NUKEM Company May 11
NUKEM Group Presentation
Alzenau, May 2011
copyright by NUKEM GmbH
www.nukem.de
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NUKEM Company May 11
copyright by NUKEM GmbH
NUKEM Group at a Glance
Over 50 Years Experience in the Nuclear Sector
Headquarters:
• NUKEM GmbH, Alzenau (Germany)
& NUKEM Inc., Danbury (USA)
Representative Offices:
• Moscow
• Tashkent (Uzbekistan)
• Ust Kamenogorsk (Kazakhstan)
Key Figures
• Sales
• Employees
Financial Year 2010
€ 530 million
37
www.nukem.de
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NUKEM Company May 11
copyright by NUKEM GmbH
www.nukem.de
NUKEM History (1)
1 April 1960: Foundation of NUKEM (Nuklear-Chemie und -Metallurgie
GmbH)
Major shareholders:
Degussa (52.5%)
Rio Tinto (22.5%)
Metallgesellschaft (15.0%)
(after November 1960)
Mallinckrodt (10%)
Major activities: research and development of powder process
technology, pelletizing and sintering of pellets; production of fuel
plates for material test reactors
1973:
Purchase of enrichment services from TENEX for RWE
1974:
Foundation of NUKEM-Luxemburg (NULUX)
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NUKEM Company May 11
copyright by NUKEM GmbH
www.nukem.de
NUKEM History (2)
1982:
Foundation of US subsidiary NUKEM, Inc., dealing with nuclear
fuel services in the US
1992:
Long-term uranium supply contracts concluded with
Kazakhstan and Uzbekistan, including purchase of existing
stocks
1999
NUKEM, Cameco and AREVA signed a commercial
agreement with Techsnabexport (TENEX), for the purchase of
natural uranium derived from Russian HEU (HEU Feed
Agreement)
2006:
Advent International acquires NUKEM from RWE
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NUKEM Company May 11
copyright by NUKEM GmbH
www.nukem.de
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About NUKEM
• World‘s largest global traders of uranium, conversion, and enrichment
services
• One of the top five providers of uranium to nuclear power plants
worldwide:
- Delivering over 15 million pounds of U3O8 annually
- Long-term Supply Arrangements until 2022
- Purchase and marketing of uranium feed (UF6) under the high-enriched
uranium (HEU) deal with Russia
- Partnership with major uranium mining enterprises in Kazakhstan and
Uzbekistan
- Spot Purchase Arrangements
NUKEM Company May 11
copyright by NUKEM GmbH
www.nukem.de
Long Term Contract History
NUKEM has had successful long term supply contracts for uranium,
conversion and enrichment services with the following utilities worldwide:
• Arizona Public Service, USA
• British Energy, UK
• Chubu, Japan
• Baltimore Gas & Electric, USA
• CEZ, Czech Republic
• CFE, Mexico
• Constellation, USA
• EdF, France
• CNEIC, China
• Dominion, USA
• Enusa, Spain
• Dioxitek, Argentina
• Duke, USA
• Eon, Germany
• EPDC, Japan
• Entergy, USA
• KRSKO, Slovenia
• Eskom, South Africa
• FP&L, USA
• PAKS, Hungary
• INB, Brazil
• PG&E, USA
• RWE, Germany
• KEPCO, Korea
• PP&L, USA
• Tenex, Russia
• KHNP, Korea
• PSE&G, USA
• TVO, Finland
• Taipower, Taiwan
• Rochester, USA
• Vattenfall, Sweden
• Southern Companies, USA
• TUCO, USA
• Yankee Atomic Power, USA
• Tepco, Japan
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NUKEM Company May 11
copyright by NUKEM GmbH
NUKEM’s sales in Mexico
NUKEM is Mexico’s sole supplier of uranium and enrichment
services: 2003 through 2016.
Comision Federal de Electricidad, Mexico’s sole nuclear
utility, has been purchase uranium from NUKEM since 1993.
 Total deliveries will be over 4,250 MTU and 2.4 million SWU
with a total value of almost USD 0.9 billion.
Spot and Long Term Contracts
www.nukem.de
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NUKEM Company May 11
NUKEM’s sales in Taiwan
NUKEM is Taiwan’s biggest single supplier
of uranium.
For the past 25 years, NUKEM has been
supplying Taiwan with natural uranium in
the form of U3O8 and UF6.
Taipower, Taiwan’s sole nuclear utility,
purchase roughly 20 million lbs U3O8e
since 1985 and NUKEM supplied 53% of
these purchases.
Spot and Long Term Contracts
copyright by NUKEM GmbH
www.nukem.de
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NUKEM Company May 11
copyright by NUKEM GmbH
NUKEM’s sales in South Korea
 NUKEM has been a supplier of uranium to South Korea
since 1994.
 Total deliveries to exceed 5,450 MTU.
 Amounts to roughly 15% of total reactor requirements.
 Spot and Long Term Contracts
www.nukem.de
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NUKEM Company May 11
copyright by NUKEM GmbH
NUKEM Product Portfolio
Nukem has delivered Uranium to the following reactor types
• PWR (Westinghouse, Siemens)
• BWR (GE)
•AGR (BNFL)
• CANDU (AECL)
• VVER (ASE)
Nukem has delivered the following
product types under long term / spot
contracts
- Enriched UF6
- Natural U3O8
- Enriched UO2
- Natural UF6
- Conversion Services
- Natural U02
- Enrichment services
- Non ASTM specification - UF6, UO2
www.nukem.de
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NUKEM Company May 11
copyright by NUKEM GmbH
www.nukem.de
NUKEM Delivery Commitments vs.
Uranium Production of the Major Producers
Million lbs U3O8
30
 NUKEM is one of the six
major players
25
 Covers ~ 10 % of the world
uranium demand
20
15
10
5
0
AREVA *)
Cameco *)
*) HEU Feed included as “production”
2010 numbers preliminary
2001
2002
2003
Rio Tinto
Uranium
2004
2005
KazAtomProm BHP Billiton
2006
2007
2008
NUKEM
2009
2010
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NUKEM Company May 11
copyright by NUKEM GmbH
www.nukem.de
Components and Services in the Fuel Cycle Service
Suppliers
- Producers
- Governments
- Intermediaries
- Funds
- Utilities
Buyers
- Utilities
- Producers
- Intermediaries
- Funds
Products / Services
- Natural Uranium
(U3O8, UF6)
- Conversion
- Enrichment (< 5%)
- Residue Recovery
NUKEM
Type of Transactions
- Sales Purchases
(Spot / Long-term)
- Uranium Loans
- Sale - Buy - Back
- Buy and Hold
- Swaps
Logistics
- Transport
- Storage
- Swaps
Finance
- Foreign Exchange
Transactions
- Inventory Financing
- Supplier / Trade Credits
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NUKEM Company May 11
copyright by NUKEM GmbH
www.nukem.de
Industry Relationships
• Converter storage/holding accounts for U3O8 & conversion credits
• Fabricator storage/holding accounts for EUP (UF6 & oxides) held as feed &
SWU credits
• Fabricator processing agreements for off specification materials
• Fabricator qualification & supply of UO2 powder for pellet production
• Fabricator umbrella/teaming agreement for special projects
• Fabricator pellet qualification trials
• Enrichment storage/holding accounts for UF6
• Accounts allow for physical and or book transfer delivery to customers
• B&W/NFS (HEU down blending and purification)
• Customer relationship
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