ARMZ daughter received a license to mine uranium in Tanzania (addition)

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The uranium "daughter" of the Russian state corporation Rosatom was able to get a license to produce the radioactive element in Tanzania, while building productive assets after the sharp fall in the uranium market because of a major accident at the Japanese Fukushima in 2011.

Holding Rosatom — ARMZ (ARMZ), waiting for since last December, the license to mine uranium in the giant field Tanzanian Mkuju River, which can help Tanzania enter the top ten countries in terms of production and stockpile uranium Russian nuclear industry.

ARMZ in an attempt to enter the three largest uranium producers in the world have used postfukusimovsky collapse of uranium prices for international expansion and in 2011 became the operator of the project Tanzanian Australian Mantra Resources about a billion dollars.


ARMZ previously acquired control of the Canadian mining company Uranium One Inc with assets including in the uranium-rich Kazakhstan, and in March this year, has received approval of its shareholders to consolidate 100 percent of the shares.

After the announcement of the transaction with ARMZ Uranium One, analysts warned that the consolidation of total control over the Canadian company in the Russian holding threatens to drop the supply of uranium to China, Japan and the United States.(Emphasis added)

Customers outside of Russia hardly rely on uranium from Tanzania.

"Uranium is produced within the project Mkuju River, will be directed to the needs of the Russian nuclear industry," — said the representative of ARMZ Reuters.

Holding plans to comply with the obligation to supply uranium after 100 percent consolidation of Uranium One, told reporters in January this year, the chairman of the board of directors Atomredmetzoloto Vadim Zhivov.


The price of uranium, the compounds which are used as fuel for nuclear reactors, fell sharply after the Fukushima accident in March 2011 and have not been able to recover.

Month April uranium futures to the closing of trading on the New York Mercantile Exchange on Friday was $ 42.15 per pound, compared with $ 68 per pound before the earthquake and tsunami in Japan.

ARMZ — mining subsidiary of Russia’s nuclear regulator, which is also engaged in the construction of nuclear reactors in Russia and abroad.

After the Fukushima accident, some countries such as Germany and Japan, headed for rejection of nuclear energy, while the major emerging economies — China, India and Russia — are planning to launch new reactors.

In Russia today 33 operating nuclear plant, 10 are under construction, according to the World Nuclear Association. Everything in the world has 435 operating nuclear power units, 65 are under construction and a further 167 are projected.

To begin work on the Tanzanian field holding ARMZ left to sign an agreement to jointly develop with the government, and get the green light from the Tanzanian environmentalists, the company reported earlier.

"Getting a special mining license — the first license to mine uranium in the territory of the United Republic of Tanzania — is a real breakthrough and a direct result of two years of work coordinated at all levels" — leads the company Zhivova words.


Under new legislation, Tanzania, the government should get a stake in Mkuju River as a strategic project for the extraction of minerals. In exchange, the Russian company can get a package of tax benefits from the government. So far, ARMZ not disclose the size of the share of Tanzania’s future in the project.

The average annual production from the field Mkuju expected to reach 4.2 million pounds of uranium oxide (about 1,900 tons), according to the feasibility study, prepared by Mantra for the transaction with ARMZ.

The remaining permits the company planned to get to the summer of this year, after which it will be able to begin construction of a mine at the field, which will last about two years, according to the feasibility study of the project.

Most of the world’s uranium is mined Kazakhstan, Canada and Australia. Russia, according to the World Nuclear Association in 2011, now ranks 7th place.

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