Partners agree to develop Kara Balta mill

During a visit by Russian president Dmitry Medvedev to Bishek, Kyrgyzstan, a memorandum of intent on further cooperation to develop the Kara Balta uranium ore processing facility was signed by the Kyrgyz government, the Eurasian Development Bank (EDB) and Russia's Renova Group. According to the EDB, the agreement will see the partners cooperate "under a long-term project to build and develop a modern uranium processing complex capable of producing yellowcake." The EDB has allocated some $150 million towards the project for the removal of tailings waste that has accumulated at the Kara Balta mill over the past 50 years. Renova - which acquired a 72% interest in Kara Balta in March 2007 - will prepare strategic programs and projects to develop the Kara Balta complex, securing investment in its development and managing its operation. The Kyrgyz government will provide state support to the Kara Balta complex through the restructuring of its debt, providing land and issuing licences and permits. Since the start of 2008, the Kara Balta facility has produced over 600 tonnes of uranium and plans to produce more than 2000 tonnes in 2009.