Annex 4
Profile of BNFL / COGEMA / ORC

4.1 BNFL

BNFL, directly and via subsidiary and associate companies, provides the full range of nuclear fuel cycle services to international markets, including enrichment, uranium hexafluoride production, uranium fuel manufacture, reprocessing, MOX fuel manufacture and waste management. BNFL also provides worldwide nuclear fuel transport services, runs a successful power generation business meeting nearly 8% of the UK's total electricity demand and has a thriving engineering business.

BNFL's overall aim is to grow profitably, providing the world with the best nuclear services, safely, efficiently, and with care for the environment.

A summary of BNFL's financial results for the last five years is given in the table below. In 1997/98, exports accounted for one-third of BNFL's turnover. BNFL now has an order-book worth £ 13 billion.

BNFL Financial Summary (£M)

Used nuclear fuel has been reprocessed at BNFL's Sellafield site since 1952. The present plants for reprocessing irradiated fuel began operating in 1964 and the latest plant, Thorp, began operating in 1994. Thorp represents an investment of £2.85 Bn, including associated facilities and is expected to operate for at least 25 years. 29 utilities in 9 countries currently have contracts to reprocess used nuclear fuel in Thorp, leading to several £Bn of export earnings for the UK. The uranium and plutonium recovered in the first ten years operation of Thorp could generate 600Twh of electricity, equivalent to the UK total electricity demand for two years or 20% for ten years.

BNFL operates a MOX Demonstration facility at Sellafield and has already delivered fuel assemblies to Swiss and German utilities. 1997 saw the completion of civil construction of a new MOX plant with all plant and equipment now being installed. This new plant will have an annual capacity of 120 tonnes of MOX fuel and will be capable of further extension to meet market demands.

BNFL's subsidiary company, BNFL Inc., operates in the North American market and has several offices in the USA. It has an order-book worth $ 2.5 billion. In 1998, BNFL, in partnership with Morrison Knudsen, concluded an agreement with CBS Corporation for the purchase of its Westinghouse global nuclear businesses. BNFL also has offices in France, Germany, Belgium, Japan, South Korea and China.

BNFL is a major UK industrial enterprise employing over 16,000 people many of whom work in the North West of England. BNFL recognises the need for a highly motivated and skilled workforce and that the company's competitive edge stems from the knowledge and experience of its staff. BNFL is committed to development and training to enhance skills and to ensure its staff are effectively and efficiently employed.

The main legislation governing the safety of BNFL's operations is the Health and Safety at Work etc. Act 1974 and the Nuclear Installations Act 1965 (as amended). Specific requirements for radiological protection of employees and the public are contained within the Ionising Radiation Regulations 1985 made under the Health and Safety at Work Act. BNFL is required to operate its nuclear sites within the conditions of nuclear site licenses issued by the Health and Safety Executive (HSE) under the Nuclear Installations Act and administered by the Nuclear Installations Inspectorate (NII).

4.2 COGEMA

COGEMA provides the full range of nuclear fuel cycle services to the French and international markets, ranging from uranium extraction and conversion to reprocessing and waste management, via enrichment and fuel fabrication. COGEMA is the world's largest provider of oxide fuel reprocessing services with over 8,500 tonnes of Light Water Reactor fuel reprocessed to date. COGEMA also runs the second largest engineering business in France and operates nuclear fuel transport services worldwide. COGEMA's activities contribute to the optimisation of the use of energy resources and the minimisation of ultimate waste volume and toxicity in line with the objectives defined at the 1992 Earth Summit regarding sustainable development. They also contribute to the reduction of the greenhouse effect and global warming in line with the objectives defined at the 1997 International Conference on Climate Change held in Kyoto.

In 1997 COGEMA's turnover was 32.7 billion francs (approximately $5.45 billion) of which 38% (FF. 12.4 billion) was achieved abroad. A summary of financial results for the last five years is given in the following table.

