02.09.2009

     A subsidiary of China Guangdong Nuclear Power Co (CGNPC), Uranium Resources Co, has set up a joint venture with the [Uzbek] State Committee for Geology and Mineral Resources, which will be involved in prospecting for black-shale uranium deposits at the promising Boztau area in [central] Navoiy Region, a source in the country's government circles has told a Regnum Novosti news agency correspondent.

     According to the source, on the eve [of Independence Day], Uzbek President [Islom Karimov] signed a decree approving the setting up of the Uz-China Uran joint venture as part of an uranium cooperation agreement signed by the Uzbek State Committee for Geology and Mineral Resources and the Chinese state committee for development and reforms.

     "Uz-China Uran that has an authorized capital of 4.6m dollars with equal shares (CGNPC Uranium Resources' shares are monetary assets and equipment, and the State Committee for Geology and Mineral Resources' shares include geological, geophysical and other data on the Boztau area) will begin geological prospecting under the terms and conditions that it might face business risks," the Uzbek official said.

     "The Chinese company, as a foreign investor, will have rights of priority for purchasing Uz-China Uran's products at world prices," the source said.

     "The approved document stipulates that, on the result of the geological prospecting, a decision might be taken to set up a plant to extract and process uranium ore, and in case the geological prospecting bears negative results the Chinese company will not be reimbursed", the source concluded.