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International Cooperation in the Nuclear Fuel Market as a factor of increasing the Security of Supply

Moscow, 2009

Contents

I. Our vision of global prospects

II. Security of nuclear fuel supply

III. Proposals on international cooperation

I. Our vision of global prospects

1

Large-scale plans on nuclear power generation development

•China – six-fold by 2020

•India – five-fold by 2020

• more than 50 new countries are willing ….to build NPP’s

Financial crisis• Lack of internal investment resources due to fall of Uranium prices

• Limited access to external credit resources

Growth of demand for uranium, SWU and fabrication services

Disbalance of demand and supply of nuclear fuel cycle services

Need for security of nuclear fuel supply

Risks of failures in the supply chain

Global Prospects

Correction of uranium mines, enrichment and fabrication

capacities development plans

II. Security of nuclear fuel supply

2

Package supply1.

No additional expenses for utility related to separate contracting

(additional personnel, logistics expenses, etc.)

Transfer of risks of uranium and SWU procurement and of change in commercial terms of procurement when switching to new fuel, to the FA

supplier

Opportunity for the utility to get cumulative discounts

Uranium + conversion + enrichment + fabrication

3

State Corporation «Rosatom»

JSC «Atomenergoprom»

JSC «Atomredmedzoloto»

JSC «TENEX» Concern «Energoatom»

JSC «MSZ»Electrostal

JSC «NCCP»Novosibirsk

JSC «ChMP»Glazov

NPP

NPP

..…

Uranium mining

Conversion and enrichment

JSC «TVEL»

Fabrication NPP operation

JSC «MZP»Moscow

Vertical Integration2.

VNIINMMoscow

4

Backup enterprises

«Mashinostroitelny Zavod» (MSZ)

Electrostal, Moscow region: 1. Fabrication of fuel for power reactors of Russian design. 2. Fabrication of fuel for PWR and BWR reactors in Western Europe. . 3. Fabrication of fuel for research reactors.

«Novosibirsk Chemical Concentrates Plant» (NCCP)

Novosibirsk:1. Fabrication of fuel for power reactors of

Russian design. 2. Fabrication of fuel for PWR reactors in

Western Europe and USA (TVS-K). 3. Fabrication of fuel for research reactors.

3.

Total capacity(in pellets)

1800 THM/year

5

Fuel for reactors of Russian design (VVER, RBMK)

Fuel for Fast Reactors

Fuel components (pellets)VVER, PWR, BWR, PHWR

Fuel for reactors of Western design(PWR, BWR)

RepU feed material Natural uranium

Competences in fabrication of different types of nuclear fuel

4.

Own FA design for PWR 17х17

(TVS-K)

RepU Fuel (in cooperation with AREVA)

III. Proposals on international cooperation

6

Nuclear fuel fabrication Joint Ventures

International regional fabrication center at NCCP

Regional plant on FA assembly in the partner’s

country

Proposals

Inter-regional level Local level

Pellets(optional)

7

IRFCOn the basis

of NCCP

Current and future NPP operators

Inputs of the partiesCurrent activityOutcome

TVEL

•Production capacities•Competences

Package FA

Original technologies of nuclear fuel fabrication

• Orders for 2-3 reloads/year for maintaining the competence,

• Components (optional)

Other fabricators

Competences

International regional nuclear fuel fabrication center (IRFC) at NCCP – closing the ICUE

1.

ICUE EUP

Fabrication technologies renewal

Security-of-Supply

Bank of technologies

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Advantages of IRFC

Secured EUP Proximity to South-East Asia markets

Higher resistance to country-related risks

Development of nuclear fuel fabrication technologies

Higher resistance to industrial risks

9

Regional plant – partner choosing criteria

Significant reactor park (8 and more units)

Adherence to Russian reactor and fuel technologies

Proximity to new nuclear fuel markets

Long-term contracts for nuclear fuel supply aimed at return on

investment

Regionalplant

2.

10

Regional plant

Regionalplant

TVEL

•Pellets•Zr- parts (optional)

•Technology renewal•Service,•Training

Package supply

Insurance of supply

•National utilities;•Utilities in other countries

Parties’ contributionsCurrent activityOutcome

Is formed on the partnership basis of JV

•Equipment•Fabrication technology

•FA fabrication(from pellets to FA)

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Advantages of a Regional Plant

Scientific and technical efficiency

Economic efficiency

Fuel supply to utilities domestically and abroad within the

region

Guaranteed obtaining new designs

Transfer of vertical integration advantages

for the partner’s country

Guaranteed EUP

Guaranteed components and

pellets (as an option)Simplifying the issues

of licensing new nuclear fuel as far as the plant is located in the same country as

NPP

More than five countries have shown interest in the project

«Regional plant»

We invite all interested partiesto cooperation!

JSC «TVEL» «Atomexpo», 2009