COGEMA Financial Summary (FF. Bn)

The first reprocessing plant in operation in France was Marcoule, which started in the mid-1950's. Over the years, COGEMA has reprocessed some 20,000 tonnes of nuclear fuel. La Hague has a nominal capacity of 1,600 tonnes per year and has contracts to reprocess nuclear fuel with 27 utilities from 6 countries. The uranium and plutonium are recovered for re-use in nuclear power stations. At full capacity (starting in 1995) enough materials can be recovered for re-use annually to generate 420 Twh.

To increase the existing MOX fabrication capacity at Cadarache, the MELOX plant at Marcoule was brought on line in 1995. It is designed to initially produce 120 tonnes of MOX fuel annually, with adjustments bringing it to 210 tonnes by 2000, with capacity for fabrication for both Pressurised Water Reactors and Boiling Water Reactors. A new plant is under project at La Hague should the capacity need to be extended.

COGEMA's operations span fifteen sites in France, including the La Hague reprocessing plant and the MELOX Mixed Oxide fuel fabrication plant which are the largest operating plants of their kind. COGEMA also has subsidiary companies in the USA, Japan, Germany Belgium and South Korea. Mining operations take place in North America, Africa, Australia and France.

COGEMA is one of the foremost industrial firms in France, employing over 18,600 highly skilled and well trained people.

The December 11, 1963 Decree on nuclear installations established the relevant legislation which governs COGEMA's operations. The implementation of this and subsequent legislation is supervised by the Direction de la Société des installations nucléaires (DSIN). The specific regulations concerning radiological protection are contained in the June 20, 1996 Decree on the General Principles Against Ionizing Radiation, modified on April 18, 1998.

4.3 ORC

Outline

The Overseas Reprocessing Committee was founded in October 1977 by members of the Federation of Electric Power Companies (FEPC) ⁽¹⁾ of Japan (nine companies) and Japan Atomic Power Company. Its main purpose is to support and coordinate implementation of the reprocessing contracts between these ten electric power companies and BNFL and COGEMA.

• Each of Japan's ten electric power companies is charged with task of supplying its service area with electric power and is responsible for all local operations from power generation through to final distribution. The companies are independent, and tailor their activities to the distinctive characteristics, demand traits and other features that exist in the regions they serve.
• As of April 1998, 52 nuclear power reactors operate in Japan, providing a total supply of 45,082 MW, and accounting for over 30 percent of Japan's total electric power output.

Data (Fiscal year ending March 1997)

• Total generating capacity of FEPC member companies: 179,515 MW
• Total capital: 2,599 billion yen
• Total revenue from energy sales: 14,530 billion yen
• Total number of employees: 150,622

Responsibilities of the Committee

1. Representing the Japanese Electric Power Companies for Reprocessing Service Agreements with BNFL and COGEMA
   
   • Review of business plans with respect to reprocessing projects,
   • Correspondence with competent Authorities concerning specifications of waste to be returned.
2. Representing the Japanese Electric Power Companies for Transport Service Agreements with BNFL and COGEMA (used nuclear fuel, vitrified residues)
   
   • Review of transport business plans and co-ordination of transport schedule,
   • Development of proposals for procurement of transport assets (vessels and transport packages) and co-ordination between related companies.
3. Public Acceptance activities and management of shipments of used nuclear fuel, vitrified residues and MOX Fuel
   
   • Co-ordination of procedures for shipments of used fuel, vitrified residues and MOX fuel, public acceptance work overseas and preparation of information materials.
4. Others
   
   • Documentation of application to competent authorities for various licenses and approvals with respect to the reprocessing and transport contracts,
   • Advisory work on procedures required by international conventions with respect tothereprocessing and transport contracts and co-ordination between related companies,
   • Technical review and collection of information concerning transport, reprocessing and waste.

(1) FEPC was established by the major electric power companies of Japan to promote the smooth and efficient development of Japan's electric power industry in 1952.