Japan explores importing fuel from Kazakhstan

Japan, the world’s third-largest producer of nuclear energy after the United States and France, plans to launch a feasibility study this month to explore the possibility of importing uranium from Kazakhstan through Russia’s far east.

Sumimoto Corp, a Japanese nuclear energy company, claims the move will substantially cut transportation costs as Kazakh uranium at present goes to St Petersburg and then on to France, the US and Canada for enrichment before reaching Japan.

Japan’s Trade Ministry will finance the six-month study, which envisions the delivery of Kazakh uranium through the trans-Siberian transportation network to Russia’s Angarsk for enrichment and subsequent transit to Japan via the sea port at Vladivostok. If realized, the related agreements might also enable Japan to further reduce its dependence on oil from the Middle East and its 50% dependence on the uranium imports from Canada and Australia. Kazakhstan will also benefit as it will free up its existing export routes to the West through St Petersburg, while reducing the transit time for its uranium exports to Asia.

Russia planned establishing a logistics center in the far east to meet the rapidly growing needs of Asian economies, and cooperated with Kazakhstan through transportation-enrichment swap schemes to reduce transit costs, cutting delivery times from 100 to 25 days in some instances. Russia also has 45% of the world’s enrichment capacity, while Kazakhstan has huge export potential. This makes Japan’s feasibility study a relevant undertaking.

The study comes at a time of rising global demand for uranium. There are already 53 nuclear power plants being constructed around the world, with about 500 more planned by 2030. Kazakhstan, therefore, would benefit from the possible transit and enrichment agreements ensuing from the feasibility study. Kazakhstan’s estimated uranium resources, the second-largest in the world, constitute 19% of global reserves. Continued…

Read more: Asia Times

Nuclear cooperation agreements

A host of nuclear energy bilaterals and agreements have been announced in recent days including documents signed during a visit by President Dmitry Medvedev of Russia to Kazakhstan. Other countries including France, Morocco, Mexico, South Korea, Saudi Arabia, Ukraine and the USA have been working on working together.

Presidents Medvedev of Russia and Nazarbayev of Khasakstan discuss cooperation (Image: Presidency of Russia)

Sergey Kiriyenko, director general of Russian state nuclear energy company Rosatom, and Vladimir Shkolnik, president of Kazakh state company Kazatomprom, signed two documents during the presidential visit: a memorandum on integration and cooperation, and a statement on draft central administration for a proposed joint uranium enrichment plant.

The memorandum on integration and cooperation, according to Rosatom, reaffirms the two companies’ commitment to work together to create an integrated, multi-tiered joint Russian-Kazakh company which would be able to position itself on the global nuclear fuel market. The second statement is on the draft central administration for plans for Kazakh involvement in a Russia’s Ural Electrochemical Plant. Recent reports have suggested that Kazakhstan might be about to take a stake in a Russian enrichment plant.

New group for USA-Ukraine

A group on civil nuclear power cooperation was one of three new commission groups announced by US secretary of state Hillary Clinton and Ukrainian foreign minister Kostatyn Gryschenko during the second session of the US-Ukraine Strategic Partnership Commission, held in Kiev. The group will look at “further possibilities for cooperation in civil nuclear power”, as part of efforts to modernise Ukraine’s nuclear power industry and diversify its fuel supplies, according to a joint statement released by the Ministry for Foreign Affairs of Ukraine.

Saudi government authorises French accord

The Saudi Arabian cabinet has given the go-ahead for the signature of a draft nuclear cooperation agreement with France. The cabinet decision was announced in a statement carried by the national news agency, SPA, but gave no details of when a signing might take place. Saudi Arabia is one of several Middle Eastern states looking into setting up a nuclear power program, and recently appointed the Finland- and Swiss-based Pöyry consultancy firm to help it to define its strategy for nuclear and renewable energy applications.

France-Morocco

Meanwhile, a cooperation agreement on civil nuclear power was one of ten accords signed at a high-level Franco-Moroccan summit. Other areas of cooperation between the two governments included renewable energies (specifically, solar and wind) and sustainable development. Morocco has tentative plans to build a nuclear power reactor, and signed a nuclear cooperation agreement with France in 2007. The same year, France’s Areva signed an agreement with Morocco’s Office Cherifien des Phosphates (OCP) to investigate recovery of uranium from Moroccan phosphates.

