NAC Kazatomprom to manage Stepnogorsk mining-chemical plant

/IRBIS, Natalya Kuznetsova, September 28, 04/ - National Nuclear Company Kazatomprom (NAC Kazatomprom CJSC, Almaty), whose bonds are traded at Kazakhstan stock exchange (KASE) under official "A" listing category, distributed press-release devoted to recently signed agreement with Kazsabton Ltd. (Cyprus). According to the agreement, Kazsabton Ltd. transfers asset management right over Stepnogorsk mining-chemical plant to Kazatomprom including: mining-smelting plant, sulfuric acid workshop, Shantobe ore-mining department and other subsidiary productions. These productions are united under newly created Stepnogorsk mining-chemical company. Former director of Kazatomprom refining plant, doctor (PhD) Pirmatov Ashmurat Azimovich was appointed as head manager of the created company. The press release stated that NAC Kazatomprom had already designed development program for Stepnogorsk mining-chemical company. According to the program, Stepnogorsk capacities will be loaded with uranium shipped from South mining departments of Kazatomprom. In future, company plans to change production profile of the plant. The program also includes implementation of crisis measures proved to be effective in rehabilitation of Mangistau nuclear energy planty and other companies of Kazatomprom. First of all, it is an implementation of internal self-financing system, cut of capital expenditures, introduction of end-to-end financial and human resource management system, all-round automation of the production. No funds have been planned to invest into the company in light of NAC Kazatomprom program to reach 5-time increase pf uranium production by 2010. This program if realized will place the national nuclear company among world of uranium production. Another possibility, an offer of third party financial investor is currently being analyzed. The latter proposed a single pre-condition for cooperation - current and prospected maintenance of Kazatomprom management over the company. Total volume of necessary investment is estimated around $75 m. NAC Kazatomprom is 100% state-owned national nuclear operator. 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). NAC Kazatomprom participates in joint ventures with French Areva, Canadian Kameko, Russian and Ukrainian companies. [2004-09-28]