3/23/2003: KAZAKHSTAN AND SOUTH AFRICA TO COOPERATE IN THE FIELDS OF NUCLEAR TECHNOLOGY AND URANIUM PRODUCTION
On 22 March 2003, Kazakhstani Minister of Energy and Mineral Resources Vladimir Shkolnik met with South African Deputy Minister of Minerals and Energy Susan Shabangu. The main topic of the discussion between the two officials was the promotion of bilateral cooperation in the fields of nuclear technology and uranium production. In addition, Shkolnik offered to provide South Africa with geological expertise and assistance in building small hydroelectric plants. According to Shabangu, both countries have significant experience to share with each other.
[Elena Butyrina, "Kazakhstan i YuAR vyrazili zhelaniye sotrudnichat v oblasti yadernykh tekhnologiy i uranovoy promyshlennosti," Panorama, No. 12, 23 March 2003; in Integrum Techno, http://www.integrum.ru.] {Entered 4/14/2003 AD}

1/27/2001: VOSTOCHNYY MINE TO BE RECLAIMED
According to Marat Kaftaranov, director of Uranlikvidrudnik, the Kazakhstani state enterprise charged with the reclamation of inactive uranium mines, the Vostochnyy open pit-mine in Southern Kazakhstan will be reclaimed during the period 2002 - 2004.  Elevated radiation levels in the surrounding Zhambyl Oblast have caused concern among residents, who complain about health problems.  Although a 1997-1998 environmental survey revealed gamma radiation of up to 500 microroentgens per hour (far above normal) at the closed Vostochnyy mine, Kaftaranov insists that radiation levels are too low to affect public health.  An earlier 1992 plan to seal the mine failed due to a lack of funds.
[Express-K, 27 January 2001; in "Concern Over Radiation Threat Posed by Abandoned Kazakhs Uranium Mines," FBIS Document CEP20010212000236.] {Entered 3/19/2001 NA}
 
12/15/2000: KAZAKHSTAN TO INCREASE URANIUM PRODUCTION IN 2001
On 15 December 2000 Kazakhstani Deputy Prime Minister and Minister of Energy and Mineral Resources Vladimir Shkolnik announced that Kazakhstan plans to increase uranium production by 30% each year through 2005. In 1999, Kazakhstan produced 1,588 metric tons of uranium, a 16.3% increase from 1998.
[Interfax, 15 December 2000; in "Kazakhstan's Uranium Output to Rise 30 Percent in 2000," FBIS Document CEP2001215000182.] {Entered 2/21/2001 NA}
 
7/28/2000:  RUSSIA, KYRGYZSTAN, AND KAZAKHSTAN AGREE TO FORM THREE-WAY URANIUM VENTURE
In July 2000, Kyrgyzstan, Kazakhstan, and Russia agreed to form a three-way venture, in which uranium concentrate from the Zarechnoye deposit in Kazakhstan's Zhambyl Oblast is to be processed at the Kara-Balta Ore Mining Combine of Kyrgyzstan for use in Russian nuclear power plants.[1]  The venture will include Kara-Balta, Kazakhstan's Kazatomprom, Russia's Atomredmetzoloto, and possibly Tajikistani facilities in the future.[1,2]  Under the proposed agreement, Kara-Balta will obtain a concession to the Zarechnoye uranium deposit, where uranium will be extracted using the in-situ leaching process.  The uranium slurry will be processed into U₃O₈ at Kara-Balta.  The venture plans to begin production by the end of 2001 and expects initial output of 500 to 700 metric tons (t) per year, increasing eventually to 1,600t to 1,700t, according to Kyrgyzstani Minister of Industry and Trade Arzymat Sulaimankulov.[3]  
 
According to Russian Minister of Atomic Energy Yevgeniy Adamov, the venture will initially operate on the basis of debt exchange. Russia's TVEL Joint Stock Company is in debt to Ulba Metallurgy Plant for nuclear fuel rods and Kazakhstan owes money to Kyrgyzstan for electricity.  Under the three-way venture, Kazakhstani energy consumers will pay Ulba, Ulba will continue to supply nuclear fuel rods to TVEL, TVEL will pay for new border control systems in Kyrgyzstan, and Kyrgyzstan will continue to supply electricity to Kazakhstan.[2,4]
Sources:
[1] "Russia, Kyrgyzstan, Kazakhstan to Form Uranium Mining JV," Interfax, 31 July 2000.  
[2] Vladimir Kucherenko, "Kirgiziya vstupayet v 'uranovyy proyekt' s Rossiyey," Rossiskaya gazeta, No. 242, 23 December 2000; in Universal Database of Russian Newspapers, http://news.eastview.com/. 
[3] "Kyrgyzstan, Russia Close to Creating Uranium JV," Interfax, 13 April 2001.
[4] Natalya Pereverten, "Moskva vozvrashchayetsya v Tsentralnuyu Aziyu," Nezavisimaya gazeta online edition, http://www.ng.ru/printed/cis/.../5_returning.html, 11 April 2001.{Entered 4/20/2001 KB}

7/21/2000:  JOINT VENTURE INKAI TO PROCEED WITH $2 MILLION TEST MINE
On 21 July 2000 Joint Venture Inkai reported that it has signed a resource use agreement with the government of Kazakhstan, allowing the JV to proceed with plans to construct a $2 million test mine at the Inkay (Inkai) site.  Production could begin in 2004 and could eventually reach 2.6 million pounds per year.
["Cameco/Kazatomprom to Assess Potential of Kazakhstan Uranium Project," Cameco Website, http://www.cameco.com/.../news_releases/index.html, 21 July 2000.]{Entered 8/8/2000 KB}
 
7/15/2000:  KAZATOMPROM TO INVEST $17 MILLION IN YUZHNYY MOINKUM
On 15 July 2000 Kazakhstanskaya pravda announced that Kazatomprom plans to invest $17 million in the new Yuzhnyy Moinkum uranium deposit in South Kazakhstan Oblast.
[Lyubov Dobrota, "Opredelyayet uran," Kazakhstanskaya pravda online edition, http://www.kazpravda.kz/e/e07_15.html, 15 July 2000.]{Entered 7/31/2000 KB}
 
