Russia, Mongolia sign agt on uranium joint venture.

25/8 Tass 179

ULAN-BATOR, August 25 (Itar-Tass) -- Russia and Mongolia have signed
an agreement to create a joint venture for the exploration, production and
processing of uranium. The document was inked after bilateral talks. The
Russian and Mongolian presidents attended the ceremony.

"We are signing an inter-government agreement on the creation of a
joint venture for the exploration, mining and processing of uranium.
Russia has become the fist country with which Mongolia has signed a joint
uranium contract. This is an important political signal," the Rosatom
chief told the media in Ulan-Bator.
Kiriyenko said the joint venture was being created on the basis of
parity interests.
He recalled that on March 17 Rosatom and Mongolia's Atomic Energy
Agency signed an inter-departmental agreement stating that such ventures
would be operated on the 50/50 principle.
Kiriyenko said the emerging joint venture would in the first place be
interested in the Dornod uranium deposit, and also deposits in East Gobi.
"Dornod is of interest to us, because some 200 kilometers away from it
there is our Priargun Mining and Ore Dressing Combine. This gives us a
chance to create a unified infrastructure and use our specialists," the
Rosatom chief said.
Besides, as Kiriyenko said there was the certainty that the Dornod
deposit may prove greater than originally expected.
He refrained from speculating how much Russia would be prepared to
invest in the Dornod deposit, adding that hundreds of millions might be at
stake.
The Russian-Mongolian uranium mining joint venture may go operational
in the near future.
"We believe that the main work to create a joint venture may be
completed as early as this year," he said.
Mongolia's participant in the project is the state-run company
AtomMon. Atomredmetzoloto will represent Russia.
The Rosatom chief said that all uranium the venture will produce will
be exported, and not delivered to Russia.
"We have no aim of taking all mined uranium to Russia. Our own will
last for a hundred years," he said.
Russia's uranium reserves, in subsoil deposits and already in stock,
exceed a million tonnes. For this reason all uranium produced outside the
country is meant for export.
Kiriyenko said it remained to be seen where the uranium from the
Dornod deposit will be exported. A final decision is to be made by the
joint venture. Russia has no intention of monopolizing all uranium mining
work in Mongolia.
"The newly-founded joint venture has become the last missing link we
need to start commercial operation. We are aware that the Mongolian
government will be cooperating not only with Russia, but with other
countries, too," he said.
On September 1 ten specialists from Mongolia will begin a course of
instruction in Russia in the exploration and mining of uranium.