Russian atomic agency looks to diversify

“We want to establish a growth platform as a basis for being able to develop our further progress for integration, co-operation, and mergers and acquisitions in other markets”
Mr Kiriyenko was in Canada to drum up support for a deal under which Rosatom’s mining arm, known as ARMZ, will pay $610m to raise its interest in Uranium One from 17 per cent to 51 per cent. The Vancouver-based company will also gain a roughly 50 per cent stake in two uranium mines in southern Kazakhstan.
Uranium One’s shareholders are to vote on the deal on August 31.
While Uranium One will be the starting point for Rosatom’s expansion in uranium extraction, the group is also seeking opportunities in other parts of its business, including closer co-operation with the US, its former nuclear protagonist.
The Russian group already controls 40 per cent of the world’s uranium enrichment capacity and 17 per cent of the fuel fabrication market. It supplies fuel for 74 nuclear reactors in 15 countries, and is in talks to build 18-20 power plants.
Mr Kiriyenko disclosed Rosatom was in talks to build a uranium enrichment plant in the US. He declined to provide details on the deal, which cannot go ahead until a US-Russian civil nuclear co-operation agreement put before US Congress in May is approved.
Rosatom is also seeking partners for its domestic enrichment facilities, whose capacity is well above Russia’s own needs. It has signed a deal with a Kazakh agency, and is in talks with a prospective partner from Ukraine.
Mr Kiriyenko said that, while Russia had abundant uranium reserves, Uranium One would provide access to lower-cost material in other parts of the world, especially Kazakhstan and Africa.
He dismissed criticism of Rosatom’s role in providing fuel and other services for Iran’s Russian-designed Bushehr nuclear power plant. All the plant’s fuel would come from Russia and all spent fuel rods would be returned there, he said. “We are confident the Bushehr nuclear power plant cannot be used for military purposes. Technologically, it’s impossible.” Iran began fuelling the plant last weekend.

"The Financial Times"