5/15/2000: KAZATOMPROM PLANS TO DEVELOP NEW URANIUM DEPOSITS IN 2000
On 15 May 2000 Interfax reported that Kazatomprom will begin production at the new Yuzhnyy Moinkum uranium deposit in South Kazakhstan Oblast later this year.  According to Kazatomprom President Mukhtar Dzhakishev, Kazatomprom also plans to start mining the Akdala and Yuzhnyy Karamurun uranium deposits in South Kazakhstan Oblast this year. South Kazakhstan Oblast is already the site of Kazatomprom's Tsentralnoye and Stepnoye mines, which contain 48% of Kazakhstan's entire uranium reserves.  According to Kazatomprom, proven uranium reserves in Kazakhstan total about 900,000MT, and proven plus probable reserves total about 1.6 billion MT.
["Kazakhstan to put new uranium deposits on stream," Interfax, 15 May 2000.] {entered 5/22/00 NA}
 
3/2000:  SABTON PLANS TO INVEST $100 MILLION IN KAZSABTON OVER FIVE YEARS
According to KazSabton President Boris Sheinkman, Israel's Sabton plans to invest up to $100 million over five years in KazSabton, the former Tselinnyy Mining and Chemical Combine, for activities including the development of new deposits in North Kazakhstan.  KazSabton produces polymetallic ores, uranium oxides, oleum, battery acid, heat, and electricity.  Kazatomprom exports yellowcake produced by KazSabton.  Sheinkman reported that of the 272 million tenge ($2.8 million as of 16 April 1999) in back wages Sabton had promised to pay by April 2001, 80 million ($702,000 as of 16 April 1999) had been paid as of 1 January 2000.  See the 16 April 1999 entry below for information on terms of sale to Sabton.
["Israeli Company Invests in Kazakh Uranium Plant," Nuclear Engineering International, 31 March 2000; in Lexis-Nexis Academic Universe, http://web.lexis-nexis.com.]{Entered 7/31/2000 KB}
 
2/4/2000: KAZAKHSTAN INCREASED URANIUM PRODUCTION 16.3% IN 1999
On 4 February 2000 the Kazakhstani Ministry of Energy, Trade, and Industry reported that Kazakhstan produced 1,588MT of uranium in 1999, a 16.3% increase from the previous year.  Kazakhstan plans to increase further its uranium production to more than 3,000MT in 2002. This increase will be made possible through the development of several new uranium deposits in South Kazakhstan Oblast, including Akdala, Yuzhnyy Moinkum and Yuzhniy Karamurun. Kazatomprom also plans to mine fluorite ore at the Karazhal deposit in East Kazakhstan Oblast and to set up production of hydrofluoric acid, which is used for the production of uranium, tantalum, and beryllium at the Ulba Metallurgy Plant.
["Kazakhstan upped uranium production 16.3% in 1999," Interfax, 4 February 2000.] {entered 5/19/00 NA}
 
7/30/99:  KAZATOMPROM FORECASTS MAJOR GROWTH IN URANIUM PRODUCTION
According to Kazatomprom President Mukhtar Dzhakishev, Kazatomprom forecasts that its uranium production will rise 37 percent in 1999. Speaking to local journalists on 30 July 1999, Dzhakishev said that in the first half of 1999, production of uranium ore increased by 31.4 percent over 1998, yellowcake production grew 41.5 percent,  fuel pellet production was up 16.7 percent, and production of beryllium and uranium rose 14 percent. New joint ventures with Cogema and Cameco will bring three new mines into production, leading to further increases next year.[1]  Kazatomprom plans to invest $8-9 million in uranium production in 1999.[2] Commenting on the 13 July 1999 ITC anti-dumping ruling, Dzhakishev said that Kazakhstani uranium would now be accessible to all US companies, but at higher prices. Although Kazakhstan was unlikely to export uranium to the United States in 1999, Dzhakishev said, Kazatomprom will start negotiating with US customers in the near future.[1]
Sources:
[1] "Kazakhstan forecasts 37% growth in uranium production," Interfax, No.2, 30 July 1999.
[2] "Kazkah Enterprise to Restart Tantalum Production," Interfax-Kazakhstan, No. 2, 7 October 1999. (entered 8/11/99 FW; updated 11/9/99 CC}
 
7/13/99: KAZAKHSTAN WINS ANTI-DUMPING SUIT
The United States International Trade Commission (ITC) unanimously ruled on 13 July 1999 that Kazakhstan did not dump uranium on the US market in 1991-1998.  The ITC further found that sales of Kazakhstani uranium at below market prices do not negatively impact US companies, and therefore there is no reason to impose anti-dumping penalties on Kazakhstan.  The ruling brings to conclusion an anti-dumping suit brought by US uranium producers in 1991, suspended in 1992, and resumed at the end of 1998.[1] The ITC further stated that even if Kazakhstan were to export 100% of its natural uranium production to the United States, the volume of uranium imports would not rise to a "significant or injurious level." The ITC also ruled that under a US Department of Commerce (DOC) decision that enrichment confers origin of the uranium product, uranium enriched in the USSR and shipped to Kazakhstan before the USSR dissolved in 1991 is not a product of Kazakhstan for purposes of the antidumping determination. In a footnote to the ruling, the ITC noted that the same DOC decision does not indicate that conversion of yellowcake or uranium hexaflouride into uranium oxide in Kazakhstan would confer Kazakhstani origin on the product.  Noting these findings, the US Enrichment Corporation (USEC) was expected to ask DOC to clarify the origin of Soviet-produced enriched uranium product in Kazakhstan. If DOC declares this product to be Russian in origin, it would be subject to the Russian uranium suspension agreement.[2]
Sources:
[1] "Kazakhstan vyigral antidempingovoye delo o postavkakh urana v SShA," Interfax, No.1, 14 July 1999.
[2] Michael Knapik and Elaine Hiruo, "ITC Issues Decision in Kazakhstan Case," Nuclear Fuel, 9 August 1999, pp. 2, 12. {entered 8/11/99 FW}
 
