Nuclearelectrica [BSE:SNN], the operator of Romania's sole nuclear power plant (NPP) Cernavoda, said it has signed an agreement to acquire some assets within the uranium concentrate processing line at the Feldioara Branch owned by the National Uranium Company, CNU.
The strategic decision to acquire part of Feldioara's assets necessary for the processing and refining of the raw material from which the uranium octoxide required for the manufacture of fuel bundles is obtained, is aimed at ensuring Nuclearelectrica's integrated production capabilities, the company said in a statement filed with the Bucharest Stock Exchange, BVB, on Friday.
The deal also aims to ensure the optimal operation of the nuclear fuel plant in Pitesti (FCN Pitesti) and of the NPP in Cernavoda, in the context of expanding the capacity of the power plant, and will help maintain the nuclear fuel cycle at an advantageous transaction cost, Nuclearelectrica explained.
The object of the transaction signed on March 18 consists only of assets - land, buildings, special constructions, installations, machinery and equipment in Feldioara, excluding the mining activity there, Nuclearelectrica added.
The completion of the acquisition of assets is subject to obtaining necessary transfer authorizations and permits from relevant authorities.
Established in 1997, CNU is the only company that manages the existing uranium mineral resources in Romania and carries out geological research and exploitation of uranium deposits, ore preparation and refining of concentrates, as well as their transport and trade. CNU also ensures the conservation of uranium resources, the closure and recovery of objectives where the mining activity was stopped.
The Cernavoda NPP located in southeastern Romania operates two reactors of 700 megawatts each, which meet roughly a fifth of the country's electricity needs. The energy ministry owns a 82.49% stake in Nuclearelectrica.
In February, Nuclearelectrica's CEO Cosmin Ghita said that the company aims to commission a third reactor by 2031. According to Ghita, a fourth reactor is also planned, and the latest company estimations indicate a final cost of 7 billion euro ($8.51 billion) for the two new units.
Nuclearelectrica's shares traded 0.40% lower at 24.8 lei ($6.04/ 5.08 euro) by 0925 CET on Monday on the BVB.
(1 euro = 4.8858 Romanian lei)
(SeeNews, March 22, 2021)
