Russia to Buy 17 Percent of Canada’s Uranium One

Russia's state-owned nuclear company, agreed to buy 17 percent of Uranium One Inc. in exchange for half a Kazakh mine, Bloomberg reports.

Rosatom's ARMZ Uranium Holding Co. will exchange its stake in the Karatau mine, which went into production last year, for 117 million Uranium One shares and as much as $150 million in cash, the Canadian company said today in a statement. Toronto- based Uranium One will sell half the uranium from Karatau to ARMZ or 20 percent of its total output, whichever is greater.

Russia, holder of the third-largest uranium resources after Australia and Kazakhstan, is seeking cheaper sources of the metal as it signs new enriched-uranium supply contracts in the U.S. and Japan. Globally, Rosatom accounts for 40 percent of enrichment capacity and 8 percent of uranium-mine production.

Rosatom is among companies competing for world uranium assets. Korea Electric Power Corp. agreed to buy 20 percent of Canada's Denison Mines Corp. in April and said in May it would target Australian miners. China has urged its companies to buy uranium reserves abroad as the nation expands nuclear-generating capacity, according to the National Energy Administration.

"In a situation when rivalry for uranium assets has been growing more acute, ARMZ started pursuing a proactive mergers and acquisition policy," the Russian company's Chief Executive Officer Vadim Zhivov said in the statement.

Uranium One rose 0.6 rand, or 2.9 percent, to 21.10 rand by 2 p.m. in Johannesburg trading. It has gained 71 percent this year, valuing the company at 10.1 billion rand ($1.3 billion).

Uranium One will also fund the Karatau deal in the fourth quarter with an equity placing to Japanese investors, CEO Jean Nortier said on a conference call today. The company agreed in February to place C$270 million ($239 million) of shares with Tokyo Electric Power Co., Toshiba Corp. and the Japan Bank for International Development, giving them a combined 20 percent.

Uranium One "will have no problem raising funds" should it fail to get money from the Japanese in time, Nortier said.

The Japanese investors' stake will shrink to 17 percent, the same as ARMZ, after Uranium One issues new shares under the Karatau deal, Oleg Fedyashin, ARMZ's corporate development chief, said in Moscow today. ARMZ also has permission to boost its stake to 20 percent by buying shares in the market, he said.

"This deal shows we made our choice and would like to make Uranium One the basis for our expansion abroad," Zhivov said. "We have every possibility to increase our share in Uranium One should that be of interest and meet with board approval."

Uranium One also has an option to buy ARMZ's 50 percent in the Akbastau project in Kazakhstan, Fedyashin said. Karatau's profit is forecast at $82 million in 2009, and $169 million in 2010 when it reaches planned capacity, he added.

Uranium-oxide for immediate delivery gained $2 to $52 per pound in the week ending June 12, according to Denver-based pricing service TradeTech LLC.

Uranium One, which already has deposits in South Africa, Australia, the U.S. and Kazakhstan, produced 2.86 million pounds of uranium oxide last year, while Karatau turned out 1.7 million pounds. Karatau is due to produce 3.6 million pounds at a cash cost of $15 per pound this year and 5.2 million pounds in 2010.

ARMZ bought its stake in Karatau from billionaire Vasily Anisimov for an undisclosed sum in January. The rest of Karatau is owned by Kazatomprom, the Kazakh state-owned nuclear company.