4/16/99:  TSELINNYY COMBINE SOLD TO ISRAELI FIRM
The Tselinnyy Mining and Chemical Combine was sold on 16 April 1999 to Sabton Limited, a subsidiary, registered in Cyprus, of the Israeli-owned Africa Israel Investment Ltd.  The purchase price was 36 million tenge ($316,000 as of 16 April 1999). Sabton, which outbid Kazatomprom for the Tselinnyy combine, must pay 320 million tenge ($2.8 million) in back wages and debts, compensate Kazatomprom for its expenses on financing the plant prior to the sale, and present a long-term investment plan. Previous attempts to sell the combine in January and February 1999 failed due to lack of interested buyers.
["Kazakhstan sells one of largest uranium plants in CIS," Interfax, No.3, 16 April 1999.]{entered 5/17/99 FW}{Updated 7/31/2000 KB}
 
2/23/99:  CANADIAN FIRM PLANS TO NAME NEW DEFENDANTS IN TSELINNYY BREACH OF CONTRACT AFFAIR
On 23 February 1999, Canada's World Wide Minerals Ltd. announced that it had named Nukem Inc. as an additional defendant in the lawsuit it filed with a Washington, DC court against the Kazakhstani government and Kazakhstan's uranium production and marketing agent Kazatomprom.  The suit was filed following Kazakhstan's unilateral cancellation in July 1997 of the Canadian firm's contract to operate the Tselinnyy Mining and Chemical Combine (TsGKhK) in Stepnogorsk. (See entry for 6/2/98.)  World Wide Minerals maintains that Kazakhstan granted uranium marketing rights to Nukem in violation of an agreement with the Canadian company.  World Wide Minerals has also notified international companies known to handle, process, or purchase uranium concentrates from Kazakhstan that they may be named as defendants as well.  Among the notified companies are Cameco Corporation, ConverDyn (a subdivision of AlliedSignal, Inc.), British Nuclear Fuels, Comurhex (a subdivision of the company Cogema), Synatom, Cogema, and General Electric.  World Wide Minerals, which seeks compensation for damages, referred in its notifications to the Racketeering Influenced and Corrupt Organizations (RICO) Act, claiming the companies can be charged using this act.
["Kanadskaya World Wide Minerals Namerena Rasshirit Spisok Otvetchikov Po Delu O Kazakhstanskom Urane," Interfax, 23 February 1999.]  {entered 3/8/99 RC}
 
1/14/99:  KAZATOMPROM SIGNS CONTRACT WITH TVEL
In Moscow on 14 January 1999, Mukhtar Dzhakishev, President of Kazatomprom, signed a contract with the Russian nuclear fuel company TVEL.  The contract is intended to ensure orders for the Ulba Metallurgical Plant.   The talks also ensure further cooperation between Russia and Kazakhstan.  Dzhakishev said in an interview that Kazatomprom's goal is to make Kazakhstan a world leader in the mining and production of uranium by the year 2005.  Kazatomprom predicts that the sale of world stockpiles of uranium will continue until 2010, with a peak in sales occurring in 2001.  This will be followed by a decline, and prices will accordingly begin to rise.  While the rest of the world reduces its production of uranium, Kazakhstan will increase the scope of its mining by four to five times. Other plans include the sale of more highly enriched uranium products, the manufacture of new types of fuel for nuclear reactors, and the joint manufacture of fuel assemblies with Russian ventures.  Kazatomprom is also moving toward privatization, but has not yet been privatized due to its current financial difficulties.  To make Kazatomprom an attractive investment, talks are being conducted to get credit from western banks, and there are now several proposals for credit in amounts from $25 to $70 million.  Once received, the credit is to be used in the creation of new jobs, new mines, and new production at the Ulba Metallurgical Plant.  Kazatomprom expects to turn a profit this year after a long period of operating at a loss.
[Oleg Khe, "Mukhtar Dzhakishev, NAK Kazatomprom:  V 2005 godu Kazakhstan dolzhen stat odnim iz liderov v mire po dobyche i proizvodstvu urana," Panorama, No.2, 15 January 1999.]  {Entered 5/10/99 RC}
 
11/10/98: KAZAKHSTAN PLANS TO TERMINATE URANIUM SUSPENSION AGREEMENT
On 10 November 1998 Kazakhstan formally announced its plans to terminate the uranium suspension agreement with the US Department of Commerce (DOC). The termination will become effective in 60 days, but Kazakhstan indicated that it might rescind its decision if DOC offers an SWU quota (see entry below).  If DOC investigators conclude that Kazakhstani uranium was sold in the United States at less than a fair market price, the case may be moved to the International Trade Commission (ITC), and an antidumping duty order may be issued by DOC if the ITC finds that US industry has been hurt by uranium imports from Kazakhstan.  Bolar Nurgaliyev, the Kazakhstani ambassador to the United States, expressed regret in a letter that accompanied Kazakhstan's formal notice of intent to terminate the suspension agreement. He wrote that the agreement had to be terminated for commercial reasons, such as the inability of Kazakhstan to sell uranium to third countries.
["Kazakhstan Tells DOC It Intends To Terminate Suspension Agreement; USEC Says U Sales Off," NuclearFuel, Vol.23, No.23, 16 November 1998, pp.14-16.] {Entered 3/18/99 CF}
 
