JV Zarechnoe

JV Zarechnoe (Republic of Kazakhstan)

Zarechnoe joint venture owned by Kazatomprom (50%) and ARMZ Uranium Holding Co. (50%) develops Zarechnoe and Zarechnoe South uranium deposits in Kazakhstan. Reserves and resources of categories B1, C1, and C2 at the Zarechnoe field total 18.904 tU (49.15 million lbs U3O8), with ARMZ’s share of 9.452 tU (24.6 million lbs U3O8). P1 resources at Zarechnoe South amount to 30.100 tU (78.26 million lbs U3O8) providing ARMZ with its stake of 15.050 tU (39.13 million lbs U3O8).

Industrial production of uranium commenced at the Zarechnoe deposit late in 2006, with the output of 166 tU (43 million lbs U3O8) in 2008. The mine is slated to reach stable state production of 1000 tU (2.6 million U3O8) per year in 2011. Work started in 2008 to prepare the Zarechnoe South deposit for development: tapping into Zarechnoe South will allow the mine to substantially increase its capacity — to 1.600 tU (4.16 million lbs U3O8) by 2016.

Major stages of Zarechnoe South ore field development include: conducting geological surveys and pilot projects (2008 — 2011); approval and registration of reserves and resources by the Kazakhstan State Reserves Commission, project planning, and the start of construction of facilities with a production capacity of 1 000 tU (2.6 million lbs U3O8) per year (2012 — 2014); the start of industrial uranium mining in 2014. The existing agreement provides for ARMZ Uranium Holding Co.’s access to 100% of uranium produced by Zarechnoe.

Address: Republic of Kazakhstan. 160700, South-Kazakhstan Region, Otrarskiy District, Shaulder village