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

Press release

June 11, 2008

AREVA CEO Anne Lauvergeon and KAZATOMPROM President Moukhtar Dzhakishev today 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 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 tons/year 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 parties also agreed to develop KATCO’s social involvement in the region the company is located.

Moukhtar Dzhakishev said that “the signing came as a result of a 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”.

Anne Lauvergeon commented: “with this strategic deal, both our companies become privileged partners. It will help diversify our fuel reserves and secure supplies for our customers. Likewise Niger and Canada, Kazakhstan becomes one of our three main partner countries for uranium production.”