Press Release on Finalizing Formation of the Company with a Complete Nuclear Fuel Cycle
22.07.2008As of today, the “Kazatomprom” has generally finalized formation of the transnational vertically integrated company with a complete nuclear fuel cycle. Thus, Kazatomprom is accomplishing its strategic task – to establish a complete production cycle and supply the highest added value uranium products to the world markets.
You may see below basic results of the nuclear fuel cycle establishment and successful implementation of Kazatomprom’s strategic program that is to increase the annual production to 15,000 tons by 2010.
In 2008, Kazakhstan schedules to produce over 9,000 tons U. This year the mines were or will be put into operation as following:
- Irkol, with a designed capacity of 750 tons U a year, is to be launched in August 2008;
- Zapadnyi (Western) Mynkuduk (Appak LLP), with a designed capacity of 1,000 tons U a year, was put into operation on June 3.
- Inkai, with a designed capacity of 2,000 tons U a year (by 2014, it is expected to reach the full capacity of 4,000 tons) is to be put into operation in August 2008.
- Khorasan-1 (Kyzylkum LLP), with a designed capacity of 3,000 tons U per year,
- Kainarskii site (Mining Company LLP), with a designed capacity of 300 tons U a year,
- Yuzhnyi (Southern) Inkai, with a designed capacity of 2,000 tons. Pilot production is currently underway, commercial production will start in 2009.
The mines to start-up in 2009 are the following:
- Khorasan - 2 (Baiken-U LLP), with a designed capacity of 2,000 tons U a year,
- Semizbai (Semizbai LLP), with a designed capacity of 500 tons U a year and possible extension to 750 tons U.
In 2009, Kazakhstan’s uranium production will amount to 12,826 tons U. According to the Department of Strategic Marketing, Kazatomprom, Canada’s output will be 11,100 tons, Australia’s – 9,430 tons (the forecast has been based on published data). Among the world uranium producers, Kazakhstan may become a leading producer as early as in 2009.
On June 3, 2008, Kazatomprom and Cameco (Canada) established a new joint venture – Ulba-Conversion LLP based on the Ulba Metallurgical Plant. It will be a conversion facility with an annual capacity of 12,000 tons UF6 (approximately 17% of the world conversion capacity). Kazatomprom will own 51% shares of the joint-venture, Cameco – 49%. A feasibility study for construction of the conversion plant will be financed by partners pro rata their participatory interest and is expected to be finalized in 2009. Construction technologies for the plant will be provided by Cameco.
We remind that another segment of the nuclear fuel cycle, namely, enrichment, will be established jointly with Russia under the intergovernmental program of peaceful nuclear cooperation signed in 2006. The Kazakhstani-Russian JV “Uranium Enrichment Center” will be located in Angarsk city (Irkutsk oblast, the Russian Federation). The first output is scheduled for 2011.
Reconversion of enriched UF6 to uranium dioxide will be performed at existing processing lines of JSC UMP. Such uranium dioxide is used for the fuel pellets production. Kazatomprom is currently very active in certification of uranium dioxide and fuel pellets for all reactors of Western design.
In Paris on June 11, 2008, in the course of the official visit of Kazakhstan’s President Nursultan Nazarbayev, a new agreement for fuel assemblies (a final product of the nuclear fuel cycle) was signed with French AREVA. AREVA will provide technical support for establishing production of fuel assemblies with an annual capacity of 1,200 tons at the Ulba Metallurgical Plant. Assembly works will be consisting of a separate 400 tons line for the French design reactors, and for these assemblies fuel pellets will be supplied by Kazatomprom. The remaining 800 tons will be used as fuel for reactors of other design. The cost of this project is estimated at US$ 170 million. The plant construction is scheduled for 2009-2012; the first output is expected in 2013.
The nuclear fuel cycle includes uranium ore mining and uranium concentrate production, conversion, enrichment, reconversion and production of fuel pellets and fuel assemblies (NFC final product).
Owing to its historical situation, Kazakhstan had only two segments of the NFC – uranium mining and production of fuel pellets based on the Ulba Metallurgical Plant.
As a result of implementation of the program for building-up a complete nuclear fuel cycle and increasing the uranium production, the share of non-primary product export of the Republic of Kazakhstan will practically double.
Further, Kazatomprom makes sure the state to realize its interests in exploration, production and processing rare metals, as well as their export and import. The Decree of the President of the Republic of Kazakhstan dated May 24, 2006 appointed Kazatomprom as a national operator in exploration, production, export and import of rare metals.
Japanese companies have expressed their interest in cooperation in this area. A visit to Japan of the Kazakhstani government delegation headed by the President of the Republic of Kazakhstan Nursultan Nazarbayev in June 2008 gave an impulse to extension of Japanese-Kazakhstani cooperation. As a part of this visit, Kazatomprom and Toshiba Corporation executed a Memorandum for Development of Nuclear Cooperation (including cooperation in the field of rare and rare-earth metal production) on June 20.
Japan proposed to Kazakhstan to participate in implementing its national programs and to become a supplier of products required by Japan’s industry. Meanwhile, it was remarked by the Kazakhstani party that our interest involves building-up new joint production facilities for the high finished product. Japanese side accepted Kazakhstan’s position with regards to this matter.
Meanwhile, it is supposed to arrange for the joint extraction of rare metals, production of concentrates, pure metal and finished product.
Given a ready Japan’s market for such products and availability of hi-techs, Kazatomprom together with Japanese partners is working on an integrated program for exploration, mining, processing and establishment of high-tech production facilities for rare and rare-earth metals in the territory of Kazakhstan.
In the nearest future, the work on establishment of the joint ventures in this area will start.
KAZATOMPROM is the national operator of Kazakhstan on export of uranium and other dual-purpose materials. 100% of shares belong to the Government represented by the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan. Kazatomprom represents a holding managing the following main directions of activity: geology exploration, production of uranium, nuclear fuel cycle products, construction of reactors, NPPs, non-ferrous metallurgy and construction materials production, energy, scientific support of production, personnel training and social support. At present, more than 25 000 people work for the Company. Today Kazatomprom is among the world’s leading uranium-mining companies.
