Before 1992, all uranium mined and milled in Uzbekistan was shipped to Russia.  Since 1992, all Uzbekistani uranium production is exported, mainly to the United States, through the US-based intermediary Nukem, Inc.  A 1992 suspension agreement on imports of Uzbekistani uranium set limits on the amount of uranium production that could be exported to the United States.[3]  These limits were gradually increased until July 2000, when the US International Trade Commission ruled that the sanctions be lifted altogether.[4]

During the Soviet era, Uzbekistan provided the lion's share of uranium to the Soviet military-industrial complex.[5]  Five "company towns" were constructed to support uranium production activities:  Uchkuduk, Zarafshan, Zafarabad, Nurabad, and Navoi.  These five towns, with a combined population of 500,000, provide NMMC with a stable and highly skilled work force.[2]  Many of the senior positions in Uzbekistan's uranium industry are held by ethnic Russians.[5]

On 25 January 2006, Uzbekistan became the sixth member of the Russian-led Eurasian Economic Community (EEC). In his remarks to a gathering of the EEC in St. Petersburg, Russian President Vladimir Putin called for increased cooperation within the EEC, especially with regards to the development of collaboration in the peaceful uses of nuclear energy. Putin noted that Uzbekistan's extensive uranium ore reserves give Russia "additional long-term possibilities for the building of a stable nuclear fuel energy base." The EEC meeting yielded a a joint uranium mining agreement between Russia's Tekhsnabeksport and Uzbekistan's Navoi Metallurgical Combine.
Sources:
[1] "1999 World Natural Uranium Production," Nukem Market Report, April 2000, p. 30.
[2] Uranium 1999:  Resources, Production and Demand, a joint report by the OECD Nuclear Energy Agency and the International Atomic Energy Agency (Paris:  2000), pp. 294-303.
[3] Mekhman Gafarly, "Tsentralnoy Azii grozit ekologicheskaya katastrofa," Nezavisimaya gazeta, 23 September 2000, p. 5; in Integrum Techno, http://www.integrum.com.
[4] Uranium Institute News Briefing 00.31, 26 July - 1 August 2000, Uranium Institute Web Site, http://www.uilondon.org/uilondon/uilondon/nb/nb00/nb0031.htm.
[5] Takhir Dzhalilov, "Tashkent's Strategic Resource," Nezavisimaya gazeta, 5 June 1996, p. 3; in FBIS-SOV-96-110.
[6] Vladimir  Berezovskiy, "Tashkent's Uranium Aspirations," Rossiyskaya gazeta, 26 April 1997, p. 7; in "Development of Uzbek Uranium Industry Eyed," FBIS-SOV-97-086. {Entered 9/18/97 EB}

Mining Operations
All significant uranium deposits are in the central Kyzylkum area, a 125km wide belt extending 400km from Uchkuduk in the northwest to Nurabad in the southeast. Since 1994, all uranium has been extracted using ISL technology by three mining directorates:  Northern, Southern, and No. 5.  A fourth directorate, Eastern, was shut down in 1994. 

Navoi Mining and Metallurgy Combine (NMMC)

Location: Navoi (400km west of Tashkent)

Operator: Kyzylkumredmetzoloto

Background: The Navoi Mining and Metallurgy Combine (NMMC), also known as Navoi Hydrometallurgical Plant Number 1, was completed in 1964.  Production from Uzbekistan's three ISL mining directorates is transported by rail to NMMC for processing.  The plant has an annual production capacity of 3,000t.  In 1998, 8,165 persons were employed at the Combine.
[Uranium 1999:  Resources, Production and Demand, A Joint Report by the OECD Nuclear Energy Agency and the International Atomic Energy Agency (Paris:  2000), pp. 294-303.]{Updated 4/4/01 KB}

Activities: NMMC produces UO2 and U3O8 (yellowcake) from uranium concentrate derived from ISL operations at Uzbekistan's three operational mining directorates.  Uranium production in Uzbekistan peaked in the mid-1980s, when yearly production measured 3,700 to 3,800t/year.[1]  In 1999, NMMC produced 2,130t of U3O8, or 6.8% of the total world uranium output.  As of April 2000, output for 2000 and 2001 was estimated at 2,350t per year.[2]
 
