Kazakhstan Opens Kharasan 1 Uranium Mine

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Researched by Industrial Info Resources (Sugar Land, Texas)--According to Kazatomprom (Almaty, Kazakhstan), a state-owned nuclear company, Kazakhstan recently opened the Kharasan 1 uranium mine in Kharasan that will primarily provide feedstock for a nuclear plant in Japan. The mine, which is located in South Kazakhstan, is expected to produce 180 tons of uranium this year and is likely to attain its full designed capacity of 3,000 tons per year by 2014.

It took about three years to develop the mine, and the project has attracted a total investment of about $432 million to date. The mine is expected to be in operation until 2053. The mine is operated by Kyzylkum LLP, a joint venture between Kazatomprom, Uranium One Incorporated (TSX:UUU) (Vancouver, British Columbia), and a consortium of Japanese energy companies. Kazatomprom and Uranium One each hold 30% stakes in the joint venture. The Japanese consortium, comprising Tokyo Electric Power Company Incorporated (TYO:9501) (Tokyo), Marubeni Corporation (TYO:8002) (Tokyo), Toshiba Corporation (TYO:6502) (Tokyo), Chubu Electric Power Company Incorporated (TYO:9502) (Nagoya), Tohoku Electric Power Company Incorporated (TYO:9506) (Miyagi), and Kyushu Electric Power Company Incorporated (TYO:9508) (Fukuoka), owns a majority stake of 40%.

Kazakhstan plans to export about 2,000 tons of uranium to Japan by 2014, of which 600 tons will come from the Kharasan 1 mine. Supply from the Kyzylkum joint venture represents about one-third of Japan's need for uranium. Toshiba is also in talks with Kazakhstan to procure nuclear fuel rods. Details on the estimated value of the deal or when an agreement is likely to be signed have not been disclosed.

Kazakhstan is also planning to build a 500,000-ton-per-year sulfuric acid plant to be used in the in-situ leach (ISL) process of uranium mining. The estimated $212 million project would be built in Kyzylorda in South Kazakhstan. The acid produced will be used in the Kharasan 1 mine. The ISL process of uranium mining involves the dissolution of the ore underground and later extracting the mineral by pumping the solution to the surface through wells. An acute shortage of sulfuric acid led to a lower-than-estimated production of uranium in Kazakhstan in 2007. However, a new sulfuric acid plant was commissioned in 2008, resulting in excess supply. This led to a delay in the construction of the new plant, which was scheduled to begin in March 2008 but is now likely to start in the second half of this year.

Kazakhstan has 15% of the world's uranium reserves and is the third largest producer of uranium, after Canada and Australia. The annual output of uranium increased by 28% in 2008 to 8,521 tons, compared with 6,637 tons in 2007. The country plans to augment its uranium production capacity to reach 15,000 tons per year by 2010.

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