The ongoing nuclear disaster in Fukushima, Japan, and a bad mine operation deal in Africa, is bringing down a major player in international nuclear power; Areva. The result will mean job losses all over the world, and possibly here in Idaho.
French government owned Areva recently announced that their revenues have crashed since the Japanese nuclear disaster began in March, and, since the French government opened an investigation into Areva’s purchase of a mining operation in Namibia, Africa.
On 13 December 2011, Areva officials unveiled a five year plan to reduce the size of the company. This is because of a projected loss of U.S.$2.1 billion for just this year, and expected losses in the next few years.
Areva officials have already announced they will not replace French employees who retire, and they are laying off 1,500 German employees.
This is because of a negative backlash against nuclear power, as a result of the Japanese nuclear disaster. In Germany, the government decided to end all reliance on nuclear power. In Japan, the prefectural governments are refusing to allow nuclear power plants to start back up. Both actions in Germany and Japan are at the demands of the majority of the citizens.
Areva’s loses also come from what is looking like a pig in a poke deal, from their purchase of uranium mines in Namibia, Africa. Areva spent $2.5 billion on the mines, and the French government is now investigating because it turns out the mines have only half the projected uranium that Areva officials were told it had.
As part of their five year turn around plan Areva has suspended the construction of a uranium enrichment plant near Idaho Falls, Idaho. State officials claim that Areva has agreed to keep on their payroll about 300 Idaho employees, but that’s only until the end of 2012.
The problem now is that Areva has stated that their continued operation depends on the sale of ten new generation EPR (European Pressurized Reactor) nuclear power units. Those sales need to take place between 2012 to 2016.