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ARMZ Uranium Holding Co., Russia Vadim Zhivov, Director General INDABA, February 2009
Citation preview
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Uranium: Expanding Global PresenceARMZ Uranium Holding Co., Russia
Vadim Zhivov, Director GeneralINDABA, February 2009
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ARMZ• Uranium mining and supply
• Worldwide mining and exploration
• World’s #2 in uranium resources
• World’s #5 in uranium production
Tenex
• Uranium enrichment, export sales
• 40% of world’s uranium enrichment capacity
ARMZ In Russian Nuclear Industry
Energoatom• Nuclear power plant
operation, generation and sales
Rosatom
Full nuclear fuel cycle, NPP construction, power generation
TVEL
• Nuclear fuel fabrication, export sales
• 17% or world’s nuclear fuel market (every 6th reactor)
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USSR
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ARMZ: successor to the largest uranium miningcomplex created by the USSR
Historical uranium productionUSSR
• USSR - the world’s largest uranium
producer in the 1980’s – up to 15,5
thousand tons/year
• USSR - world’s largest uranium
resources: 1,700 thousand tons (incl.
Russia’s 546 thousand tons)
• Widest geography – mining in all
republics of USSR, countries of
Eastern Europe, Mongolia, China , etc.
• All known uranium mining methods
• USSR and USA simultaneously
developed the most effective mining
method – in-situ leach
Cumulative U production:
365,7Kt
World record 15,5Kt
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• 2nd in uranium resources
• 5th in uranium production
• Russia’ s only uranium mining company
• ARMZ owns Priargunsky - the world’slargest mine as for aggregated historical Uproduction - over 130 thousand tons ofuranium
• Highly diversified by mining technology andgeography
– Russian miners use all known uraniummining methods
– Exploration and mining projects in 3continents
• 14 thousand employees in production sitesand service companies
ARMZ Today
BHP Billiton33%
ARMZ53811%
2nd place
AREVA 10%
Rio Tinto9%
Cameco7%
Kazatomprom 7%
Uranium One4%
Navoi3%
VostGOK3%
Paladin Energy2%
Others11%
Rio Tinto 18%
CAMECO 16%
AREVA 16%
Kazatomprom11%
ARMZ 36878%
5th place
BHP Billiton
8%Navoi5%
Uranium One3%
Paladin Energy2%
Others13%
2008 Uranium resources, thous. tons (in-situ)
2008 Uranium production, tons
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ARMZ Growth Results 2006-2008
• Number of subsidiaries and projectsincreased from 4 to 18
• 18% growth of uranium output in twoyears
• 4-fold growth of uranium resources
• 16 uranium deposit licensed
• New joint ventures set up to mine, drilland explore for uranium in Russia andabroad, new management and servicecompanies in operation
3190 3527 3687
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Priargunsky Zarechnoe
Dalur Khiagda
2006 2007 2008
2006 2007 2008
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0
Tons
Thou tons
145
538
2006 2007 2008
Operational and under construction facilities
Planned mines Exploration ventures and new projects
Management and service companies
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ARMZ Steady Development Through Financial Turmoil
• Strong demand for ARMZ’s uranium isguaranteed by long-term contractswith Rosatom nuclear companies
• Business of strategic importance,ARMZ enjoys support of its majoritystakeholder – Rosatom
• First-class borrower: debt financingfully backed by assets
• Superior technologies and expertisemake ARMZ a partner welcomeglobally
• Most of uranium is sold through long-term contracts insensitive to short-term market fluctuations
? ?What should we do?
ARMZ has the answer: Uranium Mining!
! !
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• ARMZ plans to ramp up mines’
uranium production capacity to
20 thou tons per annum by
2025
• Major part of required
financing will be raised in
financial markets and/or
contributed by strategic
investors
ARMZ Production Outlook
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ARMZ uranium production capacity
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ARMZ Global Presence
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4
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Operational and under construction facilities1. Priargunsky
2. Khiagda
3. Dalur
4. Akbastau (Karatau)
5. Zarechnoe
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Planned facilities
6. Elkon
7. Gornoe
8. Olovskaya
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Exploration ventures and Prospective projects
9. Mongolia
10. Canada
11. Russia
12. Namibia
13. Armenia
14. Ukraine
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99Source: OECD / IAEA Red Book - 2007
Why Africa?
• Large cumulative uranium production –
400 thou tons, 17% of world total
• Significant uranium resources – 19% of
world’s total (1044,7 thou tons)
• High potential for increasing uranium
resources – about 50% growth resulting
from exploration in last 2 years
• High potential for new uranium deposits
discovery
• Effective methods of uranium mining –
open-pit, heap-leach, and, possibly, in-situ
leach
• Favorable climate and investment policy
Uranium exploration results in Africa
ton
s/ye
ar
Uranium Production in Africa/ South Africa
1010
• Existing infrastructure• Water supply• Favorable climate
• Government support for uranium exploration• Stable political, economic, and financial situation• Developed mining industry
• Potential uranium resources > 10 thou tons• Favorability for sandstone type mineralization
• Mine production capacity > 700 tons a year• Identified uranium resources > 10 thou tons• Open pit or ISL mining method• Production cost < $80/kg
ARMZ Uranium Project Preferences
Mine technical and economic preferences
Geological favorability for
exploration
Country political and economic
aspects
Infrastructural preferences
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• ARMZ developed a database on
uranium deposits and occurrences in
Africa
• ARMZ, being a state-owned company,
cooperates with governmental,
investment, mining, and exploration
organizations
• Uranium mining countries with high U
potential - Namibia, Niger, South
Africa
• A few countries susceptible to
exploration for uranium
Where in Africa?
1
2
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2
1
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3
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3 JV SWA Uranium Mines
Established in 2008 for uranium exploration in Namibia
The JV partners are ARMZ, VTB Capital Namibia and ArlanInvestment Co.
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2
1
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ARMZ Contribution to Africa
• Bringing investments into
African mining sector
• Infrastructure development in
regions for potential uranium
sites
• Additional tax proceeds for
national budgets
• Modern environmentally friendly
technologies of uranium
exploration, mining and
processing
• Creating new jobs
• Unique new expertise for Africa’s
mining industry
1313
ARMZ is open to partnership
in uranium exploration and mining in Africa
Why Mining INDABA 2009?
• ARMZ formal introductions to
African mining community
• Voicing ARMZ uranium-related
plans for Africa
• Meeting colleagues and building
relationships with government
bodies, exploration and mining
companies, financial institutions
• Sharing news and views in
uranium-related activities