Uzbekistan, Tashkent, July 9 / Trend, D. Azizov /
Uzbek President Islam Karimov has allowed the Japan National Oil, Gas and Metals Corporation (Jogmec) to conduct uranium exploration in two promising areas in the Navoi region, a source in government circles told Trend on Monday with reference to a presidential decree.
According to the decree, Jogmec will carry out geological exploration in Juzkuduk and Tamdiykuduk-Tulyantash prospective areas and develop the discovered sandstone-type uranium deposits for five years.
The agency's interlocutor said that Jogmec will carry out exploration work at its own expense under the terms of business risk. The minimum amount of financing for the first year will hit $3 million.
While revealing the deposits in the contracted area, the Japanese company will have the exclusive right to conduct direct negotiations and conclude a production sharing agreement with Uzbekistan.
This will be the first project in Uzbekistan. A foreign investor will have the right to explore and develop sandstone-type uranium deposits.
There are two types of deposits - "sandstone" and "black shale" in the mineral resource base of the republic. "Sandstone" deposits are developed by the Navoi Mining and Metallurgical Combine (NMMC).
Uzbekistan is not a consumer of uranium products. All uranium is exported. NMMC is the monopoly mining, concentration and export operator for uranium in Uzbekistan.
According to the Uzbek State Committee on Geology and Mineral Resources, the reliable total uranium reserves are estimated at about 55,000 tons.