CNS has received reports that a uranium enrichment facility, possibly a pilot facility, was in operation at NMMC during the 1970s and 1980s, but is now closed.[3]  While these sources are considered reliable, it has not been possible to verify them independently.  Uzbek nuclear industry officials deny that uranium enrichment ever took place in Uzbekistan.[4,5] Concentration of uranium into yellowcake does take place at the Navoi combine, but there is no indication that conversion of uranium into uranium hexafluoride (UF6) gas has been carried out at Navoi.  This process would be a necessary first step for enrichment by gas diffusion or gas centrifuge, which were the technologies known to be employed in the Soviet Union, although experimental enrichment technologies (e.g. chemical) might not require such a step. Reports of enrichment activity in Uzbekistan during the Soviet period must thus be considered unconfirmed at this point.
Sources:
[1] Uranium 1999:  Resources, Production and Demand, A Joint Report by the OECD Nuclear Energy Agency and the International Atomic Energy Agency (Paris:  2000), pp. 294-303. 
[2] "1999 World Natural Uranium Production," Nukem Market Report, April 2000, p. 30.
[3] William C. Potter, "Exodus: Containing The Spread Of Soviet Nuclear Capabilities," Harvard International Review, Spring 1992, p. 27.
[4] NISNP interview with Uzbekistani government officials, 6 June 1995.
[5] Weekly Report from CNS Branch Office, Almaty, 24 May 1999, UZB990524. {entered 5/24/99 SDP}{Updated 4/4/01 KB} 
  
Archived Mining and Milling Developments
 
5/18/2000:  UZBEKISTAN SEEKS FOREIGN INVESTORS TO DEVELOP FIVE URANIUM DEPOSITS
Gerald Kamagurov, head of the Uzbekistani State Geology Committee's Mineral and Raw Materials Department, announced that Uzbekistan intends to set up joint ventures with foreign investors to develop five mines:  Aktau, Aulbek, Alendy, Kosgena, and Dzhantuar.[1]  Uzbekistan is also seeking foreign companies to independently explore the East Toktynintau and Dzhangeldy fields, which have estimated reserves of 12,000 and 17,000 metric tons, respectively.[2]
Sources:
[1] "Uzbekistan is seeking foreign investors to develop five uranium deposits," Uranium Institute News Briefing 00.21, 17-23 May 2000, Uranium Institute Website, http://www.uilondon.org/.../nb/nb00/nb0021.htm; in Reuters/Russia Today, 18 May 2000.
[2] Dmitriy Alyayev, "K uranu dopustyat vsekh," Delovaya nedelya, No. 22 (400), 2 June 2000, p. 8.{Entered 3/13/01 KB}
 
4/15/98: NAVOI AND COGEMA PLAN TO FORM JOINT URANIUM VENTURE
The Navoi combine intends to set up a joint venture with the French company COGEMA to develop the Sugraly field in the central Kyzylkum desert.[1] The two companies have signed an agreement on trial mining of uranium at the deposit, which contains 38,000 metric tons of proven uranium reserves.[2]
Sources:
[1]"Uzbekistan and France's Cogema to develop uranium field," Interfax, 15 April 1998.
[2] NB98.16-5, Uranium Institute News Briefing,http://www.uilondon.org/nb/nb98/nb9816.htm, 15-21 April 1998. {Entered 6/11/98 AM}
 
12/22/97: RUSSIA AND UZBEKISTAN SIGN NUCLEAR ENERGY AGREEMENT
On 22 December 1997, during a visit by Russian Prime Minister Viktor Chernomyrdin to Uzbekistan, an agreement on the peaceful use of nuclear energy was signed between the two governments.[1]  Uzbekistani President Islam Karimov said that, by signing the agreement, Uzbekistan showed its desire to restore and develop ties between nuclear research facilities in Russia and Uzbekistan. Karimov expressed his desire that Russia use Uzbekistani uranium for Russian nuclear power plants and other purposes.[2]  No action was taken on Russia's proposal to set up joint enterprises to develop new uranium deposits in Uzbekistan.[3]
Sources:
[1] Foreign Ministry of the Russian Federation, "Vizit V.S. Chernomyrdina v Uzbekistan," Diplomaticheskiy vestnik online edition, http://www.diplomat.ru, January 1998.
[2] Ivan Ivanov and Vilor Niyazmatov, ITAR-TASS, 22 December 1997; in "Uzbekistan:  Chernomyrdin, Karimov on Signing of Atomic Energy Agreement," FBIS Document DRSOV1997001153.
[3] M. Lillevyali, ITAR-TASS, 22 December 1997; in "Russia:  Chernomyrdin Discusses Economic Cooperation in Uzbekistan," FBIS Document DRSOV1997001391.{Entered 3/4/01 NA}
 
