BAKU, Azerbaijan, November 20. Uzbekistan’s refound commitment to its uranium industry is a positive sign for uranium investors worldwide, Bryn Windsor, Senior Eurasia Analyst at PRISM Political Risk Management agency told Trend.
“Certainly, the fundamentals of the uranium sector in Uzbekistan are extremely positive. Uzbekistan is already the world’s fifth-largest producer, mining 3,500 tons of uranium last year, according to the World Nuclear Association,” the analyst said.
Windsor noted that this is a notable increase since 2015 and Uzbekistan also has great potential, with estimated untapped reserves of 131,300 tons, or 2 percent of the world’s uranium deposit volumes.
Further speaking, the expert said that international cooperation is obviously key in developing the uranium sector in Uzbekistan, given that international companies provide the expertise, equipment, and often financing to develop mines.
“Fortunately, the Uzbek administration is aware of this, as evidenced by the agreement reached with major French uranium company Orano. The government has effectively responded to international advice, as, for example, the government followed the recommendation of several IFIs, including the World Bank and EBRD, to decrease the mining tax from 10 to 8 percent to make the Uzbek mining market more attractive for international investors,” he explained.
Windsor said that Uzbekistan’s challenge will be managing its international cooperation and drawing on expertise from a range of partners. Overreliance on one specific partner – for example, Russia's RosAtom – although easy, could lead to bigger problems down the line.
