in their Joint Statement on Civil Nuclear Cooperation of June 30, 2015,” Areva said.