Rio Tinto, Areva Win $3 Billion U.A.E. Contracts

The Emirates Nuclear Energy Corp., the company developing nuclear power in the United Arab Emirates, awarded fuel supply contracts worth about $3 billion.

Rio Tinto Plc and Uranium One Inc. (UUU) will supply natural uranium, and Urenco Ltd. will provide enrichment services, Emirates Nuclear said in an e-mailed statement today. ConverDyn will provide conversion services, according to the statement.

Rosatom Corp.’s nuclear fuel trader OAO Techsnabexport, also known as Tenex, and Areva SA (AREVA) will supply uranium concentrates, conversion services and enrichment services, according to the statement.

Emirates Nuclear “expects to return to the market at various times to take advantage of favorable market conditions and to strengthen its security of supply position,” it said in the statement.

The U.A.E is aiming to be the first Gulf Arab nation to develop nuclear power, with the first of four 1,400 megawatt reactors scheduled to start operating in 2017. Korea Electric Power Corp. (KEP) was awarded the contract to build the plants in 2009. A joint venture between ENEC, as the local developer is known, and Korea Electric will operate the units under that deal.

The contracted fuel will enable the Barakah facility in Abu Dhabi’s Western Region to generate up to 450 million megawatt- hours for a period of 15 years starting in 2017, the statement said.

To contact the reporter on this story: Ayesha Daya in Dubai at adaya1@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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