July 21, 2008

Russian Uranium Producer Asks for Independent Asset Valuation

MOSCOW. July 21 (Interfax) - The Atomredmetzoloto Uranium Holding Company (ARMZ), the Russian nuclear industry's authorized uranium supplier, said it had commissioned two leading international consultant companies to make an independent valuation of its uranium assets using international standards.

The companies commissioned are SRK Consulting and Hatch, ARMZ said in an annual report.

ARMZ manages all Russian uranium producing assets, the largest of which is the Priargunskoye Mining and Chemical Production Association. ARMZ also produces uranium in Kazakhstan.

Uranium reserves belonging to ARMZ enterprises, including all the reserves of the Zarechnoye joint venture and a 25% share of those of the Akbastau joint venture in Kazakhstan, totaled 564,241 tonnes by January 1, 2007, which puts ARMZ in second place in the world in terms of reserve volumes.

ARMZ enterprises' total uranium output for 2007 was 3,413 tonnes - 7% up on 2006 - within Russia alone and 3,527 tonnes including its results in Kazakhstan.

ARMZ plans to increase its uranium output 10% in 2008 to 3,880 tonnes and to bring it to 20,000 by 2024, the year by which all its enterprises are due to start operating to capacity.

The report also said ARMZ and gold-mining company Zoloto Seligdara had set up a joint venture, called Lunnoye, to yearly produce up to 180 tonnes of uranium and obtain 490 kilograms of gold and 962 kilograms of silver a year from the Lunnoye gold and silver deposit 680 kilometers north of Magadan. Lunnoye is one of Russia's largest gold and silver deposits.

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