The shareholders of SNN approved by GMS Resolution No. 5/April 25, 2018, the “Strategy for diversifying sources of raw material supply needed to produce nuclear fuel”, and implicitly, the gradual transition from the purchase of uranium dioxide (UO2) to the purchase of uranium technical concentrate (U3O8), the measures also including the identification of a solution to ensure the processing/refining capacity of the uranium technical concentrate (U3O8), i.e., the raw material from which the sintering uranium dioxide powder (UO2), necessary for the manufacture of nuclear fuel bundles, is obtained. Through specific studies and optimal conditions for the purchase of uranium technical concentrate, SNN considered processing it at the Feldioara Factory with the uranium technical concentrate processing line being taken over by SNN from CNU.
In financial year 2021, the National Company Nuclearelectrica S.A. (“SNN”) signed with CNU the contract for the sale and purchase of assets within the uranium concentrate processing line at the Feldioara Branch of the CNU on March 18, 2021, following the approval of the transaction and mandating the executive management of SNN to sign this transaction by the Resolutions of the Board of Directors of SNN and the approval in the General Meeting of Shareholders of CNU.
STAGES OF IMPLEMENTATION
The scope of the transaction consists only of assets (land, buildings, special constructions, installations, machinery and equipment).
The acquisition of some assets of the Feldioara Branch is structured in two different stages: Contract execution date, stage which took place on March 18, 2021, and Completion Date, when the transfer of ownership will occur, and the payment will be made in compliance with the contractual provisions. Between the two stages, a series of prerequisites are foreseen, which depend to a large extent on the support of CNU. Thus, on the date of execution, the general terms and conditions of the transaction were agreed, and the prerequisites were established. On the completion date, the immovable asset sale-purchase contract and the movable asset sale-purchase contract will be signed in authentic form, based on the terms and conditions established on the date of execution.
The prerequisites mainly consider the transmission and issuance by the competent authorities of the necessary transfer authorizations, permits and approvals, as well as the clarification by CNU of certain aspects related to the performance of the asset transfer.
The strategic decision to acquire part of Feldioara’s assets necessary for the processing of the raw material was aimed at ensuring integrated production capabilities within SNN and, to an equal extent, ensuring the production of fuel bundles and the optimal operation of Pitesti NFP and Cernavoda NPP, in the context of expanding the capacity of the nuclear power plant, and maintaining the nuclear fuel cycle at national level, at an advantageous transaction cost, as well as reducing the reliance on a single supplier.