AREVA-COGEMA (France) and NAC Kazatomprom CJSC start the project on uranium extraction with total investment volume of $90 m.

/IRBIS, Ranida Gabdeyeva, April 29, 04/ - Kazatomprom NAC CJSC (Almaty), whose bonds are traded in Kazakhstan stock exchange's (KASE) official "A" listing category, today spread press-release, which says that Anne Lauvergeon, president of Areva/Cogema group, and Mukhtar Djakishev, president of "Kazatomprom" CJSC NAC, have inked an agreement on launching industrial phase of their joint uranium extraction project today, on April 29, in Paris. After three years of successful operations of a pilot uranium production plant at Moinkum field in South Kazakhstan, "Katko" JV (Areva 51% and Kazatomprom 49%), will further work on the design, then on the construction of industrial installations, which will provide more than 250 jobs. The first industrial production output is planned in the late 2005 with a progressing production growth up to 1500 tons per annum. During the first period Areva will provide commercial realisation of the entire production volume. The development of the field, provided by "Kazatomprom" CJSC NAC, will require around $90 million investments, financed by Areva group. It complies with the Areva intention to realise its strategy - to diversify the uranium supply sources. The economic future of the project is secure due to the stable demand and the observed improvement of uranium concentrate quotations. The activities thus organised will promote the well-being of the region, where the uranium is the main natural rich. The Katko project is a part of uranium production development project in Kazakhstan, in which Kazatomprom group plays the central part. An intense growth of this industrial area by the end of the current decade is expected, the report observes. Kazakhstan with its volume of 900,000 tons of uranium is on the second place after Australia among the countries, including Canada, with a huge potential of uranium reserves. Today the field reserves, developed by Katko JV, are estimated in 43,700 tons of uranium. Areva/Cogema is a world famous expert in energy and it is widely represented in the industries of more than 40 countries. The industrial group offers its clients technological solutions for the atomic energy production and electric power distribution. It also develops communication systems, mainly for telecommunications, IT and automobile industry. The number of company employees is 75,000 persons. "Kazatomprom" NAC established in 1997 is a state company of RK. The main types of activities are survey, natural uranium extraction and production of fuel for nuclear power stations. According to results of 2003 "Kazatomprom" NAC extracted 2,952.4 tons of uranium against 2,726.5 tons in 2002, which made a growth by 8.3% against the previous year. Besides, it supplies Manghistau oblast with energy, heat and water. It also supplies various products and services for high technologies (products and alloys of beryllium, tantalum and niobium). The consolidated net income of "Kazatomprom" NAC with its internal turnover taken into account was 8,460 million tenge in 2003, increasing twice the company profits in comparison with the last year. The total number of employees is 15,640 people. Katko was established in 1996 and acts in compliance with the Kazakhstani legislation. Its administrative office is in Almaty and production sections ("South" and "Tortkuduk") are located at the uranium field Moinkum in Souzak district, 250 kilometres North East of Shymkent, South Kazakhstani oblast. [2004-04-29]