South Korea to help train Mexican engineers

South Korea has agreed to help train Mexican nuclear professionals at a meeting of ministers from the two countries’ energy departments during a state visit to Mexico by South Korean President Lee Myung-bak. According to the Korean Ministry of Knowledge Economy, South Korea will help to Mexico to develop its nuclear workforce as well as working on joint research and development projects. According to the ministry, Korea plans to build a close relationship with Mexico, which already operates two nuclear reactors at Laguna Verde and is looking into the possibility of building more. This sentiment was echoed by the South Korean president in a joint statement issued by the two countries, in which he highlighted nuclear power and nuclear plant construction as areas in which Korea is interested in strengthening bilateral cooperation with Mexico. A more specific cooperation agreement is likely to be drawn up later this year.

JV for Inter RAO and Worley Parsons

Russian energy company Inter RAO, which is 57% owned by Rosatom, has announced it has signed documents establishing a joint venture with Australian engineering company Worley Parsons to work on the transfer of power engineering technology into the Russian market and to promote Inter RAO’s projects oversees. Inter RAO will hold 51% of the joint venture, with Worley Parsons holding the remainder.

Source: World Nuclear News

China and Kazakhstan signs cooperation agreement

China and Kazakhstan have agreed to build and finance a gas pipeline and deepen cooperation in atomic energy, giving Beijing greater access to Astana’s vast uranium resources.

The agreements were reached during the just concluded visit of Chinese President Hu Jintao to Astana.

As per the agreements, Kazatomprom, the state run Kzhak nuclear firm, would supply uranium to China Guangdong Nuclear Power Corporation (CGNPC). The details of the agreement were not disclosed.

This is Hu’s second visit to Kazakhstan in six months.

During his visit on June 12, Hu held talks with his Kazakh counterpart Nursultan Nazarbayev on ways to enhance the strategic partnership between the two countries.

Both the countries have also signed a new deal to build and finance a natural gas pipeline.

Under the agreement, the two countries will build a 1,400-km gas pipeline. It will link with an existing gas pipeline running between China and Central Asia.

Source: Press Trust of India

ARMZ to take hold of Uranium One shares

Russia’s AtomRedMetzoloto (ARMZ) and Toronto- and Johannesburg-registered Uranium One have signed an agreement that will propel Uranium One into the top five global uranium producers and see ARMZ take a controlling interest in the company. Meanwhile, Russia may be about to open an enrichment plant to part-foreign ownership.

Zarechnoye yellowcake (Image: ARMZ)

ARMZ will contribute to the deal its interests in two Kazakh in-situ leach uranium mines – its holdings of 50% in the Akbastau mine and 49.7% in the Zarechnoye uranium mine – plus $610 million in cash. In return, the mining division of Russia’s Rosatom state nuclear corporation will receive 356 million common shares in Uranium One, which along with ARMZ’s existing 23.1% holding will give it an interest of at least 51% in the company.

The addition of ARMZ’s assets to Uranium One’s existing projects will see the company’s production in Kazakhstan increase by about 60% from its current 10 million pounds U₃O₈ per year to 16 million pounds U₃O₈ per year, at consolidated cash costs of less than $20 per pound, according to Uranium One. Akbastau is contiguous to the Karatau operation in which Uranium One has a 50% holding, giving scope for management and operating systems synergies.

Uranium One CEO Jean Nortier said the deal would position the company “to be among the world’s top 5 uranium producers by 2011,” while ARMZ director general Vadim Zhivov said that developing and operating projects in Kazakhstan was a priority for the Russian company. “We are confident that Rosatom’s controlling interest in Uranium One will allow it to further strengthen its excellent relationship with its partners in Kazakhstan and to open up new promising avenues for cooperation,” he said.

The transaction is subject, among anti-trust and other conditions, to Kazakh regulatory approvals, approval under Canadian investment law, clearance by the US Committee on Foreign Investment, and approvals from both the Toronto and Johannesburg stock exchanges, but is expected to be finalised by the end of 2010. It also contains various protections covering the possible future sales of ARMZ’s common shares in the company.

The board of Uranium One will be reduced from thirteen to nine, with five independent directors, two of whom will be nominated by ARMZ. Ian Telfer will continue as chairman and Jean Nortier as CEO, and ARMZ will also be entitled to nominate three additional board members. It is not yet clear how Uranium One’s Japanese shareholders, which together hold 20% of the company through Japan Uranium Management Inc, will be affected by the transaction.

