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Nuclear Energy & Uranium… What is it all about ?

Business Council of Mongolia December 7th, 2009

АРЕВА МОНГОЛ

AREVA MONGOL

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Nuclear Energy Cycle

Mining

Chemistry / Conversion

Enrichment

Fuel

Fabrication

Reactors

Maintenance /

Services

Recycling:

Mox Fuel

Fabrication

Used Fuel

Treatment

Distribution

Transmission

Other Sources

of Electric

Power

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Uranium mining, Conversion & Enrichment facilities

8 main Uranium Producing countries

6 Converting & 8 Enriching countries

Russia

Conversion

Uranium Mining

Enrichment

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Reactors

Nuclear generated electricity

World average = 16 %

France # 80 % (19 nuclear power plants, 59 reactors)

Nuclear reactors worldwide # 440 units

Standard nuclear reactor sizes

900 MW & 1300 MW (inv. = USD 2.5 Bn)

EPR = 1600 MW (inv. = USD 5 Bn)

Mongolia power needs (2008) # 750 MW

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Uranium - Key Figures (2008)

World production = 44.000 tU

# 1 : Canada = 9.000 tU (20 %) McArthur River mine = 6.400 tU

# 2 & 3 : Kazakhstan & Australia

# 4 : Russia = 3.500 tU Dornod + Dulaan Uul !

Top companies

# 1 : Rio Tinto = 8.000 tU (18 %)

# 2 & 3 : Cameco & AREVA # 6.500 tU

# 4 & 5 : Kazatomprom & ARMZ # 5.000 tU & 4.000 tU

Mining methods

Conventional # 65 % underground galeries + open pit

In-Situ Leaching (ISL) # 25 %

By-product # 10 %

Price

Spot = USD 42.5 /Lb (10%) vs. Term Contract = USD 65 /Lb (90%)

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Uranium - World Resources (2008)

Resources : inferred indicated measured

Reserves : probable proven

World total Resources = 4.5 M tU ( # 70 years )

# 1 : Australia = 1.15 M tU (25 %)

Mongolia # 62,000 tU (1.4 %)

Ranking 14th - Very close to India

2 times China resources

1/3 of Russia resources

Within 5 years could rank 10th – close to 100,000 tU

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Uranium

Discovered by Маrtin Klaproth - 1789

Named after « Uranus » planet

Metal

Dense (almost 2 times heavier than lead)

Radioactive

Listed in the

Mendeleiev Table

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Uranium

Gumnite + Pitchblend (> 1%)

Autunite

Uranium content

- Canada « conventional » : 1 to 2.5 %

- Mongolia « ISL » : 0.01 to 0.05 %

100 to 500 ppm

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Uranium

Decoration

Since 19th Century

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Radioactivity

Natural Radioactivity (emitted)

Granite = 5,000 Bq/kg Natural Uranium = 50,000 Bq/kg

Natural radioactivity / Man-made radioactvity = 75% / 25%

Average annual natural radioactivity exposure (received)

Individual world average = 2.4 mSv

Individual living at an altitude of 1,500 m = 3.6 mSv

Unventilated house built in a granitic area = 20 mSv

Annual regulatory limit for exposure to artificial radioactivity

Workers in the nuclear related sector = 20 mSv

Standard population = 1 mSv

Dulaan Uul dosimeters (workers) = 0.1 to 1.5 mSv

Average Dulaan Uul camp site (population) < 1 mSv

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Radioactivity measurement

Site dosimeter

Radiagem device

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Uranium in Mongolia

Sainshand Basin

Dulaan Uul project

Gurvansaikhan

Dornod

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Sedimentary basins

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In-Situ Leaching technique

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Mineralisations

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In-Situ Leaching technique

Injection of acid solution

(H2SO4) into the sandy

ore-body through

injection wells.

Dissolving of the uranium

by leaching / lixiviation.

Pumping up of uranium

solution to the surface

through production wells.

Uranium is captured in

ionic exchange columns.

Acid solution is reinjected

into the ground to

continue production.

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AREVA in Kazakhstan

In-Situ Leaching operations

AREVA in USA

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Yellow cake

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Yellow cake

BUM/DRS/CESAAM

BUM/DRS/CESAAM

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Energy is our future, don’t waste it !

Thank you !

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AREVA in the world - 2008

EUROPE AND CIS

57 % of sales

68 % employees

ASIA-PACIFIC

19 % of sales

14 % employees

100 countries commercial presence

€ 13,160 m Sales Of which 66% outside France / +10.4% over 2007

€ 417m Operating Profit 3.2% operating margin

75,000 Employees

43 countries industrial presence

AFRICA AND MIDDLE EAST

9 % of sales

5 % employees

Industrial presence

AMERICAS

15 % of sales

13 % employees