Press Release on Sulfuric Acid Deliveries to Kazakhstan

The problem of sulfuric acid shortfall at uranium mining facilities in Kazakhstan will be solved by January 1, 2008.

Apart from sulfuric acid deliveries by main suppliers: Kazakhmys and Kazzink corporations which fully perform their contractual obligations, Kazatomprom concluded contracts with new suppliers from Uzbekistan. It is expected that about 10 thousand tons of sulfuric acid will be supplied by them to the end of 2007. The subsidiary uranium-mining companies of Kazatomprom are carrying on negotiations with Russian Enterprises such as Uralskiy Mining-Metallurgical Plant and Atompromtex for delivery of additional quantities of sulfuric acid to Kazakhstan from beginning of 2008. This will allow completely improve the situation with sulfuric acid deliveries to Kazak uranium-mining facilities. However the possibility that Kazatomprom may do some adjustments in uranium production as of first half of 2008 should be taken into account.   

In May 2008, in Balkhash town (Karagandinskaia area) there will be put on production the largest sulfuric acid plant of Kazakhmys Corporation with capacity of 1 mln 200 thousand tons of sulfuric acid per year. Supply of sulfuric acid from this plant will make possible for Kazatomprom to implement entirely the planned programs for uranium deposits development in the territory of Kazakhstan.

Sulfuric acid is main chemical reagent for production of uranium by in-situ leaching method (ISL). This reagent is used in production of leaching solution, by which ions of natural uranium are selectively transferred into pregnant solution in place without lifting the ore to the surface. This method is performed by drilling of wells through uranium ore bodies, supply of solution into uranium ore bodies, lifting of uranium containing solutions to the surface and extraction of uranium in sorption ion-exchanging units, addition of acid into depleted solutions and injection into subsurface.

The method of In-Situ Leaching (ISL) used by Kazatomprom is distinguished by high ecological safety and profitability in comparison with the conventional method of production. With ISL method the geological structure of subsurface formations is not changed since there is no excavation of ore masses.