French energy giant Areva said on Thursday that it had signed a contract worth some €80-million (around R20,6-million) with aluminium producer Rio Tinto Alcan, to build a power supply system for its new smelter in Port Elizabeth.

Under this contract, the company would deliver a conversion substation that would supply the smelter with direct current for the aluminium production process.

“This contract strengthens our long-standing partnership with Rio Tinto Alcan. It represents a step forward towards our global objective to double our order intake for the electro-intensive industries by 2010,” commented CEO Anne Lauvergeon.

This announcement was made during French President Nicolas Sarkozy’s state visit to South Africa.

Lauvergeon also reaffirmed the company’s commitment to strengthen its position in the country’s nuclear industry.

Areva and rival Toshiba Westinghouse, of the US, confirmed late in January that they had submitted bids to Eskom, South Africa’s power utility, to build the country’s next new conventional nuclear power station.

Areva had offered to build a fleet of European Pressurised Reactors (ERPs) and to support and coinvest in the development of a nuclear sector in South Africa.

“The group is ready to partner extensively with various entities in South Africa to build the EPR fleet and develop different aspects of the nuclear industry, from manufacturing and uranium beneficiation,” it said in a statement on Thursday.

The group also entered into several agreements related to skills development, reaffirming its commitment to South Africa’s nuclear education development.

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