Kazatomprom Exceeds Uranium Production Targets by 9% in First Half of 2009

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Researched by Industrial Info Resources (Sugar Land, Texas)--Kazakhstan's state-owned nuclear company Kazatomprom Atomic Company (Almaty) has announced that the company's uranium production target for the first half of this year has been exceeded by 9%. Total uranium production for Kazakhstan during the period was more than 6,000 tons, which is 57% greater than the corresponding period in 2008. Plans for the second half of 2009 call for a production level of 8,000 tons.

Kazatomprom obtained positive results for other products as well. Production of tantalum and niobium was 6% more than the planned output, reaching 102.3 tons in the first half of 2009. Beryllium production, despite decreased global demand, stood at 629 tons during the period.

The summary report released by Kazatomprom covering the first half of 2009 also reveals that new mines and uranium-producing facilities have been put into production. Mines at the Khorassan-1 and Irkol deposits are now operational, and pilot production has begun at Baiken-U LLP and Akbastau JSC. Work is progressing on the Khorassan-2 and Semizbai mines, together with a planned production increase from the South Inkai deposit and new refinery plants at the Karatau LLP facility.

In order to assist in the mining of uranium, Kazatomprom is continuing with the construction of two sulfuric acid plants in the Zhanakorganskiy region and Stepnogorsk. Sulfuric acid is used for mining uranium using the in situ leaching (ISL) method. Unlike conventional mining, in which the ore is excavated and brought to the surface for processing, ISL relies on pumping the acid through underground ore deposits. The acid, now containing dissolved uranium, is recovered, and the uranium is processed from the acid solution.

The Zhanakorganskiy plant has a planned production capacity of 500,000 tons per year and is scheduled to start limited production in 2011, reaching full production by 2012. The external infrastructure work, including road and rail links and power-transmission lines, is nearly complete. The smaller Stepnogorsk plant, with a planned capacity of 180,000 tons per year, is scheduled to begin production next year. The facility is awaiting delivery of equipment from Italy.

Kazatomprom hopes to cover eventually all stages of nuclear fuel production, and to this end is working with Cameco Corporation (NYSE:CCJ) (Saskatoon, Saskatchewan) in a joint venture for the production of uranium hexaflouride, which is used extensively in the uranium-enrichment process that produces fuel for nuclear reactors and nuclear weapons.

In other international connections, Kazatomprom is also working with Areva SA (EPA:CEI) (Paris, France) on a joint project to transfer fuel-fabrication technology from Areva to Kazatomprom. The agreement is scheduled to be signed during the visit of French President Nicolas Sarkozy to Kazakhstan in October.

Kazakhstan is tied with Australia as the world's second-largest uranium producer. Topping the list is Canada, which accounts for 21% of global uranium production, with Kazakhstan and Australia each producing 19% of the global supply. Niger, with a production share of 10%, has moved into fourth position in the uranium-producing league, ahead of Russia, which produces just 8% of the world's output.

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