Rosatom to produce rare -earth metals in JV with Kazatomprom
The joint investment of the Russian Atomredmetzoloto (ARMZ, uranium producing holding in the structure of Rosatom) and the Kazakh State company Kazatomprom into the production of rare-earth metals might amount to $500 mln, Kazatomprom’s head V. Shkolnik told Bloomberg. The investment is planned in the framework of a JV on the rare-earth metals formed by the partners. The memorandum was signed during the Rosatom’s head, S. Kirienko, visit to Kazakhstan on March 30th.
ARMZ refused to give any details saying only that they are interested in the development of the projects connected with the rare-earth metals and consider Kazatomprom one of the key partners in this segment. The Kazakh company says that the negotiations are at the initial stage adding that the partners might develop both the Kazakh as well as Russian deposits.
The rare-earth metals comprise 17 metals (yttrium, scandium, lanthanum and a group of lanthanides) used in metallurgy, optics, microelectronics, and other spheres including the defense industry. The leading world producer is China (about 90% of the market and up to 40% of the reserves). The reserves in the CIS countries, according to Metalresearch, equal to about 22%.
Atomredmetzoloto specializing in uranium production in Russia and overseas (including in Kazakhstan) has recently paid attention to other mining sectors as well. In the autumn 2010 the company said that in 2012 it wants to start the construction of a GOK at the Lukoyanovsky titanium - zirconium sand deposit in the Nizhny Novgorod region.
A source in the mining sphere said that ARMZ is one of the applicants for the Solikamsk magnesium plant (SMP). This company is controlled by the structures of the new stakeholders of Uralkaliy (S. Karimov with partners). SMP extracts ceric group metals out of loparite concentrate brought from the belonging to the company Lovozersky GOK in the Murmansk region. ARMZ refused to comment on the situation.
In its turn, Kazatomprom starts joint projects on rare-earth metals’ production with other foreign companies. On the basis of the Ulbinsk metallurgical plant a JV with Toshiba is formed (Kazatomprom holds 51%). A JV with the Japanese Sumitomo at the first stage will produce metals out of radioactive tailing storage in Aktau (Shevchenko). According to Mr. Shkolnik, the investment into the JV with Toshiba will amount to $100 mln, into the JV with Sumitomo - $200 mln.
BKS’ O. Petropavlovsky thinks that the investment of $500 mln into the production of rare-earth metals might pay back quickly. China, being a monopoly in this market, in 2010 cut its export to 30% of the previous level thus creating a raw materials’ deficit in the world market. As a result the prices for rare-earth metals rose 20-30%. The Ministry of Trade of China in October 2010 explained the cut by the fact that by keeping the production volume the same, the country’s reserves would have been enough for 15-20 years only. Earlier, according to Mr. Petropavlovsky, the USA used to produce rare-earth metals but in the 1990s the production was shut down, in particular, due to the ecological reason.
http://www.mineral.ru/News/44351.html
Translated by Galiya Davletgareeva