Military conflict in Karabakh drives Armenia to dead end - Russian edition
Military conflict in Karabakh drives Armenia to dead end - Russian edition
Russia responds to Pashinyan's appeal
Russia responds to Pashinyan's appeal
Armenia delivering phosphorus cargo to Khojavend creating basis for further provocations - MoD
Armenia delivering phosphorus cargo to Khojavend creating basis for further provocations - MoD
Loading Bars
Azerbaijan confirms 547 more COVID-19 recoveries
President Ilham Aliyev expresses condolences to President Erdogan
UzAuto Motors eyes expanding financing opportunities by issuing Eurobonds
Iran implements new limitations to prevent COVID-19
Georian CEC introduces media with the information about voter turnout for 12:00
Armenia deliberately burns down forests in Shusha - Azerbaijani president's aide
Tehran city council calls for extending lockdown
Uzbekistan int’l consulting organizations to transform large state-owned enterprises
Iran to inject new foreign currency package
VTB Bank (Azerbaijan) completes 9 months with profit
Military conflict in Karabakh drives Armenia to dead end - Russian edition
President Ilham Aliyev expresses condolences to Berna Yilmaz.
Drilling operations in Iran's South Pars gas field to begin soon
Weekly review of Azerbaijani currency market
Russia warns Armenia about ban on import of tomatoes
Azerbaijani oil prices down
Russia responds to Pashinyan's appeal
Inflation coming down in Georgia - Finance Minister
Voting process at Georgian polling stations ongoing in peaceful environment - CEC
Kazakhstan’s KazTransOil opens tender for equipment repair services
Azerbaijani association talks importance of OSAGO insurance in country
Iran’s NICICO boosts its production
More people rescued from rubble in Turkish Izmir
Captured Armenian cleric admits his forced involvement in Karabakh clashes (VIDEO)
Azerbaijani president's aide voices his concern over tortures against old woman
Azerbaijani 'A Audit and Consulting' LLC talks about slowdown in audit services' dev't
Armenia delivering phosphorus cargo to Khojavend creating basis for further provocations - MoD
Long term loans value surges in Kazakhstan year-on-year
Uzbekneftegaz announces tender for turboexpander unit supply
Voting in parliamentary elections in Georgia continues normally - Arzu Nagiyev (PHOTO)
Iran and Russia reach to agreement on construction of thermal power plant
Azerbaijani FM forwards his condolences to Turkish people due to Izmir earthquake
Ukraine reports record daily high new coronavirus cases
Uzbek oil and gas production dep’t announces tender for feasibility studies
Loan portfolio of Azerbaijan AFB Bank grows
Elections proceeding peacefully, no serious violations so far in Georgia - Interior Ministry
President Ilham Aliyev interviewed by German ARD TV channel (PHOTO)
Uzbek-Korean Uz-Kor Gas Chemical to buy radiant tubes via tender
Uzbekistan’s Ministry of Innovative Development to buy light vehicles via tender
South Korean companies invited to enter Turkmen market more actively
Azerbaijani FM, ICRC Director General meet to discuss current situation in Karabakh
Armenia's barbaric crimes tantamount to actions of fascists - Mikhail Zabelin (PHOTO)
Reports about shelling of Shusha by Azerbaijani army - another lie, MoD says
Azerbaijan's largest loans share falls on household sector
Azerbaijan's PM meets Pakistani ambassador
Armenian reports on missile attack on Khankendi by Azerbaijani army - lie, says MoD
Azerbaijan develops website to fight spread of Armenian fake news
Presence of PKK terrorists in ranks of Armenian Armed Forces - fact, says aide to Azerbaijani president
Iran reveals value of fishery products exported from Gilan Province
Turkmen MFA opens tender for supply of technical equipment
October conscription for active military service ends in Azerbaijan
Georgia reports 1,673 new coronavirus cases
Uzbekistan reveals its COVID-19 data for October 31
Georgia decreases export to Kazakhstan amid COVID-19
Turkmenistan, Denmark's Haldor Topsoe continue discussions on gasoline plant construction
Azerbaijani-Iranian border outposts reopen after being liberated from Armenian occupation
Some international organizations silent on crimes committed by Armenia - expert
Another earthquake strikes Turkish Izmir Province
Prime Minister of Georgia votes in parliamentary elections
Iran's per capita income declines
Turkmenistan considers opportunities to attract investment to Caspian Sea
Azerbaijani, Georgian experts discuss issues on agenda via teleconference (VIDEO)
Turkmenistan improves transport infrastructure
Iranian currency rates for October 31
Armenian Armed Forces fire at Azerbaijani Aghjabadi district's village
Georgian President Salome Zourabichvili votes at parliamentary elections
Local and international election observer organizations monitor parliamentary elections in Georgia
Parliamentary elections being held with new election system in Georgia
Parliamentary Elections being held in Georgia
Azerbaijani products to be showcased at int’l exhibition in Shanghai
Azerbaijan's income from sales of pharmaceutical products increases
Propylene production grows in Azerbaijan
Azerbaijan investing in alternative energy dev't
Azerbaijan denies accusations on use of weapons prohibited by international law
Azerbaijani army fires back at Armenia firing points, which shelled Gubadli - MoD
Latest situation on battlefield on October 31
Azerbaijani Defense Ministry lists Armenian military equipment destroyed
Azerbaijani Tartar, Aghdam, and Aghjabedi districts come under artillery fire
Brazil's COVID-19 cases top 5.5 million with 159,477 deaths
24 dead in Izmir as magnitude 6.6 quake shakes Turkey’s west coast (UPDATE)
U.S. says Iranian hackers behind threatening emails accessed voter data
Israel's COVID-19 cases up by 587, tally reaches 313,701
Trump derides doctors as COVID surges, Biden says Trump 'giving up' on virus
Protesters clash with police over COVID-19 restrictions in Barcelona
U.S. COVID-19 cases surpass 9 mln -- Johns Hopkins University
COVID-19 remains public health emergency of international concern: WHO
Meeting of Jeyhun Bayramov with OSCE MG Co-Chairs and Armenian FM ends
Azerbaijan, Armenia reach new agreements following talks in Geneva
First Vice-President Mehriban Aliyeva offered condolences to relatives and loved ones of those killed as a result of earthquake in Izmir (PHOTO)
Azerbaijani army does not fire at civilians - MoD
Franck Muller founder engaged in illegal gold exploration in occupied territories of Azerbaijan – top official
Priests also fighting in ranks of Armenian Armed Forces (PHOTO)
Business confidence forecast to deteriorate in Georgia
Venture funds to be created in Uzbekistan to finance innovative developments
Trade turnover between Ukraine and Georgia decreases
Roads connecting number of Azerbaijan’s Agsu settlements reconstructed (PHOTO)
All climate resources must be mobilized to tackle global warming, UK Ambassador Laurie Bristow
Banking sector of Azerbaijan looks more stable than predicted - CBA chairman
Azerbaijan destroys another "Osa" anti-aircraft missile system of Armenian troops (VIDEO)
UK's coronavirus reproduction number drops slightly to between 1.1 and 1.3
All news