Press Release: Plans and Perspectives of MAEK-Kazatomprom Development

05.05.2003

Since May 1, 2003, a new enterprise MAEK-Kazatomprom Ltd. is involved into the structure of National Atomic Company Kazatomprom. We would like to remind that on April 30, 2003 in accordance with tender results, Kazatomprom procured a property complex of the republic state enterprise Mangistauski Nuclear Power Combine (MAEK) which includes heat power plants HPP-1, HPP-2, heat power station HPS-3, reactor BN-350, distillate production plant (DPP) and other auxiliary units assuring the enterprise technological process continuity.

Under the Company's expert's evaluations, strategic enterprise of Mangistauskaia oblast is in a sad state: equipment is worn out, after Kazakhstan became independent, maintenance works have been conducted at the enterprise just to support production. A cause of that situation is not only in often change of managers and obsolete system of labor organization, but also in systematic non-payments of large facilities and population of Mangystauskaia oblast for electricity, heat and water received from MAEK.

At present, to govern the new enterprise, Kazatomprom's management delegated the best specialists of the company. Vladimir A. Ivanov, who previously filled positions of Deputy Director of Ulbinski Metallurgical Plant, Deputy Director of Mining Department of Kazatomprom, is appointed a Director of MAEK-Kazatomprom Ltd.

On base of greatest experience of management in crisis conditions, Kazatomprom plans to take arrangements to restore the enterprise till the end of 2003:

- to overhaul boiler equipment at HPP-1;

- to overhaul two turbines at HPP-1 and HPP-2;

- to finish repair of 1st power generating unit at heat station-3 till the end of June 2003;

- to repair 2nd power generating unit of heat station-3;

- to overhaul six water- desalinating installations;

- to replace obsolete automated control system by technological process of water preparation at distillate production plant;

- to repair all accommodation spaces, including showers, cloakrooms, canteens;

- to repair bus fleet for employees delivery to places of work;

- to insert a new program of accounting of payment accumulation from population for services which will make that process more flexible and useful;

- further decommission and preparation of reactor BN-350 for isolation according to plan approved by Ministry of Energy and Mineral Resources;

- to prepare a sportive team of MAEK-Kazatomprom Ltd for participation in sports days annually held by Kazatomprom.

At present, Moukhtar Dzhakishev, President of Kazatomprom is in Aktau to know the personnel and visit sites of MAEK- Kazatomprom Ltd - BN-350, HPP-1, distillate production plant, HPS-3, recreation center 'Ivushka', familiarize with calculation center operation.

Also, during his staying in Aktau, Mr. Dzhakishev will meet with management of city administration of Mangistauskaia oblast and Aktau city to discuss matters of cooperation of local executive offices and MAEK-Kazatomprom Ltd in the sphere of restoration of strategic facility and plan of works for maintenance of equipment, working and accommodation areas of MAEK-Kazatomprom Ltd.

Public relations service of Kazatomprom

Public relations service of MAEK-Kazatomprom Ltd.

May 05, 2003

Almaty-Aktau


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