Newsletter No. 1370
News-Analysis
May 30, 2009
The following newsletter has
been contributed by Christopher Len (Shingetsu
Member No. 82), who is the Coordinator of our Central Asia Contact
Group. Len is based at the Institute for Security and Development
Policy (ISDP), Stockholm, Sweden.
NEW URANIUM MINE IN KAZAKHSTAN
Japan opened a major uranium
mine in Kazakhstan on April 24th, gaining access to alternative
energy supplies from resource-rich Central Asia. Khorasan-1,
located in Kyzylorda region of southern Kazakhstan, is developed
and managed by the Kyzylkum Company, whose shareholders are
the Kazatomprom national company (the Kazakh state uranium company),
a consortium of Japanese energy companies (Toshiba, TEPCO, Chubu
Electric, Tohoku Electric, Kyushu Electric, and Marubeni), and
Canada’s Uranium One. A delegation of Japanese executives,
the head of Kazatomprom, and other officials flew to the remote
location for the official ceremony. Kazakh Prime Minister Karim
Masimov pressed a symbolic button to officially begin production
at the site.
The mine took only three years
to develop, compared to the usual timeframe of up to six years
for mines of this scale. So far, total investment in the project
has reached more than US$432 million, with 13% of this (US$58
million) spent on infrastructure. Khorasan, with uranium reserves
of more than 80,000 tons, will produce about 180 tons of the
commodity this year and reach full capacity by 2014 when it
is due to start yielding 3,000 tons of uranium a year.
Production is focused on meeting
the demands of Japan’s nuclear power industry as Kazakhstan
seeks to supply about a third of Japanese uranium demand by
2014. In total, Japan will get at least 2,000 tons of uranium
from Kazakhstan by 2014. According to Kazuhiro Suzuki, executive
officer of Tokyo Electric, Kazakhstan will export 600 tons of
uranium from the Kyzzylkum venture to Japan. Japan will import
the remaining 1,400 tons of uranium from another project, Baiken-U.
Baiken-U, a venture between Kazatomprom, Toshiba, and the Tokyo
Electric-led companies, will start production next year, reaching
a peak of 2,000 tons in 2014.
Kazakhstan, a former Soviet
republic west of China, has a fifth of global uranium reserves
and it is one of the world’s leading producers of uranium,
after Australia and Canada, which account for half of annual
production. It may become the world’s top uranium exporter
as soon as this year. Its push to develop uranium is part of
a broader strategy to diversify the economy which is heavily
dependent on oil.
Cooperation with Japan also
highlights its determination to pursue a foreign policy that
is less dependent on Russia, currently its biggest trading and
diplomatic partner. Kazatomprom has pursued its ambition to
raise its profile as a global leader, buying 10% of Toshiba’s
US-based Westinghouse nuclear power unit and courting energy
consumers such as Japan and neighboring China.
Japan-Kazakhstan Agreement for Cooperation in the Peaceful Uses
of Nuclear Energy
On March 31st, the Ministry
of Foreign Affairs of Japan announced that the third round of
negotiations to conclude a Japan-Kazakhstan Agreement for Cooperation
in the Peaceful Uses of Nuclear Energy would be held in Vienna
on April 2nd and 3rd. Discussions centered on the contents of
the agreement, aimed at promoting cooperation between Japan
and Kazakhstan in the peaceful uses of nuclear energy. The Japanese
side was led by Tsutomu Arai, director of the International
Nuclear Energy Cooperation Division. The Kazakh side was headed
by Timur Zhantikin, chairman of the Kazakhstan Atomic Energy
Committee.
Purchase of Nuclear-Fuel Rod Assemblies
On April 25th, it was reported
by Bloomberg that Toshiba, Japan’s largest supplier
of reactors, is also in talks to buy nuclear-fuel rod assemblies
from Kazakhstan, but there were no details released on when
an agreement may be signed or how much it may be worth.
