NAC Kazatomprom JSC informs on strategic partnership agreement with Chinese energy companies CNNC и CGNPC

/IRBIS, November 7, 08/ - National atomic company Kazatomprom JSC (NAC Kazatomprom JSC, Almaty) disseminated today the press release of the following content: Quotation start October 31, 2008 agreement on strategic partnership between NAC Kazatomprom JSC and Chinese energy companies China National Nuclear Corp (CNNC) and China Guangdong Nuclear Power Co (CGNPC) was signed in Astana. Agreement consists of several parts: long-term supply of natural uranium for nuclear energy needs of China, joint development of uranium deposits in Kazakhstan, production of fuel for China's nuclear power plants and a new direction - construction of a nuclear power plant in China. "Thus, NAC Kazatomprom engages in a completely new type of activity - construction of nuclear power plants", - said the President of Kazatomprom Mukhtar Dzhakishev on November 6, at a press conference in Almaty. One of the key conditions of the agreements is not only participation in construction of nuclear power plants, but supply of fuel. Kazatomprom has become the first to gain access to private fuel market of China" - stressed Mr. Dzhakishev. In return, China Guangdong Nuclear Power Corporation (CGNPC) will receive shares in joint ventures for development of Kazakh deposits Irkol (Kyzylorda obl., production capacity of 750 tons of U3O8 a year) and Semizbay (Akmola obl., 500 tons) and China State Nuclear Industry Corporation ( CNNC) - Zhalpak (South Kazakhstan region, 750 tons). Doing so, 51 % share of the emerging mining JV will belong to Kazatomprom, and 49 % to Chinese partners. China has officially confirmed construction of 56 nuclear power plants. The head of Kazatomprom said the final cost of nuclear power plants accounted for 50 %. The global market for construction of nuclear power plants M. Dzhakishev estimates at $1.5 trl. To accelerate the implementation of joint Kazakh-Chinese projects in the field of atomic energy Kazatomprom plans to open its representative office in Beijing. Mukhtar Dzhakishev also reported that November 5 a meeting with leaders of all subsidiaries and joint ventures and structural units of NAC Kazatomprom ended. The impact of global financial crisis on the activities of Kazatomprom was examined. As a world-class company Kazatomprom has developed various scenarios of development in deterioration external environment. However, the meeting concluded that it was now that Kazatomprom has a competitive advantage, as it has extensive experience in crisis conditions. "9 out of 11 years, we have lived and worked in adverse conditions, which have become familiar environment. Our management is better prepared, and we have more crisis experience, than many Western companies", - said M. Dzhakishev. In the face of uncertainty, Kazatomprom projects become even a more attractive investment. In addition, the number of potential consumers of Kazatomprom products did not decline, but only increased. Kazatomprom considers various development scenarios: in the absence of external funding, with its limitations, or with the expensive financing. The development of such scenarios - it is one of the aspects of management in crisis. According to Dzhakishev, a negative scenario - unavailability of external sources of funding - is hypothetical. "But, because they are still possible, on each such occasion, we must have a script. If an event happens, and there is no scenario - then developing a plan during the crisis will be too late", - said M. Dzhakishev. He also reminded that recently Kazatomprom entered the national welfare fund "SamrukKazyna", which guaranteed an opportunity to finance new projects. "For Kazatomprom a step to into SamrukKazyna - is risk decreasing", - said M. Dzhakishev. In conclusion, the head of national atomic company said: "We have no worries about the prospects for the company, the external situation will not affect either production or social plans". Quotation end [2008-11-07]