The deal announced early this month, in which Russian major uranium miner Atomredmetzoloto Uranium Holding Company (ARMZ) will acquire a majority stake in Toronto- and Johannesburg-listed Uranium One, is only the latest step in 
the Russian group’s programme of acquiring or developing uranium projects outside 
its traditional base of Russia and Kazakhstan. And Africa is one of ARMZ’s target 
areas.

Indeed, it is already active in Namibia, where, in 2008, it established a joint venture (JV) with VTB Capital Namibia and Arlan Invest Holdings. 
This JV, SWA Uranium Mines, is exploring on two properties in the country.

Interestingly, as part of an official Russian nuclear industry delegation, ARMZ director-general Vadim Zhivov attended the inauguration of Namibian President Hifikepunye Pohamba (for his second term of office) and the swearing in of Prime Minister Nahas Angula on March 21 – the twentieth anniversary of Namibian independence. 

Economic Growth
In his speech, Pohamba stated: “The advancement of any country is supported by economic growth . . . the business community plays an important role in the vision of our nation . . . We will, therefore, continue to promote a conducive environment for both domestic and foreign investment.”

At the February 2009 Mining Indaba conference, in Cape Town, Zhivov highlighted why his group was interested in Africa. 
He cited the continent’s total uranium production, which amounted to 400 000 t/y, 
or 17% of the global total, and its known 
resources of the energy metal – 1 044 700 t (19% of the world total). 
In addition, Africa is highly prospective for the discovery of new uranium 
orebodies, and the climate and investment policies are largely favourable.

ARMZ, which is 80,345%-owned by Russia’s State-owned Rosatom corporation, also has projects in Armenia, Canada, Mongolia and Ukraine. 

Exploration Licence
In Armenia, it has created a JV with that country’s Ministry of Energy and Natural Resources, known as the Armenian-Russian Mining Company (ARMC). ARMC was 
granted a uranium exploration licence in April 2009.

In 2007, in Canada, ARMZ set up a JV with Cameco, Northern Basins Uranium, which is carrying out exploration in the Turqavik and Stuardson Lake areas.

Simultaneously, the two companies set up a second JV, Karkhu Geology, which is based in Russia and will undertake exploration in the Salmi and Shotkusa areas of the Eurasian country.

The deal with Uranium One, announced on June 8, will see ARMZ transferring its 50% interest in the Akbastau uranium mine and its 49,7% interest in the Zarechnoye uranium mine, both in Kazakhstan, to the Canadian/South African company. 
In addition, the Russian company will pay $610-million in cash for 356-million new common shares in Uranium One. 
The result, once the deal is completed, is that ARMZ will own at least 51% of Uranium One. Previously, the Russian group held 
23,1% of the Canadian/South African enterprise.

Uranium One has operating mines in Kazakhstan and is developing projects in Kazakhstan and Australia. 
The company used to own the Dominion uranium operation at Klerksdorp, in South Africa’s North West province, but put it into care and maintenance in 2008 and sold it for $37,3-million in cash last month.

ARMZ is the world’s fifth-largest uranium producer, with an output of 4 624 t of uranium (10% of global production) last year – Rio Tinto is the world’s number one uranium miner, with production of 8 055 t in 2009, followed closely by Cameco at 7 770 t last year, Kazatomprom, of Kazakhstan, with 7 600 t, and Areva, of France (7 500 t). 
In terms of uranium resources, ARMZ currently ranks second in the world, with 11%, with BHP Billiton in first place, with 44%. (Areva ranks third, with 10%, Cameco fourth, with 9%, and Kazatomprom and Rio Tinto joint fifth, with 8% each).

ARMZ’s assets include the Priargunsky mine in Russia, which has been in operation for more than 40 years and has produced more uranium than any other mine – more than 
130 000 t of uranium. 
In its programme of international expansion, the company benefits from having experience in all forms of uranium mining.

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