6 August 2010 – Eskom and Joint Stock Company “Techsnapexport” (Tenex) signed a contract in Moscow on 5 August 2010 for the supply of low enriched uranium, known as Enriched Uranium Product (EUP) to Eskom.

The negotiations for this contract have been in progress for some time, and were completed during the 9th meeting of the South African and Russian Inter-governmental Technical and Economical Cooperation (ITEC) meeting held in Moscow on 2 and 3 August 2010.

The contract covers the supply of a portion of Eskom’s Koeberg nuclear power plant (NPP) enriched uranium requirement for the period from 2011 to 2017. For its operation Koeberg requires nuclear fuel elements fabricated with low enriched uranium. The enrichment level is less than 5%.

Tenex has previously supplied part of the enriched uranium required for Eskom’s Koeberg NPP. The first contract between Tenex and Eskom for enriched uranium was signed in August 1995 and the second in October 2004.

Eskom’s nuclear fuel procurement strategy includes the diversification of suppliers. The contract with Tenex creates a diversification of suppliers which is an element of Eskom’s nuclear fuel procurement strategy. Eskom now holds contracts with three of the four main suppliers of u uranium enrichment services in the world.

We look forward to the partnership created between the two countries. This contract is favourable to South Africa and will contribute to the low primary energy cost of the Koeber Nuclear Power Plant.