Press Release: Kazatomprom and Areva Have Put into Operation

On June 23, 2006, Southern Moinkum mine, KATCO JV LLP, Suzakskii region, South-Kazakhstani oblast, has been put into operation. The break-ground ceremony was attended by the National Atomic Company "Kazatomprom" and French AREVA senior management, officials from South-Kazakhstani oblast akimat and Sozakskii region authorities as well as representatives from other state, public and contracting organizations.

The geological reserves to be developed by this mine amount to over 27,000 t U. The target annual production capacity of 500 t U is to be reached in 2007.

Construction and commissioning of JV KATCO's commercial mine (AREVA 51% and NAC Kazatomprom 49%) have been performed after three years of effective operation of a pilot plant. Pilot works were carried out to determine economic efficiency of the deposit. At first, AREVA would ensure commercial sales of the product. Commercial future would be secured by sustainable orders and observable enhancing quotes for uranium concentrate.

KATCO's project has been included into the plan of uranium industry development in Kazakhstan under the program aimed at meeting the uranium requirements worldwide by increasing the uranium production up to 15,000 tons in 2010, in which the Company plays a major role.

Note

• KAZATOMPROM is the national Kazakhstani operator for export of uranium and other dual-purpose materials. 100% stock of the Company is owned by the Government represented by the Ministry of Energy and Mineral Resources of RK. Kazatomprom is a holding regulating the operation of the six main areas: geological exploration, uranium production, metallurgy industry, power engineering, scientific support of the production and professional retraining and social security. As for the beginning of 2006, the Company has employed over 19,000 persons. The Company is among the three top world uranium producers.
• Being widely represented in the industry of more than 40 countries, AREVA is a world-known power industry expert. The industry group offers process solutions related to nuclear power generation and distribution to their customers. AREVA also develops communication systems, mainly, for telecommunication, information and car industries. 75,000 AREVA's employees contribute to putting into practice high ideas of 21st century such as global access to power, preservation of the planet, responsibility to the future generations.  
• KATCO is a production unit established in 1996 and operating in accordance with the Kazakhstani laws. The office is located in Almaty, production sites are situated at the Moinkum deposit (Yuzhnyi and Tortkuduk), Suzakskii region, South-Kazakhstani oblast.