Atomenergoprom determines mechanism of transfer of shares of uranium mining companies into the ownership of Uranium Holding ARMZ

15.04.2008 // PR Department of Atomenergoprom OJSC

Atomenergoprom has determined the mechanism of transfer of the shares of PPMCA, Dalur and Khiagda uranium mining companies into the ownership of Uranium Holding ARMZ

Atomenergoprom OJSC has determined the mechanism of transfer of the shares of three Russian uranium mining companies: 80.30% stake in Priargun Production Mining Chemical Association OJSC (PPMCA), 97.85% of Dalur CJSC and 99.99% of Khiagda OJSC into the ownership of its subsidiary, Uranium Holding ARMZ (Atomredmetzoloto OJSC).

Relevant decision was made by the director of Atomenergoprom Vladimir Travin on Apr 10.

This is one more stage of the procedure for transfer of the shares of the above-mentioned companies into the ownership of Uranium Holding ARMZ, which, in line with the program for the reformation of the national nuclear industry, is supposed to consolidate all uranium mining companies in Russia and a number of joint ventures abroad.

PPMCA, Dalur and Khiagda have been managed by ARMZ since July 2007.

The shares of the companies will be transferred into the authorized capital of Uranium Holding ARMZ as a payment for its additional capital stock issue. The issue will consist of 3,961,468,175 ordinary nominal uncertified shares worth 1 RUR each. The shares will be placed by means of closed subscription at a price of 7.28 RUR per share. The issue is supposed to be completed by the end of this year.

Atomredmetzoloto OJSC (Uranium Holding ARMZ) manages all Russian uranium mining assets and is carrying out a number of projects in Kazakhstan. The total reserves of the companies set up by the holding in Russia and Kazakhstan makes up 583,500 tons. 100% of shares of Atomredmetzoloto belong to Atomenergoprom OJSC, which is part of Rosatom State Nuclear Energy Corporation.

Atomenergoprom OJSC (Atomny Energopromyshleny Kompleks) is a state holding that is supposed to comprise 89 nuclear companies and to cover the whole range of nuclear services: from uranium mining to NPP construction and electricity production. Atomenergoprom’s companies will have a total of 175,000 employees and an annual production of 200bln RUR (5.5bln EUR). Atomenergoprom is one of the biggest players on the world market: it has a 40% share in the world’s uranium enrichment services, 17% in nuclear fuel production, 8% in uranium mining, 28% in NPP construction (10 reactors). The director of Atomenergoprom is Vladimir Travin, the chairman of the board of directors – Sergey Kiriyenko.