11/2/98: KAZAKHSTAN SEEKING SWU QUOTA
NuclearFuel reported on 2 November 1998 that Kazakhstan was seeking a quota to be able to import to the United States 360,000 SWU per year from 1999 to 2004. Under the Kazakhstani proposal, USEC will have the right of first refusal to buy Kazakhstani SWU. The Oil, Chemical, and Atomic Workers (OCAW) union did not receive the proposal well, but might agree to the import of up to 100,000 SWU for processing and re-export only. According to Tom Wilner from Shearman & Sterling, who represents Kazakhstan, USEC is strongly opposed to any SWU quota.  On a separate note, USEC and an ad hoc committee of uranium mining companies asked the US Department of Commerce to review its decision to allow importation of 20MT of Kazakhstani enriched uranium for processing by a General Electric fuel plant. Kazakhstan may decide in November 1998 to terminate its suspension agreement, Kazakhstani officials say, if the SWU proposal is rejected, the 20MT agreement is rescinded, and no counteroffers are made.
[Michael Knapik, "Kazakhstan Looking for SWU Quota, HEU Feed Talks Held in Paris, Spot U Price Declines," NuclearFuel, Vol.23, No.22, 2 November 1998, pp. 1, 10-12.] {Entered 3/18/99 CF}
 
8/27/98: KAZAKHSTANI PRIME MINISTER SEEKS MORE URANIUM EXPORTS TO US
Kazakhstani Prime Minister Nurlan Balgimbayev, on 27 August 1998, asked visiting US Senator Richard Lugar to help gain permission for the free export of uranium from Kazakhstan to the United States. Although Kazakhstani President Nursultan Nazarbayev secured an understanding on uranium exports during his visit to the United States in November 1997, the issue is now being considered by the US Department of Commerce.
["Kazakhstan prosit SShA uskorit resheniye voprosa o zakupkakh kazakhstanskogo urana," Interfax-Kazakhstan, 4 August 1998.]{Entered 9/14/98 by FW}
 
8/4/98: KAZAKHSTANI PRIME MINISTER SUPPORTS JOINT URANIUM VENTURE WITH RUSSIA
Kazakhstani Prime Minister Nurlan Balgimbayev said at a press conference in Almaty on 4 August 1998, that the creation of a joint venture between Kazatomprom and the Russian company TVEL would be "a good decision, as technologically uranium production in Kazakhstan is indissolubly linked with Russia."  Balgimbayev also said that Kazakhstan should seek uranium sales markets in countries with Soviet-made nuclear reactors, particularly in Eastern Europe and Ukraine.
[Interfax-Kazakhstan, 4 August 1998; in "Kazakhstan to Cut 1998 Budged Expenditures by 25 Percent," FBIS-SOV-98-218.]{Entered 9/14/98 by FW}
 
6/2/98: CANADIAN FIRM SUES KAZAKHSTAN FOR BREACH OF TSELINNYY CONTRACT
World Wide Minerals, a multinational corporation headquartered in Toronto, Canada, is suing the Kazakhstani government over Kazakhstan's unilateral cancellation of its contract to operate the Tselinnyy Mining and Chemical Combine (TsGKhK) in Stepnogorsk. The suit, filed in the US district court for the District of Columbia, asks for $220 million in damages. [1, 2] The cancelled contract, signed in October 1996, assigned to World Wide's Kazakhstani subsidiary, KazUran, the responsibility for managing TsGKhK.  The contract also gave World Wide Minerals an option to purchase a 90 percent equity interest in the combine.[2]  In return addition, the contract requires that World Wide Minerals invest $150 million in TsGKhK over five years.[3]  KazUran invested $20 million in 1997, according to KazUran Vice President Yuriy Mover [3, 5], and restarted production of uranium at TsGKhK on 21 March 1997, planning to produce 1.8 million lbs of U3O8 in 1997.[4] Although the plant produced 50 MT of uranium for export to the United States, the Kazakhstani government refused to issue KazUran a license to export the uranium produced at Tselinny. Meanwhile, local authorities demanded that KazUran assume responsibilty for city infrastructure and services, including street cleaning.  In addition, workers staged a strike on 14 July 1997 to protest unpaid wages.[5, 7 ,8] The government demanded that KazUran pay $1.3 million in wage arrears on 25 July 1997, and when this payment was not received, the Kazakhstani State Property Committee cancelled the contract with World Wide Minerals and transferred management of the Tselinnyy combine to the state-owned Kazatomprom on 1 August 1997.[6,7] World Wide Minerals and KazUran appealed to the State Property Committee to reverse its decision, but when this appeal failed, World Wide brought action in the US court.  KazUran Vice President Igor Anchevskiy contended that KazUran was hamstrung by fierce "under the table" competition, and that Russian and other companies did everything they could to prevent his firm from operating normally in Kazakhstan.[3]
Sources:
[1] Bulat Yerezhepov, "Delo ob urane," Kazakhstanskaya pravda, 2 June 1998, pp. 1,3.
[2] Saidkasym Kiyampur, "Kazakhstan rvet kontrakty," Russkii telgraf, no. 086, 20 May 1998, http://www.mosinfo.ru:8080/news/rtf/9805/data/0520-73.html.
[3] Vladimir Ardayev, "Kanada grozit Kazakhstany mezhdunarodnym arbitrazhem," Izvestiya, 9 August 1997, p. 3.
[4] UI News Briefing, no. 97/13, 26 March-1 April 1997, http://www.uilondon.org/nb/nb97/nb9713.htm.
[5] "WWM uranium deal collapses," Nuclear Engineering International, September 1997, p. 6.
[6] "HEU feed talks continue; DOE sale notice appears; WWM to press Kazakh government," NuclearFuel, 11 August 1997,  p. 13.
[7] "Interfax Financial Report," Interfax, 11 August 1997.
[8] Khabar Television, 14 July 1997; in "Uranium Mines at Standstill as Workers Protest Wage Arrears," FBIS-SOV-97-199. {Entered 9/14/98 by FW}
 
