nuclear-news

French state faces quandary with Areva

International Herald Tribune

By Marie Maitre Reuters

March 16, 2009

The French state faces a multibillion euro funding shortfall at the nuclear power company, Areva, and needs to take bold steps to keep it at the forefront of a global revival in nuclear power.

The government could raise hundreds of millions of euros by selling Areva’s financial investments or bringing in new investors, people with direct knowledge of the matter say.

But analysts said that such moves would not suffice to finance Areva’s medium-term ambitions.

………………… Areva needs €2.7 billion for capital expenditure in 2009 and another €7 billion for investments between 2010-2012. The money is for modernizing or building new production facilities, financing research and development for new nuclear reactors, and expanding its mining activities.

Areva also needs cash to finance the process of licensing its new-generation nuclear reactors in countries like Britain and the United States. Areva also needs at least €2 billion to buy back Siemens’s 34 percent stake in a reactor joint venture, under a previous agreement.

………………. observers said it might be a tough act to balance, adding that it was impossible to know whether the government would, in the end, opt for bold measures or the bare minimum……………….

http://www.iht.com/articles/2009/03/16/business/deal.php

March 17, 2009 - Posted by Christina Macpherson | business and costs, France