Uranium National Company (CNU) publicly explained the reasons why the price of uranium dioxide powder delivered for use in Cernavodă nuclear power plant reactors was increased.
More specifically, since the High Court of Cassation and Justice (HCCJ) had irrevocably decided in November 2015 the application of measures established in 2012 by the Court of Auditors, the budgetary obligations imposed on the company could be met only through increasing the sales price of its ore, say CNU representatives. Prior to the HCCJ decision, budgetary obligations represented 10% of the selling price of the ore extracted by the company; this share had climbed to 80% of the sale price after the decision taken in November 2015, indicates the state company.
“Uranium National Company (CNU) was obliged to recalculate the price of its uranium dioxide and began the process of renegotiating the price in the contract with Nuclearelectrica following the irrevocable decision of High Court of Cassation and Justice, delivered on 13.11.2015. HCCJ decision maintains the measures with major financial impact ordered by the Court of Auditors in the review carried out in 2012 (Decision S*83/2012), measures leading to increased sales price.
Following this decision, CNU recalculated the price of sinterable uranium dioxide powder so as to cover both the budgetary requirement laid down by Article 4 of Government Decision no. 1009/2009, according to the calculation method, and the costs of obtaining the sinterable uranium dioxide from processing U3O8″, say the company officials.
In negotiations with Nuclearelectrica, the operator of Cernavodă nuclear plant, a consensus was not reached on accepting a price to cover the obligations to the state budget and operational expenditures, leaving CNU unable to deliver ore based on the contract in force.
“The critical situation in which the company currently is has as causes an accumulation of actions: interruption since 2011 of the subsidy for this sector (for social protection, storage/inventory management of uranium concentrates), lack of funds for investment in existing plants, blocking investment such as opening and developing new deposits of uranium and selling the finished product (UO2 power) by a sole beneficiary at a low price”, CNU press release said.