Areva - Reference Document 2016
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BUSINESS OVERVIEW
6.4 Operations
6.4.
OPERATIONS
6.4.1. NEWCO’S OPERATIONS
Businesses The group’s mining operations involve uranium, a metal which in its natural state contains two main isotopes: more than 99% is non-fissile uranium-238, while fissile uranium-235 accounts for 0.7%. The latter is used after enrichment to make fuel for nuclear reactors. The company holds the AREVA group’s key interests in mining operations in the following key operating businesses: p operations: extraction of uranium ore using various mining techniques, and ore processing (chemical concentration of natural uranium); p site rehabilitation after operations: rehabilitation of mine sites following applicable environmental standards. AREVA Mines is in charge of marketing the uranium extracted by the mining companies. Mining operations cover long cycles requiring substantial capital expenditure over several years before mining operations themselves begin, the first deliveries of uraniumaremade and the first income is received. Then cash flow increases before once again falling off in the final years of operation, followed by rehabilitation of the sites operated. p exploration: seeking new deposits for the future; p mining projects: mine development and construction;
Refocused on all of the nuclear fuel cycle operations, New AREVA Holding, temporarily called “NewCo”, operates in Mining, in the Front End, in the Back End of the Cycle and in other areas. Pursuant to the IFRS 5 accounting standard, these operations are consolidated in “operations sold, discontinued or held for sale” due to the loss of AREVA SA’s control of NewCo once the capital increase of the latter has been carried out, and therefore no longer contribute to the key financial indicators reported by the group.
MINING
6.4.1.1.
Key figures
2016
2015
Revenue* (in millions of euros)
1,451
1,447
183
183
Operating income (in millions of euros)
Workforce at year end**
3,449
3,536
* Contribution to consolidated revenue. ** Workforce consistent with the breakdown by operation shown in Chapter 17, Employees.
BUSINESS MODEL OF A URANIUM DEPOSIT, FROM EXPLORATION TO MINING FEASIBILITY*
Cost ~ 50 million euros
(reserves) Feasibility Deposit
Development drilling
Pre-feasibility Deposit
(resources)
Soil geophysics detailed geochemistry
Test driling
Evidence
Aerial geophysics Geochemistry and geology
Detailed exploration
Large mesh exploration
Anomalies
Time
Exploration permit 6
9
12
3
~ 15 years
Concession or mining agreement
* Duration given for information purposes only; may vary considerably depending on context. Source:AREVA.
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2016 AREVA REFERENCE DOCUMENT
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