4/22/98: KAZAKHSTANI BANKS LEND CAPITAL TO URANIUM INDUSTRY
Narodniy Bank and Kazkommertsbank, two Kazakhstani commercial banks, agreed to lend $62.4 million to the Kazakhstani uranium industry via Kazatomprom, the state-owned nuclear industry company.  The Tselinnyy Mining and Chemical Combine will receive $23.5 million, the Ulba Metallurgy Plant $20.4 million, and Kazatomprom uranium mines $18.5 million. Kazatomprom President Kadyr Baikenov said that the loans will "help to revitalize the uranium industry, to integrate it with the Russian uranium industry." Baikenov also noted that the new capital should generate profits of $130 million in 1998, and that the uranium sector's output could rise to $180 million by 2003. The terms of the loan are "soft," according to Baikenov, with 18 percent interest over a period of six years and a three-year grace period on the principal. The banks have received $200 million worth of collateral, including $150 million in commodity output and contracts of the Ulba plant, assets of the Tselinny plant, uranium reserves at Tselinny, and three Kazatomprom uranium mines. Ulba plant director Yuriy Tuzyev said that he understood the concerns of Ulba shareholders over the large collateral, but that like Baikenov he saw "no alternative to long term credits and development programs to alleviate the industry's crisis."
[Interfax, 22 April 1998.] {entered 9/18/98 FW}
 
2/23/98: KYRGYZSTANI-KAZAKHSTANI URANIUM VENTURE PUT ON HOLD
The uranium processing joint venture that Kazakhstan and Kyrgyzstan agreed to on 15 August 1997 (see abstract below) has been indefinitely postponed, due to the Kyrgyzstani State Property Committee's failure to approve the deal.  However, the appointment of new leadership for the State Property Committee in 1998 could expedite a final decision on the issue.
[UI News Briefing NB98.08-4, 26 February 1998] {entered 9/18/98 FW}
 
12/8/97: USEC ASKS FOR CONTROLS ON KAZAKHSTANI URANIUM
On 8 December 1997 USEC and an ad hoc commission of US uranium producers filed a complaint with the US Department of Commerce (DOC) on a proposed amendment to the Kazakhstan suspension agreement.  They stated that the amendment would allow brokers and uranium traders to make deals that would hurt the US uranium industry.  They wanted stricter controls over uranium from Kazakhstan imported into the United States for processing and subsequent re-export.  The amendment allows for up to six million pounds of U3O8 to be imported to the United States for 36 months.  USEC and its domestic supporters fear that Nukem and its partner General Electric will take advantage of the situation and arrange to import large quantities of enriched Kazakhstani uranium.  Such shipments of uranium could reduce domestic utilities' demand for uranium for enrichment.  The DOC has already approved one such shipment.
[Michael Knapik, "Market Impact of Moscow Announcement Uncertain; U.S. Rejects one LEU Cylinder," Nuclear Fuel, 15 December 1997,  pp.1, 15-16.]{entered 11/4/98 FW}
 
10/97:  INKAI PROJECT DIGS TEST MINE
Construction of a test mine is under way at the Inkai ISL Uranium Project, located in the Chu-Sarysu basin of southern Kazakhstan.  Operated as a joint venture between the Canadian firms Uranerz and Cameco and the Kazakhstan State Corporation for Atomic Power and Industry (KATEP), the Inkai test mine will produce 118,000 lbs of U3O8 annually.  If larger-scale production proves feasible, the partners anticipate that the Inkai mines will produce 1 million lbs of U3O8 annually beginning in 1999, increasing to 2.6 million lbs per year beginning in about 2003.
[Glenn Catchpole, "The Inkay ISL Uranium Project in Kazakhstan," abstract of paper presented at the 1997 Uranium Institute Symposium, London, http://www.uilondon.org/uiabs97/catch.html.]{entered 9/15/98 fw}
 
8/15/97: KYRGYZSTAN AND KAZAKHSTAN CREATE A URANIUM PROCESSING JOINT VENTURE
Kazakhstani Deputy Prime Minister Umirzak Shukeyev and Kyrgyzstani Prime Minister Apas Szhumagulov signed an agreement in Bishkek to establish a new uranium processing joint venture at the Kara-Balta mining complex.[1]  The venture will initially process up to 1000 MT of Kazakhstani U308 per year, increasing to 2000 MT U308 per year.[2]  The enterprise plans to process 450 MT in 1998.[3]  Kazatomprom will own a 65 percent share of the joint venture, while Kara-Balta will own 35 percent.[2]  The agreement plans to add Tajikstan's Leninabad Minining and Metallurgical Combine Number 6 to the joint venture at an unspecified later date.[4]  One unnamed official stated that the purpose behind the Kazakh-Kyrgyz enterprise is to direct the normal processing route away from Tselinnyy Mining and Chemical Combine in northern Kazakhstan. The Tselinnyy facility has remained inoperative since Spring 1997 after the Kazakhstani government annulled an agreement with the former managing contractor, World Wide Minerals.[2]  Deputy General Director of Kara-Balta Anatoliy Grebenyuk stated that while Russia will be the primary recipient of the new venture's processed uranium, the United States, Germany, Japan, and France have also shown interest in purchasing their uranium.[4]
Sources:
[1] Interfax, 28 August 1997; in "Kazakh-Kyrgyz Plant to Produce 450 Tonnes Uranium in 1997," FBIS-SOV-97-240.
[2] "Kazakhstan, Kyrgyzstan Sign Mining/Processing Pact," FreshFUEL, 15 September 1997, pp. 1-2.
[3] Novecon, 29 August 1997; in UI News Briefing, 2 September 1997.
[4] Yuriy Razgulyayev, "Kazakhstan-Kyrgyzstan Uranium Tandem Created," Delovoy mir, 5-8 September 1997, p. 3; in "Kazakhstan, Kyrgyzstan Set Up Uranium Joint Venture," FBIS-SOV-97-251.  [entered 1/28/98 djw]
 
4/11/97:  KAZAKHSTAN EXPORTED 7000t OF URANIUM FROM 1993 TO 1996
The head of the Kazahkstani State Corporation for Atomic Power and Industry (KATEP) Viktor Yazikov told Interfax that between 1993 and 1996 Kazakhstan exported 7000 metric tons (t) of uranium.  He stated that nearly 3000t of that amount was shipped to the United States.  Yazikov estimated that another 540t of uranium would be exported to the United States during the first half of 1997.
["Kazakh Uranium Exports," RFE/RL Newsline, Vol. 1, Part 1, 14 April 1997.] {entered 2/6/98 djw}
 
