Toshiba to Participate in Uranium Mines Project in Republic of Kazakhstan
Monday, August 20th, 2007
Toshiba Corporation announce that the company would participate in the Kharassan uranium mines project, a new development project in southern Kazakhstan promoted by Kazatomprom (herein after, KAP), a Republic of Kazakhstan state-owned enterprise. Toshiba’s participation is in line with its policy of enhancing its nuclear energy business.
The Kharassan project is being promoted by two KAP-related companies, Kyzylkum LLP and Baiken-U LLP. Test excavation of uranium ore is due to start within the year, and output is expected to reach approximately 5,000MTU (metric tons of uranium) a year by 2014. Japanese companies have acquired indirect ownership interests in Kyzylkum and Baiken-U and will have the right to obtain up to an aggregate annual quantity of 2,000MTU.
Toshiba will acquire an indirect ownership interest in Kyzylkum and Baiken-U by taking a 22.5% stake in a holding company that has part ownership and control of Kyzylkum and Baiken-U. This move will give Toshiba the right to a maximum of 600MTU from the Kharassan each year. The holding company is currently jointly owned by Marubeni Corporation, The Tokyo Electric Power Company, Chubu Electric Power Co., Inc. and Tohoku Electric Power Co., Inc. Toshiba will be the first power systems manufacturer to participate in the project, which will allow the company to contribute to the stable supply of uranium concentrate for nuclear power plants in Japan.
Japan and Kazakhstan signed a memorandum of cooperation in nuclear power in August 2006. In April this year, a Japanese government-private sector mission, led by Mr. Akira Amari, Minister of the Ministry of Economy, Trade and Industry, visited Kazakhstan and confirmed to deepen the cooperative relations between the two countries, including securing uranium resources for Japan and technical cooperation. Toshiba participated in the delegation, and signed a memorandum on mutual cooperation with KAP at that time.
By cultivating cooperative relationships with other key players, Toshiba aims to complete its transition to become a world leader in the nuclear power industry.