9/24/97: NAVOI COMBINE DEVELOPING NEW ISL TECHNOLOGY
Navoi is developing and implementing a dilute acid leaching technology in its new in situ leaching (ISL) fields.  This  process may help reduce the environmental effects of ISL mining.  Navoi has also developed technology to decommission and restore ISL fields, including the safe disposition of  low-level waste.
[B. Almgren, A. Rising, I. Lindholm, "Scrutinising uranium mines, environment wise," Core Issues, no. 2, April-May 1997,  pp. 9-11.] {Entered 9/19/97 EB}
 
9/19/97: NFE EXPERTS INSPECT NAVOI MINING COMBINE
Representatives from Sweden's Nuclear Fuel and Environment (NFE) project were in Uzbekistan from 11 to 19 November 1996 to hold several meetings with Navoi combine representatives and visit the Navoi metallurgical plant, tailings impoundment, and laboratories. The representatives also visited active ISL operation fields in  Zafarabad and Uchkuduk, and a restored ISL field in Zarafshan.  The NFE  project examines the environmental policies of a given organization and how they are implemented. The inspection results were favorable; NFE noted that Uzbekistan plans to implement new international Basic Safety Standards for radiation safety in 1998, two years ahead of the European Union.  NFE recommended that groundwater aquifers in areas where ISL has taken place should be monitored to ensure no environmental damage occurs.
[B. Almgren, A. Rising, I. Lindholm, "Scrutinising uranium mines, environment wise," Core Issues, no. 2, April-May 1997,  pp. 9-11.] {Entered 9/19/97 EB}
 
9/18/97: DOMESTIC MANUFACTURING LOWERS URANIUM MINING COSTS
In November 1996, the plant in Nurabad began production of PVC-clad drilling pipes which previously were bought in Russia.  This reduced the production cost of Uzbekistani uranium by almost one-third.  Uzbekistan has also organized the production of its own immersion pumps.  Navoi has awarded a $5-million order for supplying drilling rigs to a plant in Kungur.
[Vladimir  Berezovskiy, "Tashkent's Uranium Aspirations," Rossiyskaya gazeta, 26 April 1997,  p. 7; in "Development of Uzbek Uranium Industry Eyed," FBIS-SOV-97-086] {Entered 9/18/97, EB}
 
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 has doubled since the beginning of 1995. The export of CIS uranium is limited by US and EU anti-dumping quotas imposed because these countries are concerned about becoming too dependent on CIS material. CIS member states Kazakhstan and Uzbekistan are among the 10 top world producers of uranium.[1]
Sources:
[1] Julian Steyn, "Prospects Brighten for World Uranium Products," Nuclear Engineering International,  September 1996, p. 12.
[1] Kenneth Gooding, "Uranium Miners See Light at End of Tunnel," Financial Times, 11 September 1996, p. 24. {Entered 10/3/96 GB}
 
9/9/96: TALKS ON JOINT VENTURE BETWEEN NAVOI COMBINE AND NUKEM FALL THROUGH
It was reported that the Uzbekistani Navoi Combine and the US firm Nukem have failed to create a planned joint venture. Chief Engineer of the Navoi Combine, Yevgeniy Tostov, indicated that the combine and Nukem have had disagreements concerning their shares in the creation of the joint venture, the distribution of profits, and the volume of Nukem's investment. However, the Navoi Combine has confirmed that Nukem will continue to have an exclusive right to purchase Uzbekistan's uranium, in accordance with the agreement signed by Navoi and Nukem in 1992. The Navoi Combine is planning to increase its production to 3,000-3.500 tons of uranium from the 2,200 tons which are currently (1996) produced.
Sources:
[1] NB96.37-8, Uranium Institute News Briefing,  http://www.uilondon.org/nb/nb96/nb9637.html.
[2] NB96.39-15, Uranium Institute News Briefing,  http://www.uilondon.org/nb/nb96/nb9639.html.
[3] "Uzbekistan i Nukem pytayutsya snyat raznoglasiya v sozdanii uranovogo SP," Interfax, 24 June 1996.
[4] Andrey Slidov, "President Karimov's Mines," Kommersant-Daily, 5 June 1996, p. 4, in "Uzbekistan: Investors Sought to Develop Uranium Mines," FBIS-SOV-96-139-S.
[5] NB96.27-7, Uranium Institute News Briefing,  http://www.uilondon.org/nb/nb96/nb9627.htm, 3-9 July 1996. {Updated GB 10/25/96}
 
