The nuclear option [Areva]: Virginia Business - News
Areva, an international supplier of nuclear equipment and services, is joining forces with Northrop Grumman Shipbuilding, the architect of the Navy’s nuclear-powered fleet, to build just such a plant in Newport News.
Groundbreaking on the $363 million project is scheduled for this month. In a year, more than 500 highly skilled workers are expected to begin making equipment to supply an anticipated global demand for new nuclear reactors. “We literally will make Virginia the leader in a revival of America’s nuclear-manufacturing capability,” promises the 47-year-old energy executive.
It seems like an improbable boast, but Rencheck may be on to something. America is undergoing a dramatic shift in regards to carbon emissions. Consequently, nuclear energy has regained its sex appeal after decades of being an ugly stepsister to coal and natural gas. Virginia is expected to remain a world supplier of pollution-emitting coal, but it’s also lining up the critical mass to become a serious player in a new nuclear market.
While this article makes it sound as though Areva is a Lynchburg-based business, Areva NP Inc. is a wholly-owned subsidiary of Areva NP S.A.S. based in Paris, France. But, if I understand correctly, Areva NP S.A.S. is itself a wholly-owned subsidiary of Areva SA, also based in Paris:
1. http://www.bloomberg.com/apps/quote?ticker=CEI%3AFP
2. http://www.neimagazine.com/BuyersGuideEntry.asp?companyId=8110&directory=nuclear
3. http://w1.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2009/corporate_communication/2009-q1/axx20090125.htm
4. http://www.areva-np.com/common/liblocal/docs/press/DP_RSA_VA_3_2008.pdf [PDF]
The latter PDF explains Areva's interest in South Africa, and they would be well-versed in this interest as they've had control in at least two mines near Arlit in Niger for about thirty-forty years.
The Akouta mine is the largest of its kind in the world, and another nearby mine is an open pit mine. Together, the mines produce about eight percent of the world's uranium. Uranium is Niger's top export, outside of onions.
A mill exists at Arlit as well, so the uranium leaves Arlit as yellowcake. It is packed loosely in drums and exported five hundred miles along what is known as "the Uranium Highway." The ore ends up in Benin, where it is transferred to freighters and shipped to France, where it is enriched into fuel pellets that serve 80 percent of French electrical needs.
"Though Niger is the fourth-largest producer of uranium in the world, it sees almost none of the wealth. Because of a long-standing contract, the French consortium* pays only 5.5 percent of its revenue in taxes, and most of it goes to subsidize elites in the dusty capital of Niamey. Almost three-quarters of the people cannot read, and those who survive to the age of forty-five are living on statistically borrowed time. Niger was recently named the most deprived country on earth by the United Nations, ranked dead last among the world's sovereign nations on a comprehensive scale called the Human Development Index, which charts life expectancy, education, and standard of living..."
* Though Areva is the dominant player in Nigeria, the smaller stakes in the mines also are held by corporate interests in Japan, Spain and Niger.
The above information and more are available in the book, "Uranium: War, Energy, and the Rock that Shaped the World," by Tom Zoellner. If you cannot get your hands on that book (published this year, 2009), then you still can find information about these mines, Areva and more on the Internet.
For instance:
In December 2008, The French state announced that it would sell a "chunk of nuclear giant Areva to Asian and Middle Eastern investors to help finance the future of a group considered a jewel in the country's industrial crown." The move would leave the French state with 75 percent of Areva, "a world leader in nuclear power with manufacturing facilities in 43 countries, down from its current 90 percent."
"France produces most of its electricity from nuclear power and President Nicolas Sarkozy has been active in trumpeting his country's know-how to win French companies new business abroad...Areva needs between eight and 10 billion euros by 2012 to fund its investment program, notably to develop its third-generation EPR nuclear reactor. It also needs an estimated two billion euros to buy out Siemens' stake in Areva NP, its reactor subsidiary." (Areva NP is the company located in Lynchburg - more about Siemens below)
http://www.google.com/hostednews/afp/article/ALeqM5gHU1vPOOOq4pzWqWUHsSxBhW2QRQ
Siemens AG joined Areva NP S.A.S. in a Franco-German joint venture around 2001 to combine their nuclear business activities. However, in January 2009, Siemens pulled out of the contract, citing "lack of exercising entrepreneurial influence" as the reason behind the move. Areva has been the majority partner, with 66 percent stake, and it will acquire Siemens' 34 percent of shares within three years.
http://w1.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2009/corporate_communication/2009-q1/axx20090125.htm
In turn, Areva just announced two days ago that it was opening its capital to new investors and would sell a subsidiary to raise money for massive investments in new nuclear technology. The Federal Union of Nuclear Trade Unions (UFSN CFDT) said it opposed the plan arguing that it was "a rampant privatisation of nuclear operations" since it would dilute the state's share.
Areva needs between eight billion and 10 billion euros (11.2 billion and 14.0 billion dollars) by 2012 to fund its investment program, notably to develop its third-generation EPR nuclear reactor. The company also needs an estimated two billion euros to buy out Siemens' stake in Areva NP, its reactor subsidiary.
http://www.google.com/hostednews/afp/article/ALeqM5i7L4s3lyWXxYV0rTTNpBou6r7Jeg
In other words, it appears Areva is in deep financial doings, and ownership of the company is being diluted from a state-run operation to privatization - a movement that seems to annoy the French government.
While financial doings are deep (albeit perhaps not troublesome, depending on the availability of investors), the climate in Africa poses some problems:
"After a visit in late March from French President Nicholas Sarkozy to Niger, residents in the uranium-exporting desert country continue questioning whether AREVA, a company primarily owned by the French government, will honour its promise to protect communities from mining hazards."
http://www.irinnews.org/Report.aspx?ReportId=83706
That link is worth a read, especially for the images of an open pit mine and for the problems that Areva faces with this mine regarding air, water, government responsibility and more. The point to remember with the mines in Africa when comparing them to other mines is the environment. Africa's environment is not "wet," so the above-ground issues may vary from those that Virginians will encounter with their open pit mine.
On the other side of that coin, Areva faces problems with water shortages in its mining and milling processes.
For an anti-uranium mining perspective on Areva and the U.S., please read Linda Gunter's article, "The French Nuclear Industry Is Bad Enough in France; Let's Not Expand It to the U.S."
http://www.environment.co.za/topic.asp?TOPIC_ID=2278
For a pro-uranium mining perspective, read Mike Cohen's opinion, portions of which are copied at Virginia Energy Independence Alliance.
NOTE: Mike Cohen is with Northrop Grumman Shipbuilding, a company that also is noted in the quote at the top of the page.
Areva in Lynchburg has provided great jobs for Virginians, but they also import engineers and other top workers from other countries, including France and Germany (although the latter country may not provide employees depending on the relationship with Siemens).
Areva also seems to be involved in community affairs and college education. While I am not stating that corporate involvement in community and education is a 'bad' thing, I've also been taught to consider the source in any statement or action.
Comments to enlighten are welcome.
