OREANDA-NEWS. November 23, 2012.  President of NAC Kazatomprom Vladimir Shkolnik and President of Fuel Company of ROSATOM TVEL Yuri Olenin today have signed key legal documents which are necessary for implementation of an alternative option of the UEC Project.

The agreements reached by the parties as regards to the UEC Project implementation were stipulated in the baseline document – the Integrated Program of the Russia-Kazakhstan Cooperation in the Field of the Peaceful Use of Atomic Energy of December 7, 2006. The document provides for the projects of setting up joint ventures for uranium mining in an amount of up to 6,000 tons in the Republic of Kazakhstan and the project of establishment of a joint venture for uranium enrichment with a production capacity of 5 million SWU sufficient for processing the above uranium (UEC Project) in the Russian Federation.

On the 5th of July, 2010, NAC Kazatomprom and ROSATOM signed the Joint Statement on the implementation of the UEC Project pursuing the alternative option under which the joint venture JSC UEC has a share in the equity capital of Russia’s operating enrichment plant, i.e. the Urals Electrochemical Combine (UECC).

The shareholding and option agreements signed by NAC Kazatomprom and JSC TVEL today regulate the procedure of exercising the rights of JSC UEC shareholders, terms and conditions for carve-out of shares and management procedure of JSC UEC, and allow the parties to move to the final stage of the project.

The next stage will be the acquisition of a block of stock of UECC (25% + 1 share) by JSC UEC. Thereafter, the joint venture will get access to the enrichment services in an amount of 5 million SWUs a year.

The parties plan to start product deliveries under the alternative option of the UEC Project in the second half of 2013.