«An Integration Under the Uranium Projects»
"Economic Policy" magazine, No. 18, October 2005
Anton Badenkov
Vice-President, JSC TVEL |
This summer Russian TVEL Corporation announced its readiness to study the issues related to the investments in the Ukrainian uranium deposits. In June the TVEL delegation headed by Ivan Kamenskykh, the Deputy Director of the RF Federal Atomic Energy Agency (Rosatom) has examined "Novokonstantinovskoye" deposit and has been left satisfied with the qualification level of the Ukrainian specialists and the state of the equipment. Anton Badenkov, Vice-President of TVEL Corporation has told about its plans in his brief interview to our magazine.
- What is the interest of the Corporation in the Ukrainian uranium deposits connected with?
- Firstly, with the fact that these deposits as well as the Eastern ore mining and processing combine in the Soviet period were part of the structure of the Ministry of Medium Machinery and had close cooperative relations with current Russian industry's enterprises. After the collapse of the Soviet Union Russia has left with rather few proven uranium deposits, so we are interested in a closer integration. Secondly, we have been talking for a long time about the integration of Russian and Ukrainian enterprises working in the field of nuclear fuel cycle (NFC) for the mutual benefit of the two countries' economies, including the creation in Ukraine of the NFC elements. During the visit this issue has also been discussed.
- On what terms would TVEL like to invest in "Novokonstantinovskoye" deposit?
- It is too early to discuss it for the time being. In the first place it is necessary to prepare an appropriate legal basis and to determine the possibility of investment itself as the deposit is included in the list of strategically important facilities. As soon as these issues become clear we will start discussing the investment terms. The ball currently is in the Ukrainian side. The deposits themselves as regards their climate, location, uranium contents look more attractive than many Russian or Kazakh. The only problem is the cost-effectiveness. There were preliminary negotiations held with the Ukrainian authorities, during which TVEL's participation in the development of nuclear fuel cycle elements in Ukraine have been discussed. Other projects haven't been discussed so far.
- Is there any work in progress regarding the problem of changing the terms of fresh nuclear fuel supplies to Ukraine (considering an unprecedented increase in the world prices of uranium)?
- We are acting within the framework of the contract, signed in 1997 after TVEL had been announced the winner of the international tender for nuclear fuel supply conducted in Ukraine. With regard to our long-term partner relations with NAEC "Energoatom" we grant to the Ukrainian party the most favorable trade partnership terms even regardless of the substantial increase in the world prices for uranium.
- What is your forecast on the dynamic of uranium prices (under long-term contracts) within the next few years?
- The prices under long-term contracts are currently growing. For the last two years they have increased from USD 25 to USD 75 per kilogram. They will keep on growing in the future due to many reasons, including the deficit of organic raw materials and growth of world oil prices. According to the international experts' estimates, uranium mining is currently profitable. The prices will stabilize after the market's saturation.
- How does TVEL assess the Ukraine's efforts to diversify the supplies of fresh nuclear fuel (FNF), meaning among others its cooperation with Westinghouse?
- The problem concerning the supplies from Westinghouse to Ukraine is, in my opinion, somewhat exaggerated. A tender on the supplies was never announced and the deliveries took place within the framework of the technical assistance from the US government. In fact we are speaking about a humanitarian aid. In any case I feel sure that common sense and economic feasibility will be the main factors governing Ukraine's choice of the fuel supplier.
- In what direction is the work being conducted aimed at improving the quality of Russian-made FNF supplied to Ukraine?
- This year the State nuclear regulatory committee of Ukraine has approved a decision on operating TVSA-type nuclear fuel at 11 units of Ukrainian NPP's. The operation of these types of fuel assemblies makes it possible to improve the reactors' reliability, to perform fuel re-loadings rarely, to increase burn up depth and to enhance efficiency of fuel cycles. As a result all these factors and many others improve economic indicators of Ukrainian NPP's operation. At the same time the TVSA design has an extensive potential for further development which will be able to ensure 5-6 year fuel cycles and as a result to improve economic effectiveness of Ukrainian NPP's. At the NPP's operating TVSA - type nuclear fuel which has an enhanced operation life and stable design it is planned to introduce maneuvering modes - a necessary element of efficient operation of any NPP. The Joint Commission of NAEC "Energoatom" and JSC TVEL has been working in this direction for over two years. Unit 2 of Khmelnitsky NPP has been chosen and has already passed the phase of "experimental approval of fuel maneuverability". Currently an experimental-industrial operation of this mode is being prepared after which the commercial operation of fuel in maneuvering mode will become possible. In the near future a contract with NAEC "Energoatom" is going to be signed on the introduction of fuel maneuvering modes at Ukrainian NPP's.
- What does TVEL think about the prospects of Russian-Ukrainian-Kazakh joint venture, which till now haven't been functioning yet?
- JSC "Joint Russian-Ukrainian-Kazakh Venture in Production of Nuclear Fuel" besides of JSC TVEL is composed of JSC National Atomic Company "Kazakhprom" (Kazakhstan) and State Property Fund of Ukraine. An effective functioning of a joint venture depends on the activities of al of its members. This summer a trilateral meeting was held at which a position was elaborated on the development of integration in the field of nuclear fuel cycle. A working plan has been set up which is going to be implemented.
- Is it feasible for Ukraine to develop its own nuclear fuel cycle? At what elements of NFC do you think the attention should be focused?
- Talking about NFC elements in Ukraine, these are first of all the development of uranium and zirconium products as well as components-production. In these fields a joint work is under way.
Interview by Irina Dubrova
("Energy Policy of Ukraine" magazine, No. 10, 2005.)
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