Uranium One buys into Kazakh mine

Canadian miner Uranium One Inc. has closed a major deal to expand its presence in Kazakhstan. The Vancouver based company has bought 50% of the Karatau uranium mine from state-owned Russian company JSC Atomredmetzoloto (ARMZ) for US$420-million in stock and other payments. Uranium One’s share of production from Karatau is expected to be 2.3 million pounds of uranium at a very low cash cost of just US$14 a pound in 2010. And once the mine reaches full production (which is expected some time next year), Uranium One’s share of production is expected to be 2.6 million pounds a year. Uranium One has also entered an off-take agreement to sell product to AMRZ, and has been granted a right of first offer on ARMZ’s assets outside the Russian Federation should ARMZ put them up for sale. Uranium One has three other major projects in Kazakhstan: Akdala, South Inkai and Kharasan…read more at the Financial Post

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