Stages of the nuclear fuel cycle in France
Uranium extracted from uranium mines is delivered to processing plants.
The natural uranium produced is then sent to the enrichment plants and then to fuel fabrication plants.
The nuclear fuel assemblies are sent to EDF's operating fleet. Electricity is generated in the nuclear power plants from these assemblies, it is then transported and distributed to customers.
The operation of the power plants produces short-lived nuclear waste that is sent to treatment and storage facilities. Spent fuel assemblies are sent to plants for reprocessing.
This reprocessing generates long-lived nuclear waste which is destined for deep reversible geological disposal (from 2025 onwards).
Spent fuel reprocessing plants produce recyclable materials that are re-circulated in processing plants to follow a new assembly production cycle.
Upstream
To ensure the continuity and security of the supply of its reactors in France and theUK, EDF retains overall control of all operations at each stage of the cycle, through a portfolio of contacts and by stockpiling at different stages of the front-end stage of the fuel cycle (natural uranium, fluorinated enriched or unenriched uranium, and warehousing of new assemblies).
Orano is, in this respect, an important supplier (see section 2.2.4, “Operational Performance – 4E Operational continuity of supply chains and contractual relations").
Where necessary, the Group implements a strategy of currency hedging for its uranium supplies.
Natural uranium supply
EDF’s uranium supplies are guaranteed by long-term contracts for periods of up to 20 years with a policy of diversification in terms of sources and suppliers.
In 2019, EDF continued the securing of its long-term supplies with a number of major market suppliers.
Indexation formulas for portfolio contracts of natural uranium supply include fixed prices (base prices whether inflated or not) and variable prices (indexed according to market price indexes) and are sometimes limited by floor and ceiling prices. Consequently, the effects of fluctuations in market prices of natural uranium supply costs are limited.
With manufacturers in the nuclear industry meeting within the World Nuclear Association (WNA), which brings together, among other, companies representing most of worldwide uranium production, EDF is making sure to implement best practices in mineral extraction so as to contribute to making overall progress in this sector. Since 2011, EDF has been periodically conducting mine audits based on a method drawn in collaboration with the WNA, which constitutes a standardised framework recognised by all stakeholders in the sector. Recommendations may be made, together with an improvement plan if necessary.
These principles defined by the WNA aim to perpetuate the best practices observed on the field and share them with all sector stakeholders; they notably reassert the principles defined by the International Council on Mining and Metals for sustainable extraction and use of uranium(1). The clauses listing EDF’s expectations in terms of enforcement of the fundamental rights and main international standards by suppliers and subcontractors have progressively been inserted in contracts signed by EDF. In Particular, they stress transparency and EDF’s faculty to come and audit the supplier.
(1) These ten principles concern the health of workers and local populations (safety and protection against radiation and emissions); environmental preservation (waste management and protection of drinking water resources); the need for a legal framework in accordance with current legislation and international standards (AIEA) to monitor and manage radiation, health and safety for stakeholders and the general public, waste management and environmental protection; information, transparency and dialogue with stakeholders; responsible management of hazardous waste and contaminated materials by using the best available technologies; the development of a quality management system upstream of the project (Environmental impact study) including risk analysis; accident management preparation; transport of hazardous waste incomplete safety and security; regular staff training.