Orano, KHNP expand cooperation in uranium enrichment

The letter of intent - signed at the Elysee Palace in Paris during a state visit by South Korean President Lee Jae Myung - builds on the memorandum of understanding on global and mutual cooperation in the nuclear fuel cycle signed between Korea Hydro & Nuclear Power (KHNP) and Orano during French President Emmanuel Macron's visit to South Korea in April.

"In particular, the signing of the letter of intent in the presence of both leaders is significant as it reflects the strong interest shared by South Korea and France in nuclear energy and the nuclear fuel supply chain, and further strengthens strategic cooperation beyond the corporate level," Orano said.

Under the letter of intent, Orano and KHNP - which has held 2.5% of Orano's Georges Besse 2 enrichment plant in France since mid-2009 - are preparing to deepen their ties, further strengthening cooperation between the two companies in the front end of the nuclear fuel cycle. KHNP said it expects to expand its access to new Western enrichment sources and further diversify its nuclear fuel supply chain, while Orano said it expects to strengthen the foundation of its new enrichment projects.

"Amid growing uncertainty in the global nuclear fuel market, it is critical to proactively secure reliable sources of supply," said KHNP CEO Kim Hoe-chun. "This LOI (letter of intent) will serve as an important opportunity to expand cooperation between the two companies and further strengthen the stability of our nuclear fuel supply."

Claude Imauven, Chairman of the Board of Directors of Orano, said: "This cooperation with KHNP represents an important opportunity to further strengthen the relationship between the two companies. We look forward to continuing our cooperation in the front end of the nuclear fuel cycle."

KHNP operates 26 reactors, generating about one-third of South Korea's electricity.

According to World Nuclear Association information, South Korea has always had an open fuel cycle, without enrichment or reprocessing, due to the terms of its 1973 nuclear cooperation agreement with the USA. This agreement was renewed in June 2015. The country sources uranium for fuel from Kazakhstan, Canada, Australia, Niger and elsewhere - about 4700 tU per year. Tenex, Urenco, Centrus and Orano have supplied enrichment services. In mid-2007, KHNP signed a long-term EUR1 billion contract with Areva NC (now Orano) for enrichment services at the Georges Besse II plant.