9 currently operating mines are located in Southern Kazakhstan (uranium provinces 1 and 2). And one conventional mine in the North (province 3).

In May 2006 Eastern Mynkuduk was launched, the latest of Operating Mines. It is the first mine with capacity of 1 thousand tons per year.

These mines will continue producing more than 5 thousand tons a year until 2021, and then decline due to depletion of resources.

Production of these operating mines, as we unfortunately have to say, is already committed.

In response to growing demand of the world nuclear industry, Kazatomprom developed a program to launch 12 new mines. 2 ISL mies will start production later this year; next year – 5 new mines will start, including joint projects with Cameco, Areva, Tenex, and Urasia. 4 mines will start in 2008, plus one new conventional mine in the North.

Intensive work is underway to support these new mines. We are extending industrial infrastructure, building our own Sulfuric Acid Plant, new roads, and power transmission lines.

Optimizing the stuff number and labor efficiency, we have established so-called service-centers, providing individual mines with procurement, geophysics, drilling, transport and communication services, and accounting. So that only mining experts remain at the mining site.

As you can see on this chart, launching the mines under construction, will increase the production to 18 thousand tons per year in 2010, and the peak production of operating mines and mines under construction will be reached in 2015.

In order to ensure stable uranium production volumes in the long run, it is necessary to involve additional resources, which are luckily present in Kazakhstan.

Therefore, Kazatomprom began its long term production development plan and further construction of new mines in Kazakhstan, as we call “potential” mines.

According to this long term program we plan to start additional mines.

The upper side of the graph represents potential supply source from Kazakhstan, subject to demand and attractive economics.

Realization of the plans gives us the following picture.

Kazakhstan will be producing around 27 thousand tons natural uranium per year from 2015 to 2050.

 According to our estimates, only after year 2030 significant investments will be required to sustain then current production level, also investments in conventional mines.

Implementing our plans through 2050, we will extract around 1 point 2 million tons.

With the realization of numerous nuclear programs by many countries, the same or even greater level of uranium production will be required after 2050.

Therefore, during 2015-2040 Kazatomprom will invest over 220 million USD in uranium exploration work in the areas you can see on the map.

Based on our past experience we expect not less than 400 thousand tons additional uranium resources, which will allow for sustaining our production level of 27 thousand tons until year 2090.

 I tried to show you the whole picture of what we are doing, and what we can do. On this chart we want to show contribution of Kazakhstan to the global uranium supply.

We have no doubts that we will implement our plans, as stated above for Operating and Under-construction Mines.

Additional production is possible, but is subject to demand and good economics.

Unfortunately, the deficit is still there, threatening ambitious declared plans for development of nuclear power in the World.

We hope that the other uranium producers from Canada, Australia and other countries will also mobilize to give maximum output, so that we are not creating a bottle-neck in development of nuclear industry in general.