Aug. 20. 2007
On August 20, Marubeni Corporation (Marubeni) agreed to transfer to Toshiba Corporation (Toshiba) 22.5% of its 55% interest in a company engaged in the business of uranium mine development and production projects in the Republic of Kazakhstan.
This project entails the development of the Kharassan uranium mine in southern Kazakhstan. Kyzylkum LLP is developing the Kharassan-1 uranium deposit and Baiken-U LLP is developing the Kharassan-2 uranium deposit. Kazakhstan’s state-owned nuclear fuel enterprise “Kazatomprom” has invested in both companies. Marubeni, The Tokyo Electric Power Company, Incorporated (TEPCO), Chubu Electric Power Co., Inc. (Chubu) and Tohoku Electric Power Co., Inc. (Tohoku) (hereinafter, the COMPANIES) acquired an indirect ownership interest in Kyzylkum LLP and Baiken-U LLP this year. (The current investment ratio among the COMPANIES is as follows: Marubeni 55%, TEPCO 30%, Chubu 10% and Tohoku 5%.) The project is targeting the start of test production within this year, with a projected ramp to a full annual production of approximately 5,000MTU (combined) by around 2014. The COMPANIES have the right to obtain up to an aggregate annual quantity of 2,000MTU of the uranium concentrate produced from the two deposits.
The COMPANIES’ ownership interest in Kyzylkum LLP and Baiken-U LLP is thought to be one step toward the realization of the joint statement between the government of Republic of Kazakhstan and the government of Japan on cooperation for the peaceful uses of nuclear energy, which was signed during the government-private joint mission led by Minister Amari of the Ministry of Economy, Trade and Industry in April this year. Following this joint statement, the COMPANIES and Kazatomprom signed a protocol for strategic cooperation, aiming for the smooth operation of the project and for widespread mutual cooperation in the nuclear power industry.
In the spirit of the intergovernmental joint statement and the protocol for strategic cooperation between the COMPANIES and Kazatomprom, and from the perspective of a stable and long-term project operation, Marubeni decided to transfer 22.5% of its interest in the project to Toshiba. Marubeni will remain as the lead member of the project even after Toshiba’s involvement as a new member, and will do its best to realize the smooth operation and long-term stability of the project.
With the opportunity presented by this share transfer agreement, Marubeni will discuss with Toshiba not only its cooperation in the project operation, but also a wide range of other potential collaborations in the nuclear industry.
(Post-closing investment ratio: Marubeni 32.5%, TEPCO 30%, Toshiba 22.5%, Chubu 10% and Tohoku 5%)