Kazatomprom to buy into Russian enrichment? Rosatom is planning to sell a stake in one of its uranium enrichment plants to Kazakh national nuclear corporation Kazatomprom, according to reports in the Russian and Kazakh media. According to Interfax, Rosatom departmental deputy chief Vladislav Korogodin told reporters that Rosatom was prepared to sell Kazatomprom up to 49% one of its enrichment plants, either the Urals Electrochemical Combine or the Electrochemical Plant. The Moscow Times and Interfax both cited Kazatomprom chief Vladimir Shkolnik as saying that he hoped the deal would be completed before the end of September. According to press reports, it would appear that the deal could supersede the 50-50 joint venture set up by Kazatom and Tenex in 2008 to finance a 5 million SWU/yr increment to the Angarsk plant. Shkolnik also confirmed that he hoped that Russia and Kazakhstan would sign an intergovernmental agreement on the construction of nuclear power plants in Kazakhstan by the end of 2010. The comments were made during the ATOMEXPO-2010 forum being held in Moscow.

Uranium One also confirmed that it has recently sold “substantially all” its shares in Paladin Energy, and will use the proceeds to help fund the cash outflows needed for the proposed transaction with ARMZ. The company had recently acquired about 3% of Paladin, which has uranium interests in Australia and Africa. Uranium One sold its Dominion uranium mine in South Africa in April, but it has US holdings in Utah and Wyoming which are likely to come on line in 2011, and is bringing the Honeymoon mine in South Australia into production at the end of this year in a joint venture with Mitsui of Japan.

Earlier this year, Canadian-based Khan Resources, currently embroiled in legal wranglings over its uranium mining licences in Mongolia, rejected a hostile takeover bid from ARMZ in favour of a bid from Chinese company CNNC Oversees Holdings. The CNNC bid subsequently fell through.

Source: World Nuclear News

India to sign nuclear deal with Kazakhstan

India and Kazakhstan are all set to sign a civilian nuclear agreement that will facilitate Indian investments in mining sector and supply of uranium from Kazakhstan.

Speaking at a joint press conference after holding the foreign ministers’ delegation-level talks, the External Affairs Minister, S.M. Krishna, on Wednesday said: “I am confident that an inter-governmental agreement on Civilian Nuclear Energy cooperation will be finalised soon.”

“This sector has immense possibilities for bilateral cooperation, including for supply of uranium ore, investment by Indian companies in mining in Kazakhstan, construction of nuclear reactors and others,” Krishna added.

Earlier, Krishna, who is on a three-day visit to Kazakhstan, held discussions with his counterpart Kanat B Saudavayeb on the issue of civilian nuclear cooperation.

Later, Lata Reddy, Secretary East, Ministry of External Affairs, informed that the talks are in final stage and it will be signed soon. But she didn’t confirm the timing of the deal with the Central Asian country.

Kazakhstan is the world’s second largest producer of uranium after Australia.

Australia has refused to supply uranium to India saying it cannot supply the strategic mineral to countries like India, which have not signed the nuclear non-proliferation treaty (NPT).

On cooperation in the oil sector, Lata Reddy said that the government was happy with the progress of discussions on India’s participation in the Satpayev oil block.

India had already signed an umbrella agreement for this purpose during President Nazarbayev’s visit to New Delhi in January 2009.

“We have been assured of an internal agreement between the Kazakhstan oil ministry and the Indian Petroleum ministry after which an agreement would be signed between ONGC Videsh and the Kazakh oil company,” Reddy added.

Reddy disclosed that India, having great interest in crude oil import from Kazakhstan, can provide helping hand in oil exploration too. By Ravi Shankar(ANI)

Source: New Delhi News

India: Nuclear energy cooperation on the agenda during Krishna’s visit to Kazakhstan

Cooperation in the field of civilian nuclear energy, including uranium mining and setting up and construction of nuclear power plants, are among a host of issues on the agenda during External Affairs Minister S M Krishna’s visit to Kazakhstan beginning tomorrow.

The two sides will specifically discuss progress on ongoing negotiations on inter-governmental agreement on civil nuclear cooperation when Krishna meets Kazakhstan President Nursultan Nazarbaev and hold talks with Foreign Minister Kanat Saudabayev.

During the three-day visit, Krishna will be accompanied by a delegation of business leaders who will look for economic opportunities with focus on sectors like hydro-carbons.

“Talks will be held in the fields of agriculture, energy, civil construction, mining, Information Technology and a host of other issues,” External Affairs Ministry spokesperson Vishnu Prakash told reporters here today.

Both the countries have an ambitious and forward looking agenda and are looking towards deepening this cooperation, he said.

A member of the department of atomic energy will also be part of the delegation.

