Uz-China Uran increases its charter capital up to $8.576m

In August 2009, CGNPC Uranium Resources Co (China) and the State Committee on Geology and Mineral Resources of Uzbekistan created Uz-China Uran JV LLC on parity with the charter capital of US$4.6 million to conduct exploration of uranium field Boztau in Central Kyzylkum.

The Government of Uzbekistan adopted a resolution “On introduction of changes to the resolution of Cabinet of Ministers “On creation of Uzbek-Chinese joint venture Uz-China Uran” from 28 August 2009.

The document said that the charter capital of the venture makes up US$8.576 million. At the same time, CGNPC Uranium Resources Co will hold 50% stake in the venture and forms its shared due to equipment and money resources.

Share of the State Committee of Uzbekistan on geology and mineral resources will possess 50% stake in the venture. The committee will provide geologic, geophysics and other information, received from geologic exploration of uranium at perspective fields Boztaus and Meshet fields in Navoi region.

The Government entrusted the Uzbek committee to ensure introduction of changes to the charter documents of Uz-China Uran by1 August 2013.

In 2010-2011, the venture carried exploration work at the contract area and invested over US$2 million. After the exploration, several uranium fields were found, but its parameters are not disclosed.

According to the committee, forecast uranium reserves of Boztau area is about 5,500 tonnes.

In line with the creation of the venture, the Chinese company will receive primary right to purchase products of Uz-China Uran on world prices. This is the first joint venture, which was created to develop uranium fields in Uzbekistan.

According to the Uzbek committee, explored and estimated uranium reserves in Uzbekistan makes up 185,800 tonnes.