2/97:  PRIME MINISTER SIGNS DECREE TO FURTHER URANIUM INDUSTRY DEVELOPMENT
Prime Minister Akezhan Kazhegeldin signed the Decree "On additional measures to deepen reform and further development of the uranium industry and atomic energy in the Republic of Kazakhstan."  This decree is aimed at reforming Kazakhstan's nuclear industry and fulfilling Kazakhstan's obligations to the Nonproliferation Treaty (NPT) and safeguard agreements with the IAEA .  The decree lays out further responsibilities for the Kazatomprom joint venture: to attract foreign partners to develop the deposits of Moinkum along with Katko joint enterprise; to take part in further governmental discussions in developing Kazakhstan's nuclear fuel and atomic energy industry with other countries in both the CIS and the world; to participate in international organizations involved in nuclear industry; to prepare intergovernmental agreements investigating dumping of nuclear materials and dual-use materials; to secure transportation and storage of nuclear material and dual-use items; and to secure information on uranium deposits in Kazakhstan.  The decree also entrusts the Enterprise Reorganization Agency to carry out financial appraisals of Ulba Metallurgy Plant, Volkovgeologiya, Ore Administration No. 6, Stepnoye Ore Administration, and the Tsentralnoye Ore Administration and to work out a payment schedule to eradicate their financial debts.  The decree eases the financial burden of these enterprises by securing the transfer of social facilities and responsibilities to local and municipal governments.  The Kazakhstani government is now turning to implementing a single policy of regulating production and utilizing nuclear materials and dual-use items, observing international treaties, and adhering to obligations set up by Kazakhstani participants of the Inkai and Katko international joint ventures.  The decree states that the Ministry of Industry and Trade, together with Kazatomprom, will present proposals to Inkai and Katko on the volume of nuclear materials and dual-use items for export and import.
["Predprinimayutsya dopolnitelnye mery po dalneyshemu razvitiyu uranovoy promyshlennosti i atomnoy energetiki," Panorama, 28 February 1997, p. 1.] {entered 2/6/98 djw}
 
1/28/97: KAZATOMPROM TO ISSUE LICENSES FOR URANIUM MINING
It was reported that, in accordance with a governmental resolution, the newly established company Kazatomprom will be responsible for issuing licenses to manage the Moinkum, Uvanas, Kanzhugan, North and South Karamurun, Irkol, Kharasan, Budennovskoye, and Mynkuduk (Akdala and Vostochnyy sections) deposits. Kazatomprom could be also given some shares in the Kazakhstani-German-Canadian joint venture Inkay. The state, represented by Kazatomprom, will thus have a stake in enterprises prospecting, extracting, and processing uranium in Kazakhstan.
["Is Everything All Right in our 'Nuclear Empire'?" Ekspress, 2 January 1997, p. 4, in "Kazakhstan: Article Views 'Crisis' in Nuclear Industry," FBIS-SOV-97-024.] {Entered 2/20/97 GB}{Cleared 3/28/97}
 
11/21/96: MINING WORKERS PROTEST DELAYS IN SALARIES
It was reported that workers of the Tselinnyy Mining and Chemical Combine conducted meetings protesting 5-month delays in payment of salaries and the lack of electricity and heat in the town of Stepnogorsk.
[Aleksandr Kapkov, "S urana - na kizyak," Pravda Rossii, 21 November 1996, p. 3.] {Entered 1/5/97 GB}
 
10/24/96: KAZAKHSTAN TO SELL MINING FACILITIES TO FOREIGN FIRMS
It was reported that World Wide Minerals (Canada) obtained the right to buy 90% of the shares of the Tselinnyy uranium mining and milling complex in Akmolinsk oblast in exchange for investments, the amount of which was not disclosed. The Kazakhstani government also plans to transfer to foreign investors a number of other uranium facilities, including a recently declassified mine in Kyzyl Orda oblast and the Ulba plant in Eastern Kazakhstan. Earlier plans of the Kazakhstani government to transfer the Ulba plant to the Russian financial group Interros and the Swiss firm Zambezi Holding Finife SA were not successful. The management of the Ulba plant wants to enter the joint stock company TVEL in order to receive guarantees from the Russian government for the purchase of nuclear fuel from Ulba for Russian nuclear power stations
Sources:
[1] Lev Vrubel, "Kazakhstan prodayet uranovyy compleks "Tselinnyy" kanadskoy kompanii," Segodnya, 24 October 1996, p. 4; 
[2] Anatoliy Serebryanikov, "Pod kolpakom u MAGATE," Kazakhstanskaya pravda, 27 September 1996, p. 2.] {Entered 12/8/96 GB}
 
10/14/96: KAZAKHSTANI URANIUM QUOTA INCREASED
The quota for imports of Kazak uranium into the US over the next six months has been increased from 500,000 pounds of U3O8 (192 tU) to 700,000 pounds of U3O8 (269 tU) following an increase in the US Department of Commerce's calculated market price ($15.78 per pound).
Sources:
[1] UI News Briefing, NB96.41-12, 10/9-15/96, http://www.uilondon.org/nb/nb96/nb9641.html.
[2] Nuclear Review, "DOC Updates Export Quotas," October 1996, p. 13] {Entered 12/8/96 GB}
 
9/11/96: CIS URANIUM PRICES INCREASED
Due to the tightening supply in the international uranium market, the price of uranium produced in the CIS (CIS member states Kazakhstan and Uzbekistan are among the 10 top world producers) has doubled since the beginning of 1995. Kazakhstan has announced that it is planning to increase its uranium production capacity. According to President of KATEP Victor Yazikov, the increase in uranium production can be hampered by considerable debts of Kazakhstani uranium enterprises. The export of uranium by the CIS is limited by US and EU anti-dumping quotas imposed because these countries are concerned about becoming too dependent on CIS material.
Sources:
[1] Julian Steyn, "Prospects Brighten for World Uranium Products, Nuclear Engineering International,  September 96, p. 12.
[2] Kenneth Gooding, "Uranium Miners See Light at End of Tunnel," Financial Times, 11 September 1996, p.24.
[3] Tatyana Abramenko, "Nesmotrya na novoye uvelixheniye v mire sprosa na uran, Kazakhstan poka ne vyderzhivayet konkurentsii, Panorama, no. 35, 13 September 1996, p. 2.] {Entered 10/25/96 GB}
 
