Information Papers

Uranium in Central Asia

(February 2008)

Please note: The country paper on: Kazakhstan should be consulted for information in that area.

This paper will deal with other countries in central Asia where uranium deposits having JORC or NI 43-101 compliant resources are known or understood to exist.

Kyrgyzstan

Kyrgyzstan's Kara Baltinski Mining Combine processes ore from Kazakhstan's Zarechnoye joint venture at the refurbished Kara Balta mill near Bishkek.  It holds a 0.67% share in the JV. After unsuccessful attempts to sell its majority stake in 2005-06, the government is reported to have accepted a tender from a Russian group for its 72% stake in the company. (UrAsia - now Uranium One - was bidding for a 72% interest in the Kara Balta mill which it intended to refurbish and use to refine its Kazakh output.)

Monaro Mining NL has eight exploration licences in the Kyrgyz Republic which are prospective for uranium. These projects include Aramsu, Utor, Naryn, Sumsar, Sogul, Djurasay, Hodjaakan, and Gavasai (the last few including base and precious metals). A number of other companies including Canada's Uranium One are also actively exploring for uranium.

Monaro in January 2008 signed a memorandum of understanding with Chinese resources group Sinosteel for it to take over exploration of its Kyrgyz projects, under which it could eventually own up to 60% of two new uranium mines in the country.

Several of the licences have CIS (Commonwealth Independent States) defined resources. However, these do not conform to JORC or NI 43-101 standards and a significant amount of further work is required before JORC-compliant resource statements can be reported.

Mongolia

Mongolia has a long history of uranium exploration commencing with joint Russian and Mongolian endeavours to 1957. Initial success was obtained in the Saddle Hills area of northeastern Mongolia (Dornod and Gurvanbulag regions) where uranium is present in volcanogenic sediments.

The main uranium prospect is the Dornod open cut mine in the far northeast of the country. Two separate deposits were mined from 1988 to 1995 and the ore railed 500 km to Krasnokamensk in Siberia for treatment by Priargunsky Mining & Chemical Enterprise. About 627 tU was produced.

Today the Canada-based Khan Resources owns a 69% share in the Dornod project through its subsidiary Central Asian Uranium Co. Ltd and Russia's Priargunsky Mining & Chemical Enterprise owns a further share. In 2007 Khan published NI 43-101 compliant indicated resource figure of 25,000 tU for the project, including probable reserves of 7000 tU. A bankable feasibility study is now being undertaken, with capital cost estimate being US$ 283 million and first production in 2011. Khan has applied for a mining licence from the Mineral Resources and Petroleum Authority of Mongolia (MRPAM).

Gurvanbulag, about 30 km west of Dornod, had extensive underground development down to 560 metres in the Soviet era. It has been held by the Western Prospector Group Ltd since 2004. A recent NI 43-101 inferred resource figure based partly on Russian exploration to 1989 is 9000 tU. This could support ten years production of 770 tU/yr. Western Prospector and its Mongolian subsidiary, Emeelt Mines, are undertaking a full feasibility study. Mine development cost would be about US$ 230 million.

Mardaigol is another deposit in this area, close to Dornod.

Canada's Denison Mines has a 70% interest in the Gurvan Saihan Joint Venture (GSJV), with the Government of Mongolia and a Russian partner, and also holds leases though its Mongolian affiliate International Uranium Mongolia XXK (IUM). GSJV has focused on defining ore which is amenable to ISL mining, and it interests in several Mongolian properties and in 2007 NI 43-101 resource figures were published for some. Indicated and inferred resources of 4400 tU are quoted for Hairhan, and 2400 tU Haraat.

In 2007 Century City entered into an agreement with China Nuclear Energy Industry Corp (CNEIC), a subsidiary of CNNC, to explore and develop uranium resources on its leases in eastern Mongolia.

Russia's Uranium Ore Mining Co (UGRK), plans to develop uranium deposits in Mongolia. In particular, the Erdes deposit is considered prospective for 500 tU/yr.

In April 2008 Russia and Mongolia signed a high-level agreement to cooperate in identifying and developing Mongolia's uranium resources.  Russia is also examining the feasibility of building nuclear power plants in Mongolia.

Tajikistan

See mention in Uzbekistan, Southern district.

Uzbekistan

Navoi Mining & Metallurgy Combinat (NMMC) is part of the Uzbekistani state holding company Kyzylkumredmetzoloto. Before 1992, all uranium mined and milled in Uzbekistan was shipped to Russia. Since 1992, all Uzbekistani uranium production is exported to the USA and other countries, through Nukem Inc. A total of 100,000 tu had been produced to the end of 2002.

During the Soviet era, Uzbekistan provided much of the uranium to the Soviet military-industrial complex, with anniual production peaking at 3800 tU in mid 1980s. Five "company towns" were constructed to support uranium production activities: Uchkuduk, Zarafshan, Zafarabad, Nurabad, and Navoi. with a combined population of some 500,000. However, uranium industry employment in 2005 was put at about 7000.

NMMC commenced operation focused on uranium and gold at the end of the 1950s in the desert region of Central Kyzylkum province. Early uranium mining was underground (to 1990) and open pit (to 1994), but is now all in situ leach (ISL).

The Northern mining district 300 km north of Navoi was established to mine uranium at Uchkuduk, from 1961, by underground and open pit mines, with ore treated at a central plant in Navoi. Since 1965 ISL uranium mining has been used at Uchkuduk and at Kendykijube. There is also sulfuric acid production in the district (possibly in conjunction with a copper smelter). Resources are 51,000 tU.

Resources in the Zarafshan (also 'eastern') mining district, about 160 km north of Navoi, are 50,000 tU. Sugraly was mined underground from 1977 and then ISL to 1994, when it was closed. NMMC had a joint venture with Areva to redevelop the Sugraly deposit with a reported 38,000 tU resources, but this appears to have lapsed

The Central mining district #5 at Zafarabad close to Navoi was set up in 1971 by another entity in Bukhara province and became part of NMMC in 1993. It mines the Bukinay group of uranium deposits by ISL methods. Mines include North & South Bukinai, Beshkak, Lyavlyakan and Tokhumbet. District resources are 52,000 tU.

The Southern mining district at Nurabad, Samarkand province, was founded in 1964 to mine the Sabirsay uranium deposit by underground methods, which continued to 1983. ISL took over. It was transferred from Tajikistan to NMMC about 1994. Other mines are Ketmenchi (ISL since 1978), Shark and Ulus. Resources are 13,000 tU.

MA#2 at Krasnogorsk previously mined the Chauly uranium deposit but appears to be focused on phosphorite now. It became part of NMMC in 1995.

NMMC produced 2260 tU in 2006 from the Northern, Central and Southern mining districts.

In September 2006 a Japan-Uzbek intergovernmental agreement was aimed at financing Uzbek uranium development and in October2007 Itochu Corporation agreed with NMMC to develop technology to mine and mill the black shales, particularly the Rudnoye deposit, and to take about 300 tU/yr from 2007. A 50-50 joint venture is envisaged.

The Uzbekistani State Committee for Safety in Industry and Mining (Gosgortekhnadzor) supervises ministries engaged in mining. The Nuclear Regulations Inspectorate under Gosgortekhnadzor has responsibility for the control and supervision of the research reactors and all nuclear and radioactive materials (including spent fuel) in Uzbekistan.

Main References:
OECD NEA & IAEA, 2006, Uranium 2005: Resources, Production and Demand
NMMC web site
Reports for Western Prospector Group and Denison Mines.