Michele Kearney's Nuclear Wire

Major Energy and Environmental News and Commentary affecting the Nuclear Industry.

Friday, October 26, 2012

i-Nuclear update: EDF gets stake in uranium project under long-term contract deal with Paladin Energy

-NUCLEAR

 

EDF gets stake in uranium project under long-term contract deal with Paladin Energy
 

by I-Nuclear
 
Australian Stock Exchange-listed Paladin Energy confirmed October 26 that a long-term uranium off-take contract it announced in August is with Electricite de France.
Paladin had not divulged the counterparty in the contract when it was first announced August 15, but confirmed October 26 that the contract for 13.7 million pounds of uranium oxide (U3O8) to be delivered over the years 2019 to 2024 was with EDF.
The uranium delivered under the contract will be sold at market prices prevailing at the time of delivery bounded by escalating floor and ceiling prices, Paladin said.
EDF, the state-owned French nuclear utility, operates 58 reactors in France alone making it the single largest nuclear utility in the world.
The contract involves a prepayment of US$200 million by EDF towards future deliveries. Paladin said US$50 million had already been paid and a second tranche for the remaining US$150 million was due by the end of January.
To secure Paladin’s obligation to deliver product representing the prepayment amount, EDF will hold security over 60.1% of Paladin’s Michelin uranium project in Canada.
The percentage of Michelin secured will be reduced by joint agreement as the value of that project is enhanced by Paladin’s ongoing work, Paladin said. The Michelin security can also be replaced by other appropriate security, it said.
I-Nuclear
 
| October 26, 2012 at 12:49 pm | Categories: EDF
 
, France
 
, Paladin
 
, Uranium
 
| URL: http://wp.me/p22dAl-p8
 

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