An inter-governmental agreement on civilian nuclear energy is under discussion between the two sides, Ajay Bisaria, Joint Secretary (Eastern Europe) in MEA, said adding it is a broad-based agreement in line with that of Russia.

It envisages cooperation in a complete range of nuclear-related activities which includes fuel, uranium mining and setting up and construction of nuclear power plants.

“A draft has been floated and we expect further discussions to take place. It may not be signed during the visit but certainly discussions will take place,” Bisaria said.

Discussions would also be held in the Hydro-carbon sector, he said.

Kazakhstan is keen on India’s private as well as public sector investments, the official added.

Kazakhstan has initiated an accelerated innovation industrial development programme under which they are planning more than 170 major projects for industrialising the country.

“It is a multi-billion dollar project and they have said they are keen to see active Indian participation,” the spokesperson said.

Source: Zee News / PTI

Kazakhstan and S.Korea sign MoU agreement

The signing of a memorandum of understanding (MoU) on cooperation in the field of nuclear energy between state-run South Korean and Kazakh corporations came as the countries’ presidents called for greater collaboration in uranium mining and reactor development.

KazAtomProm, Kazakhstan’s nuclear energy company, announced that it had signed a MoU on cooperation with Korea Electric Power Corp (Kepco) and Korea Resources Corp (Kores). The document, it said, “lays ground for mutually beneficial cooperation between the parties in the peaceful use of atomic energy and further development of the nuclear power industry in both nations.”

The MoU was signed on 22 April by KazAtomProm chairman Vladimir Shkolnik, Kepco president and CEO Kim Ssang-Soo, and Kores president and CEO Kim Shin-Jong.

In addition, KazAtomProm and Kores signed a separate MoU on cooperation in joint research, mineral exploration and mining operations in Kazakhstan.

Kazakhstan has been supplying uranium to South Korea since 2005, covering nearly one-quarter of fuel demand for South Korea’s nuclear power reactors, according to KazAtomProm. Twenty reactors currently provide almost 40% of South Korea’s electricity.

The Kazakh and Korean presidents agree to further nuclear cooperation (Image: Office of the President of South Korea)

The signing of the MoU came as Kazakh president Nursultan Nazarbayev met with Korean president Lee Myung-bak during a three-day visit to Korea. During their meeting, the presidents discussed issues including bilateral cooperation in the energy and resources sectors. They discussed the possibility of joint projects to mine uranium and develop nuclear reactors.

According to a statement from Korea’s presidential office, Nazabayev and Lee agreed to “proactively seek out how to work together on the joint exploration of uranium mines and joint research on the System-integrated Modular Advanced Reactor (SMART), a Korea-developed model of small- and mid-sized nuclear reactors.”

Source: World Nuclear News

Korea and Kazakhstan to sign cooperation agreement

The leaders of South Korea and Kazakhstan agreed Thursday to cooperate for the peaceful use of nuclear energy, paving the way for Korea’s exports of commercial reactors to the Central Asian country.

In a summit at Cheong Wa Dae, President Lee Myung-bak and his Kazakh counterpart Nursultan Nazarbayev discussed the possibility of joint projects to mine uranium and develop nuclear reactors, the presidential office said.

They shared a common understanding on the “great potential for cooperation between Seoul and Astana for the development of nuclear energy,” the office said in a press release.

The two countries agreed to seek an active partnership for the joint development of uranium mines and research on the System-Integrated Modular Advanced Reactor (SMART), an advanced 330-megawatt pressurized water power reactor invented by South Korea.

The accord is a major accomplishment for the country’s nuclear industry following Korea’s signing of a $20 billion contract last year to build nuclear plants in the United Arab Emirates.

Korea aims to garner $400 billion in nuclear plant deals by 2030, nurturing the sector into a major economic growth engine.

Kazakhstan is the world’s second largest holder of uranium reserves, while Korea is the sixth largest consumer of the material. Seoul is currently operating 20 nuclear reactors nationwide, meeting nearly 40 percent of its total energy needs.

Korea and Kazakhstan agreed to make joint efforts to promote safe and peaceful use of nuclear energy worldwide, Cheong Wa Dae said.

Lee and Nazarbayev expressed satisfaction at the progress of joint projects to construct a thermal plant near Balkhash Lake and explore the Jambil oil block in the Caspian Sea.

They also decided to expand long-term partnerships on various fronts such as infrastructure, petroleum, the defense industry, information and technology, transportation, health care, agriculture and tourism.

