French uranium group Orano receives 300 mn euro injection from state

The company issued new shares which were bought entirely by the French state, bringing its stake to 90.3 percent, the company said.

"This operation demonstrates the willingness of the French state as a shareholder to contribute to the implementation of the strategic plan of Orano and its development," said a statement from Orano.

"It reflects a promising environment with new perspectives for nuclear energy in France and around the world to meet climate and sovereignty issues," it said.

The money will finance projects such as an extension of the Georges-Besse II enrichment plant in the south of France, which will increase the group's capacity by a third.

The uranium enrichment market is dominated by four players: Russia's Rosatom with a 43-percent stake, European group Urenco (31 percent), China's CNNC, and Orano (12 percent).

Russia's 2022 invasion of Ukraine led European countries to seek to cut their reliance on Rosatom.

Orano, which used to be called Areva, mostly enriches raw uranium from Canada and Kazakhstan. It recently stopped sourcing in Niger after it was unable to reach an agreement with the African country's new military leaders.

Orano's remaining shareholders are Japan's Nuclear Fuel Limited and Mitsubishi Heavy Industries, whose stakes after the capital increase fell to 4.8 percent each from five percent.