Kazakh Kazatomprom aims to top global market in 2009

ALMATY, July 22 | Tue Jul 22, 2008 6:31am EDT

ALMATY, July 22 (Reuters) - Kazakhstan's state-owned nuclear company Kazatomprom aims to become the world's biggest uranium producer next year by raising production by 4,000 tonnes, its president said on Tuesday.

Kazakhstan, an oil-rich Central Asian nation west of China, is home to a fifth of global uranium reserves. At the moment Canada, Australia and Russia produce more uranium that it does.

Kazatomprom President Mukhtar Dzhakishev told reporters his company would boost production to 12,826 tonnes in 2009 from this year's planned 9,000 tonnes after opening six new production units.

"If the markets permit, Kazakhstan will assume the first place in the world in terms of production," he said.

Last year the former Soviet nation produced 6,637 tonnes.

Kazakhstan gave up its entire nuclear arsenal after the Soviet collapse in 1991. It now wants to develop a civilian nuclear programme to rival global nuclear giants.

Uranium exploration in Kazakhstan started in 1948, a year before the Soviet Union tested its first nuclear bomb in the north of the sprawling Central Asian state.

Dzhakishev said one of his goals was to create a full nuclear cycle in Kazakhstan and start producing nuclear fuel domestically in 2013, as well as other value added products.

Kazakhstan, which inherited mining technology and expertise from the Soviet Union, also plans to open its first nuclear plant in 2015-16.

It had earlier agreed with France's Areva CEPFi.PA to boost joint uranium output and set up a nuclear fuel assembly line to produce 4,000 tons of uranium per year until 2039.

Kazatomprom produces uranium both independently and in joint ventures with Areva, Sumitomo Corp (8053.T), Kansai Electric Power Co (9503.T), as well as Russian and Chinese companies.

Demand for uranium is booming as China, India and Russia build new reactors, and the West seeks to diversify energy sources and reduce greenhouse gas emissions. (Writing by Maria Golovnina, Editing by Peter Blackburn)

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