Cooperating on Nuclear Energy

On April 22, Korea Electric Power Corporation (KEPCO) and Korea Resources Corporation (KORES) also called the ‘Korean Consortium,’ signed a memorandum of understanding (MOU) with KazAtomProm, a state-managed nuclear energy corporation of Kazakhstan, to jointly cooperate in the field of nuclear energy.

As a result, it will become possible for Korea to participate in the development of uranium mines in Kazakhstan, something which has been pursued countless times since six years ago.

According to the Korean Consortium, the main contents of the MOU include: one, the development of comprehensive cooperation in the field of nuclear fuel cycle between the two countries; two, the participation of Korea in the development of uranium mines possessed by Kazakhstan and production; three, the conditional introduction into Korea of molded and processed products manufactured in Kazakhstan that have passed certification tests; and four, science and technology cooperation in the field of nuclear energy through information exchanges, joint research, education and training, etc.

For the joint development of uranium mines in Kazakhstan, currently a key matter of the MOU, it is stipulated that Kazakhstan must provide the uranium mines that are under development or in the production phase to the Korean Consortium within one month of the signing of the MOU. Regarding this, the Korean Consortium plans to carry out value evaluations of the proposed mines through precise, actual inspections and economy analyses.

Meanwhile, uranium powder and sintered body produced in Kazakhstan will only be introduced to Korea on the condition that they pass Korea’s nuclear power plant certification test. It has been decided that, for the detailed conditions of the supply contract, the two sides will discuss the issue separately at a later date.

Leading up to the signing of the MOU, difficulties had arisen because of the perceived negative influence the introduction of molded and processed products manufactured in Kazakhstan would have on Korea’s nuclear fuel molded and processed industry. However, KEPCO has decided to focus on how best to create a foundation for long-term cooperation in the field of nuclear energy between the two countries and for the development of Kazakhstan’s uranium mines.

Kazakhstan, a country rich in resources, ranks No. 2 in the world in terms of uranium reserves. Furthermore, it is the No. 1 country in the world in terms of uranium production, capturing 27 percent of the world’s total uranium production in 2009.

In addition, Kazakhstan’s uranium mines mostly practice the ISL method of mining, meaning production cost are relatively inexpensive. Major corporations from France, Russia, Canada, Japan and China, etc are in the midst of joint development and production in the country.

The counterpart company, KazAtomProm, is a nationally managed uranium company with assets totaling $2.5 billion. The company intends to construct a nuclear fuel production system which is vertically integrated with all areas of the antecedent nuclear cycle (consisting of mining-conversion-enrichment-forming and processing).

Korea ranks No. 6 in the world in terms of the number of nuclear power plants it possesses and uranium consumption. As of 2009, Korea consumed 4,000 tons of uranium per year. Furthermore, there are plans for eight more nuclear power plants to be constructed by 2016, with the total consumption of uranium that year anticipated to be 6,000 tons, a 50 percent increase. As such, the development of overseas uranium resources is an urgent national matter.

One of the visions of KEPCO is to provide all customers, including corporations and families, with high-quality products and total electric power supply services.