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Mega-reactor builder Areva to triple uranium exploration

France's Areva, says it plans to substantially beef up its uranium exploration program and hired hundreds of geologists as India gets ready to open its borders to nuclear power development.

RENO, NV -

French mega-nuclear reactor builder Areva Friday said it plans to triple its exploration spending to US$124 million and hiring hundreds of geologists.

In an interview with Bloomberg News, Olivier Mallet, chief of Areva's mining operations, said "We aim to trip our exploration budget, double the number of geologists and buy permits in Africa and Central Asia." The company currently has a staff of 150 geologists and spent nearly $41 million last year for exploration.

Meanwhile, Areva , General Electric, Westinghouse Electric and Russia's Rosatom are competing for $14 billion of orders from India as the International Atomic Energy Agency lifts a 33-year ban on the nation's acquisition of nuclear technology. International sanctions were imposed after the nation conducted a nuclear weapon's test in 1974.

India also does not allow private utilities to generate nuclear power, but may soon permit private operators to enter into joint ventures with state-owned nuclear firms. Draft legislation to amend India's Atomic Energy Act is being reviewed by various ministries.

State-owned Nuclear Power Corp. already plans to set up nuclear power plants at four sites.

The nation's largest privately owned utility, Mumabi's Tata Power, is negotiating with Areva to obtain nuclear power equipment. Tata Chairman Ratan Tatas told shareholders Wednesday that the company will build power plants when and if India changes its rules.

Currently nuclear power supplies only 3% of India's electricity.

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