Newsletter No. 170
January 24, 2006

 

KAZAKHSTAN-JAPAN PARTNERSHIP ON URANIUM DEVELOPMENT

It was announced yesterday that Kazatomprom, the state-owned uranium producer of Kazakhstan, will form a partnership with two Japanese companies to develop the large Mynkuduk uranium deposit in the south of the country. Kazatomprom will have a controlling 65% stake in the project, while the Sumitomo Corporation and the Kansai Electric Power Company will hold 25% and 10% shares respectively. The venture -- to be called APPAK LLP -- is expected to begin production in 2007 and reach maximum levels in 2010.

Readers of Shingetsu Newletter No. 125 will realize that this deal was largely forecasted by Megumi Yamanaka of Bloomberg back in November, and that METI Minister Toshihiro Nikai had issued a statement about an agreement to cooperate on uranium development on November 21st. The announcement of this deal is therefore not a complete surprise.

Kazakhstan is thought to possess about 15% of the world’s uranium reserves.