The Kansai Electric Power Co., Inc. and Sojitz Corporation previously announced on March 30, 2009 their official participation in a new uranium enrichment plant project advanced by AREVA NC of France. Under that plan, the companies worked through Kansai Sojitz Enrichment Investing (a joint venture formed with an equity breakdown of 80% by Kansai Electric and 20% by Sojitz) to acquire 2.5% of the outstanding shares of SET Holdings (a subsidiary of AREVA NC), with that deal completed on June 30, 2009.

In the latest chapter of this ongoing effort, Kansai Electric and Sojitz have now reached agreement with Tohoku Electric Power Co., Ltd. and Kyushu Electric Power Co., Ltd. for joint participation in the George Besse II uranium enrichment plant - a project being advanced by AREVA NC in Pierrelatte City in southern France.

Kyushu Tohoku Enrichment Investing (a company newly established by Tohoku Electric Power and Kyushu Electric Power) and Kansai Sojitz Enrichment Investing (newly launched by Kansai Electric Power and Sojitz) will jointly finance the establishment of the Japan France Enrichment Investing Company.

As noted, in June 2009 Kansai Electric Power and Sojitz worked through Kansai Sojitz Enrichment Investing to acquire a 2.5% stake in the outstanding shares of SET Holding, the company in charge of the actual operation of the George Besse II uranium enrichment plant project. On this occasion, the newly participating Tohoku Electric Power and Kyushu Electric Power will use the Japan France Enrichment Investing Company to acquire 2% of the outstanding shares in SET Holding. This means that the Japan France Enrichment Investing Company will come to hold 4.5% of SET Holding outstanding shares.

Kansai Electric Power and Sojitz are confident that participating in this project is a key step in obtaining information on the uranium enrichment market, which in turn will support the efforts to maintain a stable supply of uranium fuel. The two companies will continue to make every effort to contribute to the reliable procurement of uranium fuel over the years to come as well.

Attachment

Overview of the New AREVA NC Uranium Enrichment Plant Project

 

Outline of the Project (George Bess II Plant)

Location	Pierrelatte, France
Construction plans	Start construction: September 2006 Complete construction: By the end of 2010 (scheduled)
Operational plans	Start production: End of 2010 (scheduled) Full capacity: 2016 (7500 tSWU/year)
Owner/Operator	SET (Societe D’Enrichissement Du Tricastin)

Investment Scheme

 

Outline of the Companies

Kansai Sojitz Enrichment Investing

Location	23, rue de la Paix, 75002, Paris, France
Business	Investment in the uranium enrichment business and other related services
Shareholding	Kansai 80%, Sojitz 20%
Date of establishment	August 2008

 

Kyushu Tohoku Enrichment Investing

Location	23, rue de la Paix, 75002, Paris, France
Business	Investment in the uranium enrichment business and other related services
Shareholding	Kyushu 50%, Tohoku 50%
Date of establishment	September 2010

 

Japan France Enrichment Investing

Location	23, rue de la Paix, 75002, Paris, France
Business	Investment in the uranium enrichment business and other related services
Shareholding	Kansai Sojitz Enrichment Investing 55.6% Kyushu tohoku Enrichment Investing 44.4%
Date of establishment	September 2010

 

AREVA NC

Location	33, rue Lafayette, 75009, Paris, France
Business	Uranium mine development, uranium concentrate sales, natural uranium conversion sales, reprocessed uranium conversion sales, enriched uranium sales, fuel fabrication processing (MOX fuel), reprocessing, transport of nuclear fuel materials and related sales, other ancillary services relating to the nuclear fuel cycle (excluding electricity generation)
Shareholding	AREVA 100%
Date of establishment	January 1976

 

SET Holding

Location	33, rue Lafayette, 75009, Paris, France
Business	Ownership of SET shares, investment of dividends received
Shareholding	Japan France Enrichment Investment 4.5%, AREVA NC 88%, GDF SUEZ/COGAC 5% KHNP (Korea Hydro & Nuclear Power Company) 2.5%
Date of establishment	April 2008

 

SET

Location	33, rue Lafayette, 75009, Paris, France
Business	Ownership and operation of GB II Plant
Shareholding	SET Holding 100%
Date of establishment	December 2001