Posted on 12/07/2010 7:18:03 PM PST by thesellout
ARMZ, the uranium mining arm of Russia's state-owned atomic energy monopoly, Rosatom, is taking a 51 percent interest in Canada's Uranium One.
The acquisition will make ARMZ the world's fourth largest uranium mining company, according to a report in the Financial Times, and is part of the company's program of aggressive international expansion.
It already has deals or is in serious discussion of deals with France, India, and South Korea, and hopes to be the world's second largest producer within a decade, trailing only Kazakhstan.
Evidently the deal is structured financially in a way that will enable the paired companies to boost production not only in North America and Russia but also Kazakhstan, Australia, and possibly South Africa. Mainly because of new nuclear plants coming online in East Asia, world uranium prices have climbed about 50 percent this year, from $40 to $60 per pound, and ARMZ is guessing they might stabilize in the long run in the range of $70-80 per pound.
Acknowledging concerns about Russia's trustworthiness as a business partner and its growing role in the U.S. nuclear fuels market,
ARMZ director general Vadim Zhivov conceded that the company has a "long hard road" to show Canadian investors that "a Russian state-owned company can . . . play by the rules of the modern developed world."
ARMZ's proposed acquisition of Uranium One
won the approval of the U.S. Committee on Foreign Investment in the United States last October,
and last week the company's management was honored with an excellence award by Platts, the McGraw Hill energy speciailists.
I would think that there would be enough Uranium in Russia alone, to keep any company busy.
Why not. They are also letting the Chi Coms have drilling leases on our natural gas. Spread that wealth around. Let everybody have our resources except us.
Russians to gain US uranium foothold
By Ed Crooks in New York
Published: December 5 2010 21:03 | Last updated: December 5 2010 21:10
A Russian state-owned company is set to control up to half of US uranium output by the middle of the decade, after American authorities gave the go-ahead to the partial takeover of Uranium One of Canada by ARMZ.
The deal is the latest sign of how, after a three-decade hiatus in new reactor projects, the US has lost control of key parts of the nuclear supply chain.
It also comes amid a sharp rise in the price of uranium on hopes that reactor construction will accelerate, led by China and other emerging economies.
ARMZ, the uranium mining division of Russia’s state-owned Rosatom nuclear power group, has taken a 51 per cent stake in Toronto-listed Uranium One which owns mines in Wyoming.
The two companies aim to bring the mines into production next year, and plan to increase output to 2m-4m pounds of uranium oxide per year by 2015. Total US uranium output will be about 4m pounds this year.
Vadim Zhivov, ARMZ’s director-general, said he understood concern about the deal. But he added: “It is 20 years since the Cold War, and no single country will be able to solve the energy challenges of the world.”
The tie-up was approved in October by the Committee on Foreign Investment in the US (CFIUS), the government agency that vets foreign takeovers of US companies for possible national security implications.
In November, the US Nuclear Regulatory Commission, which controls the ownership and operation of nuclear power facilities, also gave the go-ahead.
More than 80 per cent of US uranium consumption is imported, and Russia is one of its largest suppliers.
Nevertheless, Mr Zhivov acknowledged the company had a “hard road ahead” to prove to Uranium One shareholders that “a Russian state-owned company can . . . play by the rules of the modern developed world.”
Although China’s nuclear investment programme will make it the largest source of growth in the world uranium market, ARMZ plans to serve the US market from its Wyoming mines.
Once the deal closes, ARMZ expects to be the world’s fourth-largest uranium producer, and plans to ramp up production in Kazakhstan and the US to become the second-largest by 2015, behind only Kazatomprom of Kazakhstan.
The CFIUS originally declined to investigate US port deal by Dubai - under pressure they reevaluated it - over the already legislative 45 day law - and denied it. I guess this time it was all okay since it’s Obama in power.
The one mine is close to where I live and the state of Wyoming tried to block the sale.
I don't know if US companies can get away with this in foreign countries, but it seems highly unlikely.
Chinese government money is buying one of U.S.A.’s biggest mines
A brand new freeper name started up just for this very thread. Now, ordinarily I’d welcome you to the freerepublic but you seem to already know your way around really well. Been lurking here for years maybe?
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