9/9/96: KAZAKHSTAN-IAEA CONFERENCE ON IN-SITU LEACHING, USE OF CONVICTS IN URANIUM MINES
In Almaty, the Kazakhstani Ministry of Science, Kazakhstani National Joint Stock Atomic Power Engineering and Industry Company (KATEP), and an IAEA technical committee held a conference on in-situ leaching technology for uranium mining. Representatives from 15 countries, including the United States, Canada, France, Japan, Russia, Ukraine, and Uzbekistan, participated in the conference. At the conference, KATEP president Viktor Yazikov said that a special six-country commission visited Kazakhstani mines in 1995 and confirmed that Kazakhstan does not use convicts in uranium mines.
Sources:
[1] Aleksey Petrovskiy, "Technologiya dobychi urana obsuzhdayetsya v Almaty na konferentsii MAGATE," Kazakhstanskaya pravda, 7 September 1996.]
[2] Delovaya nedelya, 20 September 1996, p. 7, in "Kazakhstan: Foreign Cooperation in Uranium Industry Development Viewed," FBIS-SOV-96-190.] {Entered 10/25/96 GB; Updated 12/8/96 GB}
 
8/20/96: COGEMA, KATEP SET UP JOINT VENTURE
The French nuclear fuel cycle company Cogema and Kazakhstan National Atomic Power Engineering and Industry Company (KATEP) set up a joint venture, Katko, to develop uranium resources in Kazakhstan. Cogema and its Kazakhstani partners each hold 45 % of Katko's stock. KATEP holds 29% of the Kazak share and the rest is owned by two other state entities, Volkovgeologiya (9%) and the Main Mining Division (7%). The remaining 10 percent of shares is held by "a certain number" of unnamed investors, mainly Swiss. One of Katko's initial projects is to study the feasibility of using in-situ leaching methods on deposits in Moinkum. Nominal production capacity at the Moinkum deposit is estimated as 700 MTU/year.
Sources:
[1] "Cogema, KATEP Set Up Joint Venture to Develop U Deposits in Kazakhstan," Nuclear fuel,  26 August 1996, p. 8.]
[2] Uranium Information Center, "Kazak Uranium Developments," 23 August 1996, http://www.uic.com.au/news596.htm] {Entered 9/25/96 GB}
 
7/30/96: OVERVIEW OF PROBLEMS AT THE TSELINNYY MINING COMBINE
It was reported that the Tselinnyy Mining and Chemical Combine in Stepnogorsk, which at its prime produced 2,000-2,500 MT of uranium per year, is operating at about 20% of capacity. The combine was formerly under the auspices of the USSR Ministry of Medium Machine Building and is the sole enterprise in Kazakhstan producing an end product on an industrial scale. In 1996, the plant employed 11,000 people; at its peak it employed 24,000 people. According to Karavan, $80-100 million in capital investment would be needed in order to stabilize the deteriorating production capacity of the combine. The combine also provides protection measures for about 50 million tons of radioactive waste which is stored on the combine's grounds having a total radioactivity of 160,000 curies. Combine employees believe that a loan against governmental guarantees, rather than handing the enterprise over to foreign management would remedy the investment situation.
[Aleksandr Kotseruba, "Uranium -- the Republic's Property?" Karavan, 30 July 1996, p. 2, in "Kazakhstan: Radioactive Waste Disposal Problem Viewed," FBIS-SOV-96-164-S, 30 August 1996.] {Entered 9/25/96 GB}
 
5/29/96: KAZAK-KYRGYZ JOINT VENTURE IN KARA-BALTA
The management of the Kyrgyz Kara-Balta uranium enterprise announced that an agreement has been signed with Kazakhstani nuclear authorities to turn Kara-Balta into a joint venture for uranium mining and processing.
["Kazakhstan, Kyrgyzstan Form Uranium Joint Venture," The Monitor, 30 May 1996.]
 
4/22/96: US UTILITIES RAISE CONCERNS ON CONTRACTS WITH KAZAKHSTAN
The US Department of Commerce proposal published in the 3/19/96 Federal Register raised concerns of US utilities companies that the proposed solution would apply additional restrictions on contracts executed prior to the US-Kazakhstan suspension agreement amendment of 3/27/95. The Nuclear Energy Institute advised that 100% grandfathering of affected Kazakhstan and Uzbekistan origin uranium contracts would not negatively affect uranium market, in light of the strong uranium market recovery.
["Utilities, NEI Criticize DOC Proposal," Nuclear Fuel,  no.16, 22 April 1996.]
 
12/18/95: US URANIUM MINERS CRITICIZE SUSPENSION AGREEMENT
A suspension agreement, fixing the amount of Kazak and Uzbek uranium which can be supplied to US utilities companies, is being challenged by uranium miners in the United States, who consider the contract unfair. Accordingly, US miners filed a petition on 11/27/95 with the US Court of International Trade in New York. A proposal by the US DOC's Joseph Petrini to grandfather 75 percent of the Kazak and Uzbek uranium, for which utilities companies in the United States had contracted before 3/27/95, appears to be the central point of contention between the two sides.
["Miners Submit New Proposal To DOC On Grandfathering Kazak/Uzbek Uranium," Nuclear Fuel, 18 December 1995, p. 2.]
 
11/11/95: KAZAKHSTANI CONSUMPTION OF CIS URANIUM
According to the Minatom figures, Kazakhstan annually consumes 1-3 percent of CIS uranium; 50 percent of CIS uranium ore deposits are located on Uzbek territory. The article concludes that the CIS must develop a inter-republic system of mining and milling uranium, in light of a reported freeze on CTR funds.
[Aleksey Chichkin, "Uranovyy sled," Rossiskaya gazeta, 11 November 1995, p. 14.]
 
