Press Release: The Antidumping Investigation with The American Corporation USEC Completed

Yesterday, on May 2, 2002, we received the information that the Republic of Kazakhstan represented by NAC 'Kazatomprom' has won the antidumping process with the American Corporation USEC owing to which all restrictions for Kazakh natural uranium marketing in the USA were removed.

In 1991, the US government avoiding that mass sales of low-priced uranium by CIS countries result in lose of market control and, protecting interests of the US uranium producers initiated the antidumping investigation. During the period of investigation (beginning from November 1991), import of uranium from the former USSR countries to the USA was prohibited. After the dissolution of the USSR, the antidumping duties were amoved to all CIS countries. In 1992, the European Union countries joined to the duties system. The measures consisted in the system of quoting and fixing of particular prices (including for services for isotopic enrichment), which were lower by 20% in average than the world prices (during the period 1991-2000).

In October 1992, the government of Kazakhstan entered into the 'Agreement suspending the antidumping investigation on uranium from Kazakhstan' which allowed to deliver uranium to the US market at free prices and quotas fixed in the USA. The US government reconsidered repeatedly the delivery conditions; the quotas were changed from 1.2 to 1.65 thousand tones. In 1998, due to the uranium world prices fell to below the price stipulated in the Agreement of 1995 (US$12 per pound of UO2 or US$29.4 per 1 kg), quoting of Kazakh uranium export was suspended.

In November 1998, the US Department of Commerce resumed the antidumping investigation owing to which in July 1999 there was determined that Kazakh uranium sales do not cause the material injury to the US industry. All restrictions on the Kazakh uranium imports were lifted.

Since December 1999, the USA Producers solicited twice the US Department of Commerce for the law proceeding resumption. And twice NAC 'Kazatomprom' won this case in the US Court of International Trade.

In May 2001, the US Uranium Producers appealed to the Court of Appeal. For today, the antidumping process has been completed.