29.12.2006 // PR Directorate of TVEL OJSC

According to the preliminary information, in 2006 the consolidated income of TVEL Corporation will exceed 60bln RUR, assets will make up almost 63bln RUR, net profit — over 5bln RUR.

All nuclear fuel supplies have been made in time.

In 2006 TVEL won international tenders for supplying nuclear fuel to Temelin NPP (Czech Republic) and Loviisa NPP (Finland). The victories have allowed the corporation to regain its control over nuclear fuel supplies to all foreign NPPs operating VVER reactors. TVEL has also won a tender for prolonging the period of its supplies to Kozloduy NPP (Bulgaria). As a result of the victory of French-Russian consortium in the tender for finishing Belene NPP (also Bulgaria), TVEL will become the plant’s supplier. Hence, the won tenders and the new contracts alone will give TVEL additional income worth over $3bln till 2030.

Under its contracts with Kudankulam NPP (India), TVEL has made and sent the first consignment of fuel to that plant. Under the unique project for liquidating the consequences of an accident in the 1st well of the 2nd unit of Paks NPP (Hungary), TVEL has removed 95% (5.5 tons) of damaged fuel. The project is to be finished in Jan 2007.

In 2006 TVEL’s ore mining plants (PPGKhO (Argun Production Mining Chemical Association), Dalur and Khiagda) extracted 3,200 tons of uranium. The corporation has launched the main process building of Dalur and an ore dressing factory at PPGKhO. This factory will substantially enhance ore processing efficiency. PPGKhO has won a tender and has got a license for developing Agrun and Zherlov deposits of Streltsovsky ore field, with total prospected resources of 40,900 tons of uranium.

In 2006 TVEL has actively modernized the equipment of its machine building enterprises. Particularly, it has commissioned a new filling line for VVER-440 reactors at Moscow Machine Building Plant, has enlarged the production of uranium-gadolinium pellets (25 tons a year), has launched a modern galvanic line. At Novosibirsk Chemical Concentrate Plant TVEL has launched a production of ceolite catalysts for the oil-gas industry with a capacity of 150 tons a year. At Chusov Metallurgical Plant the corporation has commissioned the first in Russia 25 MW industrial combined-cycle unit. This unit will make the plant absolutely independent from the host-region’s energy system.

In 2006 all TVEL’s enterprises worked safely and according to the plan.

During the year the corporation has carried out lots of research and design projects. Particularly, it has tested modified TBCA-Alfa and TBC-2M fuel assemblies. Much work has been done under NPP-2006 project.

In order to enter new markets, TVEL has worked out a TBC project for western-type PWR reactors and has already established contacts with potential consumers. TVEL Acting President Anton Badenkov says that in 2007 the corporation is planning to promote Russian nuclear fuel for reactors of western manufacture.

With a view to consolidate the assets of the nuclear machine building and uranium production companies, TVEL has set up Atomenergomash (where it holds 94% of authorized capital) and Uranium Mining Company (50%).

TVEL has got a complex program for 2007 aiming to reduce production costs by over 2bln RUR. Besides, due to scientific research, design and testing activities, starting from 2007, all the Russia-based units with VVER-1000 reactors will be switched to TBC-2 or TBCA, which will allow to reduce costs due to fuel production range unification.