The transaction for the purchase of the uranium mining assets of Effective Energy N.V. by Atomredmetzoloto OJSC (Uranium Holding ARMZ) has been approved by governmental agencies of Kazakhstan. The parties have been permitted to finalize their deal by the Ministry of Energy and Mineral Resources and the Agency for Protection of Competition of Kazakhstan.

Thus, Rosatom State Nuclear Energy Corporation has consolidated 100% of the uranium mining assets owned by Russia in the territory of Kazakhstan in the framework of the inter-governmental Russian-Kazakh complex program of cooperation in the field of peaceful use of nuclear energy, which is being implemented jointly with Kazatomprom on the instruction of the presidents of Russia and Kazakhstan.

The purchase of the assets of Effective Energy N.V. has made Uranium Holding ARMZ the second biggest foreign uranium miner working in Kazakhstan in terms of the amount of uranium reserves.

‘This deal will enlarge the successful cooperation of Russia and Kazakhstan in the field of uranium mining and will strengthen the energy capacities of our countries. Uranium Holing ARMZ carries out uranium projects in three continents and the purchase of highly efficient enterprise in Kazakhstan will help the company to further diversify its activities and reserves’,  said Director General of Uranium Holding ARMZ Vadim Zhivov.

Note:

Uranium Holding ARMZ (JSC Atomredmetzoloto) is part of JSC Atomenergoprom, a holding consolidating the civil assets of Russia’s nuclear industry.

Jan 23 2009 Uranium Holding ARMZ concluded a contract for the purchase of the assets of Effective Energy N.V., holding 50% and 25% of the Russian stakes in Qaratau Ltd and Aqbastau JV JSC. As a result, Atomredmetzoloto has increased the Russian stake in its three joint ventures with Kazatomprom – Zarechnoye, Aqbastau and Qaratau – to 50% in each. The final beneficiary of the deal is Rosatom State Nuclear Energy Corporation.

Under the Complex Program of Russian-Kazakh Cooperation in the Field of Peaceful Use of Nuclear Energy, ARMZ and Kazatomprom are supposed to mine 6,000 tons of uranium a year in the territory of Kazakhstan with the target being 8,000 tons.

Qaratau and Aqbastau develop the 2nd and the 1st, 3rd and 4th sections of Budyonovskoye deposit, respectively. The reserves and resources of the two companies total 49,800 tons and 84,000 tons of C1, C2 and P1 categories, respectively. Big amount of resources in combination with the practice of stocking the greater part of them is a guarantee of long-term operation of the deposits.

The total capacity of the companies is 5,000 tons of uranium a year (2,000 and 3,000 tons at Qaratau and Aqbastau, respectively). This index is supposed to be attained in 2015. Qaratau is already operating on a commercial basis: in 2008 it produced 650 tons of uranium. In 2009 Qaratau and Aqbastau are planning to produce 1,400 tons and 300 tons of uranium, respectively. By 2010 the companies are planning to jointly produce 3,000 tons of uranium (2,000 tons – Qaratau and 1,000 tons — Aqbastau). The high growth in output and low costs are expected to help the company to show high efficiency and to quickly repay investments.

Press service of JSC Atomenergoprom