Press Release: Areva/Cogema and Kazatomprom Launches their Joint Project for Uranium Production In Kazakhstan
29.04.2004On April 29, 2004, at 4.00 a.m. (Almaty time), in Paris, France, President of AREVA/COGEMA, Mrs. Anne Lauvergeon, and President of KAZATOMPROM, Mr. Moukhtar Dzhakishev, signed an agreement for launching the commercial stage of the joint project for uranium production in Kazakhstan.
Following three years of successful operation of the uranium production pilot plant at the Moinkum deposit in south Kazakhstan, JV KATCO (AREVA 51% and KAZATOMPROM 49%) will be further working over the detail designing, then on construction of commercial plants which would provide over 250 jobs. First product output is expected at the end of 2005 to be followed by progressive increase of the production capacity up to 1500 tons per year. At first, AREVA will ensure sale of all the product.
Development of the deposit provided by NAC KAZATOMPROM will require investment of the order USD 90 million financed by AREVA. It would be in compliance with AREVA's strategy to diversify sources of uranium supply. Economic future of the project is guaranteed owing to stable purchase orders and improvement of quotes for uranium concentrates.
Activities organized in such a way will much contribute to prosperity of the region where uranium is the main of natural resources. JV KATCO's project is included in the program of uranium industry development in Kazakhstan where Kazatomprom plays a key role. The uranium industry is expected to intensively develop by the end of this decade.
Having 900,000 tons of uranium in reserves, the Republic of Kazakhstan takes second place after Australia among three countries, including Canada, with a huge potential of uranium reserves. To date, the reserves of the deposit developed by the JV KATCO are estimated at 43 700 tones of uranium.
Notes
·Being widely represented in the uranium industry of over than 40 countries, AREVA/COGEMA is a world-known expert in power engineering. This group offers to their customers technological solutions for atomic energy production and power distribution. It also develops communication systems, mainly, for telecommunication, information and automobile industries. 75 000 employees of AREVA contribute to implementing high goals of XXI century: general access to power, preservation of the planet, responsibility to future generations.
·Established in 1997, CJSC NAC Kazatomprom is a state-owned company of the Republic of Kazakhstan. Main activities of the company include exploration, production of natural uranium (In 2003, NAC KAZATOMPROM produced 2952,4 tU compared to 2726,5 tU in 2002, i.e. an increase by 8.3% compared to the previous year) and fuel manufacturing for nuclear power plants. Further, it supplies power, heat and water to Mangistauskaya oblast (western Kazakhstan). The company also offers various products and services to high-technology industries (tantalum, niobium and beryllium alloys and derived products). Consolidated net income of NAC Kazatomprom subject to internal turnover for the year 2003 amounted to KZT 8 460 million that means doubling of the company's income compared to the last year. The total number of employees is 15 640 persons.
·KATCO is a company established in 1996 and operating under the laws of the Republic of Kazakhstan. The company has an administrative office in Almaty and production divisions at the Moinkum deposit (Yuzhnyi and Tortkuduk sectors) in Suzak region, 250 km north-east from Shymkent in the South-Kazakhstan oblast.
