Japanese JOGMEC to conduct uranium exploration in Uzbekistan
By Aynur Jafarova
Japan will conduct uranium exploration in Uzbekistan.
The Japan Oil, Gas and Metals National Corporation (JOGMEC) and Uzbekistan's Navoi Mining and Metallurgical Combine (NMMC) signed an agreement on the conduct of uranium exploration at prospective areas in the Navoi region, a source in the Uzbek government circles told Trend on Wednesday.
According to the document, JOGMEC will implement geological exploration work in the Juzkuduk and Tamdiykuduk-Tulyantash prospective fields upon the terms of business risk for five years.
The minimum amount of funding for the first year of operations is $3 million.
According to the terms of the agreement, if the plan for the first year is not fulfilled, the investor should pay the cost of the unfulfilled operations to Uzbekistan.
According to the source, if deposits are revealed in the contracted area, the Japanese company will have the exclusive right to conduct direct negotiations and conclude a production sharing agreement with Uzbekistan.
It was reported that Uzbek President Islam Karimov has issued a decree which allows JOGMEC to conduct geological exploration work.
According to the Uzbek President's decree, the Japanese investor was provided with significant benefits. JOGMEC is exempted from all taxes and mandatory payments to the Uzbek Social Funds, as well as from customs duties on imported equipment for five years.
JOGMEC is the first foreign investor in Uzbekistan which has the right to explore and develop sandstone uranium deposits.
There are two types of deposits of sandstone and black shale type in the mineral resource base of the country. Sandstone deposits are developed by NMMC.
According to the Uzbek State Committee on Geology and Mineral Resources, uranium fields in Juzkuduk and Tamdiykuduk-Tulyantash are of the sandstone variety. The reliable total uranium reserves are estimated at about 55,000 tons.
Uzbekistan is not a consumer of uranium products. All produced uranium is exported. NMMC is the monopoly operator on mining, concentration and uranium export in Uzbekistan.
In last five years Uzbekistan intends to attract foreign investors to the exploration and development of uranium fields of black shale type which are not currently being developed in the country and require essential investments.
According to the estimations of the Uzbek State Committee on Geology and Mineral Resources, the prospect resources of uranium amount to 185,800 tons, some 138,800 tons of which is sandstone type while 47,000 tons - black shale type.
Japan is interested in secure supply of fuel as it starts to revive the nuclear energy two years after the catastrophe at the Fukusima nuclear power station. Due to this, Japan intends to cooperate not only with Uzbekistan, but also Kazakhstan and Mongolia.
Japanese corporations import uranium from Kazakhstan. Sumitomo and Toshiba has established joint ventures in the country with Kazakhstan's Kazatomprom.