10/95: KATEP, URANERZ, AND CAMECO'S JOINT VENTURE DETAILED
Uranerz CEO Dr. Hikmet Akin explained that the impetus for the planned joint venture between his firm, KATEP, and Cameco Corporation is the fact that Kazakhstan's Mynkuduk and Inkay uranium deposits are conducive to ISL mining. A feasibility study is being conducted to generate cost figures and develop an initial mining plan. Optimistic about the quantity of uranium available at the two sites, the investing firms are not likely to begin production before 2000. Uranerz and Cameco have reportedly pledged to invest $53 million in the mining project.
["Uranerz Exploration And Mining Limited: Past, Present, Future," Nukem, October 1995, pp. 21-28; "On To Kazakhstan," Nukem, October 1995, p. 18.]
 
10/2/95: U3O8 PRICE SET AT $12.25/LB
The US Department of Commerce (DOC) announced a U3O8 market price of $12.25/lb, allowing Kazakhstan, under its new suspension agreement, to import an additional 500,000 lbs into the United States in the October through March (1996) period.
["In the Antidumping Case...," Nuclear Fuel, 9 October 1995, p. 18.]
 
7/15/95: KATEP, URANERZ, AND CAMECO TO CREATE JOINT VENTURE
Cameco Corp., Uranerz Exploration and Mining Limited (both of Canada), and Kazakhstan's KATEP announced the formation of a joint venture to develop 2 uranium deposits, Inkay and Mynkuduk, in south Kazakhstan. The venture will rely on the in-situ leaching process and will be managed by Uranerz and KATEP personnel. Each company will hold a one-third participating interest.
Sources:
[1] "Three Form Kazak Joint Venture," Nuclear Review, August 1995, p. 12.]
[2] Interfax, 17 August 1995, in FBIS-SOV-95-160, "Joint Uranium Mining Venture Planned With Canada," 17 August 1995.]
 
6/2/95: NEI ASKS DOC TO GRANDFATHER CONTRACTS WITH KAZAKHSTAN
The Nuclear Energy Institute (NEI) asked the US Department of Commerce (DOC) to grandfather contracts that US utilities signed for the purchase of uranium from Kazakhstan. A number of US utilities signed contracts for Kazak uranium and planned to have that uranium enriched in Europe.
["NEI Asks for Grandfathering of Kazak U," Nuclear Fuel, 19 June 1995; p.18.]
 
3/27/95: KAZAKHSTAN AGREED TO CUT "BYPASS" URANIUM DEALS
The US Department of Commerce (DOC) and Kazakhstan signed an amendment to the Kazakhstan suspension agreement. The amendment allows one million pounds of Kazakh U3O8 to be imported into the United States after the DOC-determined price hits $12/lb. In return, Kazakhstan agreed to shut down the use of its uranium in so-called "bypass" uranium enrichment deals (deals wherein CIS uranium enriched in Europe takes on the origin of the country in which it was enriched; trade restrictions on CIS uranium are thereby bypassed). Under the new agreement all uranium mined in Kazakhstan would be considered of Kazak origin, including uranium subsequently enriched in a third country.
["Uranium Market," Nuclear Fuel, 10 April 1995; p. 15.]
 
1/95: KAZAKHSTANI URANIUM TO BE PROCESSED IN KYRGYZSTAN
According to an agreement reached between Kazakhstan and Kyrgyzstan, some uranium mined in Kazakhstan will be processed at the Kara-Balta mining combine near the Kyrgyz capital, Bishkek.
[ITAR-TASS, 21 January 1995; in FBIS-SOV-95-014, "Kazakhstan Agrees to Joint Uranium Production," 21 January 1995.]
 
3/28/94: KAZAKHSTAN TO SELL URANIUM AND BERYLLIUM TO RUSSIA
Kazakhstani President Nursultan Nazarbayev and Russian President Boris Yeltsin signed a series of 23 agreements, including the use of the Baykonur Cosmodrome and the sale of beryllium and uranium materials.
["Kazak Leader Says No Fear Of Russian Imperialism," Reuters News Service, 30 March 1994.]
 
5/12/94: KAZAKHSTANI URANIUM EXPORT TO THE US DETAILED
According to an agreement between the United States and Kazakhstan, 440,000 lbs. of newly produced Kazak-origin uranium U3O8 may be imported into the US each year for the next two years. After that, a quota will established, based on US uranium production levels. If the United States produces 3.5 million lbs., then Kazakhstan could export 330,000 lbs. to the United States; at a US production level of 6.5 million lbs., Kazakhstan could export 909,000 lbs. However, the US Department of Commerce (DOC) and Kazakhstan can agree after the initial two-year "transitional period" to revert back to the original suspension agreement, which allows increasing amounts of imports as the DOC indicator price rises above $13/lb.
["Kazak, Uzbek Amendments May Be Finalized Soon," Nuclear Fuel, 12 May 1994, pp. 2-3.]
 
4/94: KAZAKHSTANI EXPORT AGREEMENT WITH NUKEM
It was reported that Kazakhstan concluded agreements on the export of uranium with NUKEM and the Australian firm Energy Resources.
[Dr. Oleg Bukharin and Professor William Potter, "Kazakhstan--A Nuclear Profile," Jane's Intelligence Review, April 1994, p. 186.]
 
10/21/92: ANTIDUMPING OF KAZAKHSTANI URANIUM SUSPENDED
The US Commerce Department decided to suspended its uranium antidumping investigations of Kazakhstan, Kyrgyzstan, Russia, Ukraine, and Uzbekistan as long as a price-based quota, starting when the US market price is $13/lb for U3O8 is imposed. The investigation was filed by an ad hoc group of US uranium miners and the Oil, Chemical, and Atomic Workers Union. Agreements were also signed with Tajikistan and Kyrgyzstan but no quotas were established since these republics have uranium mills but no mines. Should Kyrgyzstan or Tajikistan open any mines at a later date, the agreement states that quotas may be set. This agreement will remain in force until October 15, 2000.
["CIS Republics Sign U Suspension Agreement to End Antidumping Agreement," Nuclear Fuel, 21 October 1994, pp. 1-6.]