6/5/96: PROJECT DEVELOPED ON RE-TOOLING THE NAVOI MINING AND METALLURGICAL COMBINE
It was reported that the Uzbekistani Cabinet of Ministers, together with the management of the Navoi Mining and Metallurgical Combine, has put together a $100 million project on re-tooling the combine by 2030, given the current favorable trend in world uranium prices. Uzbekistan plans to complete the construction of a $3.2 million plant in Nurabad for manufacturing special drilling pipes in 8/96. Local manufacture of pipes, formerly purchased from Russia, is expected to lower the cost of uranium production by 20-30 percent. Equipment for the plant was supplied by German companies. In 6/96, Uzbekistan opened bidding to several foreign companies for replacing Navoi's drilling equipment; the $30 million contract will be for several dozen drilling units. With exports to the United States restricted by US quotas set in 1992, press reports maintain that Uzbekistan managed to sell only a small amount of mined and processed uranium to Ukraine under an inter-governmental agreement. Recently, a contract for 500 tons of Uzbekistani uranium was signed with a South Korean company.
Sources:
[1] Takhir Dzhalilov, "Tashkent's Strategic Resource," Nezavisimaya gazeta, 5 June 1996, p. 3, in FBIS-SOV-96-110.
[2] Andrey Slidov, "President Karimov's Mines," Kommersant-Daily, 5 June 1996, p. 4, in "Uzbekistan: Investors Sought to Develop Uranium Mines," FBIS-SOV-96-139-S.
[3] NB96.27-7, Uranium Institute News Briefing,  http://www.uilondon.org/nb/nb96/nb9627.htm, 3-9 July 1996. {Updated 8/27/96 GB}
 
5/96: CONFERENCE HELD ON URANIUM GEOLOGY AND ORE RESOURCES
An international conference on uranium geology and Uzbekistan's uranium ore resources occurred in Tashkent. The Uzbekistani government invited Russian and CIS specialists to help prospect for uranium resources.
Sources:
[1] "Uzbekistan: Russians Help Sought for Uranium Prospecting," BBC Monitoring Service,  28 May 1996.
[2] Andrey Slidov, "President Karimov's Mines," Kommersant-Daily, 5 June 1996, p. 4, in "Uzbekistan: Investors Sought to Develop Uranium Mines," FBIS-SOV-96-139-S.{Updated 8/27/96 GB}
 
2/12/96: VIOLATION OF UZBEKISTAN ANTI-DUMPING AGREEMENT ALLEGED
It was reported that a group of US uranium producers and the Oil, Chemical, and Atomic Workers International Union filed a petition that a delivery of Uzbekistani uranium to the US in January 1996 violated the Uzbekistani anti-dumping suspension agreement. The dispute between Uzbekistan and Nukem on the one side and the petitioners on the other involves the interpretation of an appendix to the 1992 suspension agreement regarding grandfathered contracts.
["In The Antidumping Case...," NuclearFuel, 26 February, 1996,  pp. 2,16.]
 
12/18/95: US URANIUM MINERS CHALLENGE SUSPENSION AGREEMENT
A suspension agreement which fixes the amount of Uzbekistani uranium that can be supplied to US utilities companies is being challenged by uranium miners in the US, 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 Department of Commerce's Joseph Petrini to grandfather 75 percent of the Uzbekistani uranium, for which utilities companies in the US had contracted before 27 March 1995, appears to be the central point of contention between the two sides.
["Miners Submit New Proposal To DOC On Grandfathering Kazak/Uzbek Uranium," NuclearFuel, 18 December 1995, p. 2.]
 
