RF, Mongolia sign agreement on joint venture to produce uranium.

25/8 Tass 131

ULAN-BATOR, August 25 (Itar-Tass) - Russia and Mongolia signed on
Tuesday an agreement on establishing a joint venture on prospecting,
production and processing of uranium. The document was signed in the
presence of the Russian and Mongolian presidents by the results of
bilateral negotiations.

"We sign an intergovernmental agreement on setting up a joint venture
for prospecting, production and processing of uranium. Russia has become
the first country, with which Mongolia signs an agreement on joint
operations on uranium. This is an important political signal," emphasised
the Rosatom head in Ulan-Bator, replying to questions by reporters.
According to Kirienko, the joint venture is based "on parity of
interests". He noted that last March 17, Rosatom and the Mongolian Nuclear
Energy Agency signed an interdepartmental document, saying that this
enterprise would operate under the "50x50" principle.
The venture in question, Kirienko continued, displays interest, above
all, in developing the Dornod uranium cluster as well as Mongolia's
East-Gobi district deposits.
"We are interested in Dornod also over the fact that our Priargunskiy
Mining and Processing Combined Works is located 200 kilometres from this
deposit. This will give us a chance to create a single infrastructure and
to invite our specialists," the Rosatom head explained.
Besides, Kirienko went on to say, "we are confident that reserves of
the Dornod cluster can be boosted".
The Rosatom manager did not specify how much Russia was ready to
invest in the development of the Dornod deposit, noting only that "one may
speak of several hundred millions of dollars".
Asked about the time of launching the Russian-Mongolian venture for
uranium production, Kirienko noted that this would be done in the near
future.
"We believe that the main work on establishing the joint venture can
be completed even this year," he added.
Kirienko specified that the AtomMon state-owned company would be the
venture's participant from the Mongolian side and Atomredmetzoloto from
the Russian.