Source: www.miningweekly.com      June 10, 2010

Russian State-owned Atomredmetzoloto plans to use Canada-based Uranium One, in which it has agreed to take a stake of at least 51%, as a vehicle for future global expansion in the uranium-mining sector, director-general Vadim Zhivov said on Tuesday. The two companies announced earlier in the day that ARMZ will take a controlling stake in Uranium One, in exchange for stakes in two uranium mines in Kazakhstan and USD610 million in cash. “We would like to use Uranium One as a global platform for future growth, and all the future acquisitions and all M&A activity will be on the basis of Uranium One,” he said.

The deal will make the company one of the top five producers of the nuclear fuel by 2011, Uranium One CEO Jean Nortier said. ARMZ falls under Rosatom – the Russian State company controlling the nation's nuclear activities - and already holds 23% of Uranium One, most of which was acquired when it sold its 50% of the Karatau mine, also in Kazakhstan. Rosatom, like other nuclear utilities around the world, is actively looking to secure supplies of uranium to feed the growing number of nuclear reactors in operation and under construction.