Kazakhstan could set up an international uranium foundation with an authorised capital of around USD one billion in 2009, said Mukhtar Dzhakishev, President of Kazatomprom, a national nuclear corporation. “I think, there will be around one billion dollars as far as the authorised capital is concerned,” he told journalists on the sidelines of the fifth international scientific and practical conference on Current Issues in Uranium Industry in Almaty, commenting on earlier announced plans to set up the foundation. Kazatomprom hopes that the shareholders of this foundation will be global uranium producers and consumers and financial institutions, but not speculators. Details of this proposal are being currently discussed, Dzhakishev said.
“The foundation has no analogue. It gives the opportunity to list shares. In fact, what we are creating is not so much a business company which is trying to make money on the growth of uranium prices, but a trading platform that will create the conditions for all players on the uranium market to make it more transparent,” he said. “The idea is extremely positive, and all those who encounter it and do not want the chaos that exists today on the uranium market because there are simply no proper price indicators - all of them will certainly participate,” said the Kazatomprom chief.
A state agency to regulate issues in the nuclear power industry may be established in Kazakhstan, he added. “The government faces the challenge of establishing a special agency to draft legislation and regulations for the nuclear power industry to avoid any obstacles on the path to nuclear power development. As for technical solutions in the sphere, we have that aspect fully covered,” he told journalists during a break in the Conference Topical Issues of Uranium Industry.
Kazakh Prime Minister Karim Masimov has said plans exist to set up a special state agency for nuclear energy oversight. He suggested creating it as part of Energy and Mineral Resources Ministry first. Kazakh Energy Minister Sauat Mynbaev said that one of the IAEA qualification requirements in order to enhance nuclear energy development is the creation of an independent nuclear commission.
Dzhakishev also that the International Uranium Fund, which Kazatomprom has proposed, would have equity of USD one billion at the initial stage. Kaztomprom wants to form a Fund with the world’s main uranium producers and consumers, and financial institutions as shareholders, possibly in 2009. “The idea is simple: you pay uranium into the Fund and get shares in exchange. The shares are equal to the value of the uranium placed with the Fund. So if a company buys one share, it will get one kilogramme of uranium,” he said.
The finer points of the initiative are being discussed. “There are no Funds like this. We’re not forming a commercial company which seeks to make profit on uranium price growth as much as a transparent trading floor for all uranium market participants,” he said. “The main distinguishing feature is that shares in the fund are backed by uranium. So there’s a direct incentive for, say, nuclear power plants to buy. A thousand shares will get you a tonne of uranium,” Dzhakishev said.
There’s no room for speculators in the Fund, he said. “We won’t be letting hedge funds in who buy today and sell in three months. This is an investment project and there will be specific rules for those wanting to take part,” he said.