Russia to complete forming uranium co. by mid-2008

Russia's top civilian nuclear official said Thursday the country will complete the formation of a state-owned uranium mining enterprise in mid-2008.

Uranium Mining Company (UGRK) was founded by state-run nuclear fuel producer TVEL and uranium trader Techsnabexport on November 2 to develop uranium deposits inside and outside Russia, and to import uranium.

"We will complete the transfer of uranium producing assets to the UGRK trust management within several months until the end of this year and to the full ownership in mid-2008," Sergei Kiriyenko said.

UGRK head Alexander Shkarovsky said in December that under the company's development plan, UGRK will produce around 29,000 metric tons of uranium per year by 2020, including 18,000 in Russian enterprises.

The company's plans include the construction of new uranium-producing joint ventures in former Soviet republics and other countries.

During the first stage, the company will develop a strategy for uranium production in Russia and abroad, after which UGRK will take over trust management of the production assets of TVEL and Techsnabexport, including ventures in Siberia, Kazakhstan and Uzbekistan. In the third stage, the assets will be transferred to the company's balance.

Russia's uranium production accounts for around 8% of global output. Up to 90% of profits in the country's nuclear sector come from nuclear fuel, power and service exports, according to Kiriyenko, but Russia seeks to import more uranium.

Russia plans to meet 60-70% of its uranium demand domestically by 2015.

SOURCE: RIA Novosti

DATE: May 31, 2007

Topics: Uranium, Russia