The Kazakh leader arrived in Seoul on Wednesday for a three-day visit.

Upon arrival, he attended a ceremony to mark Korea’s designation of the Year of Kazakhstan in 2010.

He also met with National Assembly Speaker Kim Hyong-o, Prime Minister Chung Un-chan and business leaders here.

Source: The Korea Times

Former KazAtomProm head facing prison time

Moukhtar Dzhakishev, the former president of Kazakh national nuclear company KazAtomProm, has been found guilty by a court in Astana of misappropriation and bribery, according to an Interfax report. “A prosecutor asked for 14 years in prison from the court. The court agreed and imposed this very punishment on him, that is, 14 years in a high security penitentiary, and has also deprived him of the right to occupy government positions for seven years,” said Nurlan Beisekeyev, Dzhakishev’s attorney. The court also ruled that Dzhakishev should be stripped of the Order of Kurmet, a state award. Beisekeyev said that Dzhakishev would appeal the sentence. The court also sentenced Talgat Kystaubayev, Dzhakishev’s bodyguard, to five years in prison and stripped him of his military rank of major. Dzhakishev was arrested in May 2009 and charged with embezzling state shares in uranium mines in collusion with Moukhtar Ablyazov, the former chairman of BTA, one of Kazakhstan’s top banks. Kazakh law enforcers have since added new accusations, including money-laundering and bribe-taking. Seven other KazAtomProm officials have also been charged with corruption. Dzhakishev has pleaded not guilty to all the charges.

Source: World Nuclear News

Kazakhstan and Japan signs cooperation agreement

Japan and Kazakhstan have signed an agreement to cooperate in the peaceful uses of nuclear power. Meanwhile, Romania’s president has said the country is open to cooperation with Kazakhstan, including in nuclear energy.

The agreement was signed on 2 March in Tokyo by Akylbek Kamaldinov, Kazakhstan’s ambassador in Japan, and Katsuya Okada, Japan’s minister of foreign affairs. The signing of the agreement follows agreements reached during a visit by Kazakhstan’s President Nursultan Nazarbayev to Japan in 2008.

‘The agreement is the basic document for the development of cooperation between the two countries in the field of nuclear energy, implementation of which will further strengthen the strategic partnership between Kazakhstan and Japan,’ the Kazakh ministry of foreign affairs said in a statement.

Japan’s ministry of foreign affairs said, ‘The signing of this agreement will make possible a stable uranium supply from Kazakhstan and ensure that material and related technologies are legally transferred from Japan to Kazakhstan for the peaceful use of nuclear energy, which is expected to strengthen cooperation in the field of peaceful uses of nuclear energy between the two countries.’

Japan and Kazakhstan signed a memorandum of cooperation in nuclear energy during an August 2006 visit to Kazakhstan by then Japanese Prime Minister Junichiro Koizumi. In April 2007, a number of high-level agreements on energy cooperation were signed with Japan. These included some relating to uranium supply to Japan, and technical assistance to Kazakhstan in relation to fuel cycle developments and nuclear reactor construction. KazAtomProm is keen to move from being a supplier of raw materials to selling its uranium as fabricated fuel assemblies. It said that it aimed to supply 40% of the Japanese market for both natural uranium and fabricated fuel from 2010 – about 4000 tU per year. Negotiations then commenced for a bilateral nuclear cooperation agreement between Kazakhstan and Japan.

In August 2007, Toshiba announced that it will buy a minority interest in the Kharasan uranium project in Kazakhstan, becoming the fifth Japanese company to participate in the project.

In January 2008, KazAtomProm signed an agreement with Japanese utility Kansai to provide components of nuclear fuel for Kansai’s 11 nuclear power reactors in Japan. Under existing alliances, a facility at the Ulba complex to make full fuel assemblies is due to be completed in 2011-2012, with Toshiba-Westinghouse acting as technical partner, while Ulba could also expand to carry out conversion of Kazakh-mined uranium for the enrichment stage that comes before pellet fabrication.

Romania seeks cooperation

Meanwhile, Romanian President Traian Basescu has said that Romania could be a partner in the industrial development of Kazakhstan.

“Categorically, both countries need to develop their bilateral relationship. Romania can benefit from energy resources and the raw materials required for the production of nuclear fuel for nuclear reactors,” he said in a Financiarul.ro report. Basescu added, “On the other hand, Romania can be a partner in the industrial development of Kazakhstan, in the area of oil equipment, nuclear equipment and energy equipment in general.”

Source: World Nuclear News

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