11/11/95: INTER-REPUBLIC TIES IN THE AREAS OF URANIUM MINING AND REPROCESSING
According to the Minatom figures, Uzbekistan annually consumes 1-2 percent of CIS uranium; 20 percent of CIS uranium ore deposits are located on Uzbekistani territory. The article concludes that without the integrated development of horizontal, inter-republic ties in the areas of uranium mining and reprocessing, the CIS will not be able to compete effectively.
[Aleksey Chichkin, "Uranovyy sled," Rossiyskaya gazeta, 11 Nuvember 1995,  p. 14.]
 
9/13/95: AMENDMENT TO THE URANIUM SUSPENSION AGREEMENT
The Uzbekistan-US Department of Commerce uranium suspension agreement was amended. The amendment will allow 940,000 lbs. of Uzbekistani U3O8 to be shipped to the US for 2 years and be sold at a price equal to or above a reference price (as of 31 July 1995: $12/lb.). After 2 years, the import quota is tied to US production levels - a limit of 600,000 lbs. if US production is below 3.5 million lbs., rising to an unlimited quantity if US production exceeds 9 million lbs. The amended agreement would also extend the original Uzbekistani suspension agreement until 2004. This agreement would eliminate so-called enrichment bypass transactions.
Sources:
[1] "Suspension Agreements: The Status Quota," The Nuclear Review, January 1996,  p. 17.
[2] Michael Knapik, Wilson Dizard, and Mark Hibbs, "U Price In Unrestricted Market Moves Up; DOC, Uzbeks Initial Amended U Agreement," NuclearFuel, 31 July 1995, p. 19.
[3] "Government Perspective: Department of Commerce," The Nuclear Review,  August 1995, p. 11.
 
6/95: UZBEKISTANI URANIUM MARKETING
Uzbekistani Goskomgeologiya officials complained that the US uranium market is now essentially closed to Uzbekistan. As the United States produces 60% of the world's nuclear fuel, Uzbekistan has lost a major corner of the market. Uzbekistan currently sells primarily to France and Canada (Cameco), with other firms showing some interest. Officials stated that Uzbekistan only sells uranium to countries that provide guarantees that it will be used for peaceful purposes. The end-user country must have either an IAEA or a Euratom Safeguards Agreement in place.
[Emily Ewell, "Trip Report - Uzbekistan, Kazakhstan, and Ukraine," 21 June 1995, p. 9.]
 
10/94: AMENDMENT TO THE URANIUM SUSPENSION AGREEMENT
The US Commerce Department submitted a draft amendment to the Uranium Suspension Agreement reached with Uzbekistan. This agreement establishes quota limits for Uzbekistani uranium being sold on the American market at a certain fixed price. This price is the average of the production costs of in-situ leaching in the US and Uzbekistan.
Sources:
[1] "Commerce Releases Draft Amendment to Uzbekistan U Suspension Agreement" NuclearFuel, 10 October 1994, pp. 4-5.
[2] "Uzbek Suspension Agreement in the Works," Nuexco Review, no. 10, 1994, p. 13.
 
9/27/94: THE EC TECHNICAL ASSISTANCE TO UZBEKISTAN
The European Commission is providing Uzbekistan with free technical assistance regarding safe transportation and distribution of natural and low-enriched uranium. EC experts will be visiting Uzbekistan to assess the current transportation system and the develop new proposals designed to ensure nuclear security.
Sources:
[1] Biznes-Vestnik Vostoka (Tashkent), 23-29 September 1994, p. 3; in "European Commission to Advise on Transporting Uranium," FBIS-SOV-94-187.
[2] BBC Monitoring Service Summary of World Broadcasts, 23 September 1994.
 
10/16/92: SUSPENSION OF THE URANIUM ANTIDUMPING INVESTIGATIONS
The US Commerce Department decided to suspend 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.
Sources:
[1] "CIS Republics Sign U Suspension Agreement to End Antidumping Agreement," NuclearFuel, 21 October 1994, pp. 1-6.
[2] "Suspension Agreements: The Status Quota," The Nuclear Review, January 1996,  p.  17. 

	Updated July 2007