Uzbekistan, Tashkent, July 10 / Trend, D. Azizov /
The Japan Oil, Gas and Metals National Corporation ("Jogmec") and Navoi Mining and Metallurgical Combine (NMMC) signed an agreement in Uzbekistan this week. According to it, the Japanese company will conduct uranium exploration at prospective areas in the Navoi region, a source in the Uzbek government circles told Trend on Wednesday.
According to the document, Jogmec will carry out geological exploration in Juzkuduk and Tamdiykuduk-Tulyantash prospective areas upon the terms of business risk for five years.
The minimum amount of funding for the first year of operations is $3 million.
According to the terms of the agreement, if the plan for the first year is not fulfilled, the investor must pay the cost of the unfulfilled operations to Uzbekistan.
According to the source, if deposits are revealed in the contracted area, the Japanese company will have the exclusive right to conduct direct negotiations and conclude a production sharing agreement with Uzbekistan.
It was reported that Uzbek President Islam Karimov has allowed the Japan National Oil, Gas and Metals Corporation (Jogmec) to conduct geological exploration.
According to the Uzbek President's decree, the Japanese investor was provided with significant benefits. Jogmec is exempt from all taxes and mandatory payments to the Social Funds of the Republic, as well as from customs duties on imported equipment for a period of five years.
This will be a first for Uzbekistan. Never before has a foreign investor had the right to explore and develop sandstone uranium deposits.
There are two types of deposits - "sandstone" and "black shale" in the mineral resource base of the republic. "Sandstone" deposits are developed by the Navoi Mining and Metallurgical Combine (NMMC).
According to the Uzbek State Committee on Geology and Mineral Resources, uranium fields in Juzkuduk and Tamdiykuduk-Tulyantash are of the sandstone variety.
Uzbekistan is not a consumer of uranium products. All produced uranium is exported. NMMC is the monopoly operator on mining, concentration and uranium export in Uzbekistan.
According to the Uzbek State Committee on Geology and Mineral Resources, the reliable total uranium reserves are estimated about 55,000 tons.
