Alexander Ignatyuk, expert of Energocapital IC

– By using the resources of other countries we are enhancing our political and economic influence

ARMZ Uranium Holding Co. AKA Atomredmetzoloto, the corporation authorized and appointed by Rosatom State Corporation for Nuclear Energy to supply feedstock to the Russian nuclear industry, today announced that it has signed a definitive purchase agreement to sell a 50% interest in the Karatau Uranium Mine in Kazakhstan for consideration of 117 million common shares of Uranium One Inc. ( UUU – Toronto Stock Exchange, JSE Limited [Johannesburg Stock Exchange]) through a private placement and a cash payment of US$ 90 million. The agreement provides for an increase in the cash payment amount in the future depending on the financial results of the Karatau Uranium Mine over the next three years. Thus, ARMZ Uranium Holding Co. acquires a 16.6% interest in Uranium One Inc. with an option to increase it to 19.95%. Concurrently with the purchase agreement, ARMZ Uranium Holding Co. has also entered into a long-term offtake agreement and a framework agreement providing for a strategic relationship with Uranium One, both of which will become effective upon closing of the acquisition.

Atomredmetzoloto has availed itself of the crisis and has managed to get a stake in the capital of an international uranium mining company and to enlarge its resources by singing an agreement for the use of the resources of Karatau and Uranium One. In any case, this deal will give us no less uranium than we would have had from Karatau without it.

This is part of Rosatom’s demonopolization and diversification policy: the company is enlarging its presence on the international market and is increasing its capacities for effectively implementing its NPP construction projects abroad.

Deviation from the traditional formula of use of own resources will give our nuclear industry certain geo-political benefits. In other words, by using the resources of other countries we are enhancing our political and economic influence.