ATOMREDMETZOLOTO TO PROSPECT FOR URANIUM IN ARMENIA FROM SEPTEMBER

Noyan Tapan
April 22, 2008

YEREVAN, APRIL 22, NOYAN TAPAN. The RA minister of environmental
protection Aram Harutyunian and the director general of
Atomredmetzoloto OJSC (Russia) Vadim Zhizhov on April 22 signed an
agreement on creating a closed joint-stock company (CJSC) on uranium
prospecting. Under the agreement, the company will be registered within
3 months, then it will receive a licence for uranium prospecting in
Armenia. It is planned to start geological prospecting in September
in Syunik marz.

According to A. Harutyunian, Armenia and Russia signed an agreement on
cooperation in the peaceful use of atomic energy as early as 2000. In
February 2008, the RA ministry of environmental protection and Rosatom
agency (Russia) signed a memorandum on development of cooperation in
geological exploration of uranium mines, mining and processing. This
memorandum confirmed the sides’ intention to found a joint venture.

A. Harutyunian said that the whole process of geological prospecting
will be transparent and in line with requirements of the Armenian
legislation. In his words, the Russian side envisages to make
investments of about 3 million dollars this year.

The authorized capital of the joint venture makes 92 mln 241 thousand
drams (over 297.5 thousand USD). A temporary account will be opened
in Areximbank CJSC (Gazprombank Armenia) in order to set up this
company. Atomredmetzoloto will pay (in money) 50% of the company’s
authorized capital. The Armenian side – the ministry of environmental
protection will pay its share of capital in property, as well as in
the form of geological and other information.

Atomredmetzoloto company manages all the uranium manufacturing assets
of Russia and implements some projects in Kazakhstan. The company
is in second place in the world by its uranium reserves. 100% of
Atomredmetzolot’s shares is owned by Atomenergoprom OJSC that makes
part of the Russian atomic energy agency Rosatom.