POLITICAL CONTACTS
Meeting between Kazakh
Ambassador and Vice President of House of Councillors
On April 8th, Central Asian
News with reference to Kazinform reported that
Kazakh Ambassador to Japan Akylbek Kamaldinov and the Vice-President
of the House of Councilors, Akiko Santo, as well as deputies
who are members of the Japanese Parliamentary League of Friendship
with Kazakhstan, held a meeting. Kamaldinov spoke on Kazakhstan’s
anti-recessionary measures and main provisions of the President’s
Address to the Nation. According to the report, Japan is said
to be interested in Kazakhstan’s international initiatives
such as the Congress of the World and Traditional Religions
Leaders, the Conference on Interaction and Cooperation in Central
Asia (CICA), Kazakhstan’s OSCE chairmanship in 2010, as
well as the activities dedicated to commemorating sixty years
after the first nuclear explosion was detonated on the territory
of Kazakhstan -- and the 20th anniversary of the Semipalatinsk
test site shutting down.
Kazakhstan-Japan Political Consultations Held in Astana
Kazinform reported
on April 11th that political consultations between the Ministry
of Foreign Affairs of the Republic of Kazakhstan and the Ministry
of Foreign Affairs of Japan were held in Astana. Japanese delegation
was headed by Deputy Director-General of European Affairs Bureau
Nobukatsu Kanehara. The discussion included concerns about the
implementation of agreements reached during the visit of the
President Nazarbayev to Japan in 2008, an exchange of views
on collaboration in the trade and investment spheres, the expansion
of the legal basis of bilateral relations, and also the consideration
of further cooperation within the framework of such international
organizations as the UN, CICA, and Central Asia Plus Japan.
The sides also made a settlement on improving the status of
Kazakhstan-Japan Cooperation Committee by integration of this
authority with a number of state bodies of both countries.
Meeting between Kazakh Ambassador and Chairman of Tokyo Chamber
of Commerce and Industry
According to Kazinform,
Kazakh Ambassador Akylbek Kamaldinov met with Chairman of the
Tokyo Chamber of Commerce and Industry Tadashi Okamura on April
22nd to promote trade and economic cooperation between Kazakhstan
and Japan. Kamaldinov spoke about the main directions of socio-economic
development of Kazakhstan, the government’s measures to
overcome the global financial crisis, as well as priority investment
projects in the spheres of agriculture, infrastructure, and
energy. The parties reached agreement to enhance relations between
the chambers of commerce and industry of the two states. They
also agreed to exchange information and hold joint business
seminars aimed at development of partnership relations between
the small and medium businesses of Kazakhstan and Japan.
NEWS BRIEFS
Flights between Kazakhstan
and Japan: Novosti-Kazakhstan reported on
April 13th that Air Astana will open a flight connection between
Kazakhstan and Japan in 2011. Details were not provided.
Cooperation between
Universities: Central Asian News reported
on April 2nd that a Kazakh national university named after Al-Farabi
and Waseda University agreed on a cooperation plan, which will
include academic activities, cooperation in scientific research,
and the training of specialists.
Joint Archaeological
Expedition: On April 28th, Central Asian News
carried an article indicating that Kazakh and Japanese scientists
are planning to organize a joint archaeological expedition to
explore ancient kurgans, or tumuli, in western Kazakhstan. According
to Murat Sdykov, director of the Centre of History and Archeology,
“Archaeologists of the Western Kazakhstan Regional Centre
of History and Archeology and a Japanese university will organize
a joint expedition to explore royal kurgans Kyryk-Oba.”
The expedition is planned for “summer or autumn”
2009.
Japan Red Cross Donation:
Central Asian News reported that the Japanese
Red Cross Society will allocate about US$74,000 to Kazakhstan
for the Kazakh Red Cross Society’s activities. According
to the report, the Japanese society has made such a decision
in view of successful humanitarian aid that the Kazakh Red Cross
Society provides to the Semipalatinsk nuclear tests victims.