Uranium production volume in the Republic of Kazakhstan for the 1st quarter of 2010 made up 4,060 tU

Such growth resulted from the increase of production at nearly all enterprises of the Holding, including the start of production at Baiken-U LLP and Kyzylkum LLP mines, and pilot production by JV Akbastau JSC.
Total income for the 1st quarter of 2010 made up 46 bln. 903 mln. tenge and that is 25% more than the income of the same period of the last year (equivalent in money is 9 bln. 504 mln. tenge). Operating income increased by 19% (equivalent in money is 6 bln. 890 mln. tenge) and made up 43 bln. 97 mln. tenge. The main item of income is the uranium products sale increase.
MAEK-Kazatomprom LLP, a part of the Holding producing energy resources and water for consumers in Aktau city and Mangystau oblast, produced 1, 146 mln. kW*/hour of energy in the 1st quarter of 2010, and 993, 7 ths. Gcal of the heat energy and 252 mln. m3 of water. These indexes are 5% higher in comparison with the same period of the last year.
Subject to the Act of the State Acceptance Commission dated February 18, 2010, the sites of industrial complex and geotechnological field of JV Inkai LLP, under the project “Inkai-1 ISL mine” on Inkai deposit were put into commission.
The following is planned for the 2nd quarter:
· Commissioning of the satellite plant Satellite 1, at site 2 of Inkai deposit (JV Inkai LLP). This will allow the enterprise to create a cycle from uranium mining to uranium oxide production, and to decrease the production costs. Besides, new workplaces are created;
· Commissioning of the housing development for 245 persons at field camp of Baiken-U LLP located in the rural district Baikenzhe, Zhanakorgan district, Kyzylorda oblast;
· Expansion of the pilot-commercial production of uranium by in-situ leaching method (ISL) at deposit «Budyonovskoye», site 2, carried out by Karatau LLP.
In March 2010, Kazatomprom and Japanese company Sumitomo Corp. signed the founding document on establishing the joint venture “Summit Atom Rare Earth Company” (SARECO) in the field of rare and rare earth metals (RM and REM). Kazatomprom will own 51% share in this JV, Sumitomo Corp. - 49%. Joint venture establishment is aimed at creating the vertically integrated company for high-value-added rare earth production. The general meeting of the JV participants was held in the 1st quarter of 2010. SARECO is expected to start its operation in the II quarter of 2010.