russian uranium miner sees price up in 2010

* Spot uranium seen lower short-term before 2010 rise

* Project in Namibia with Areva to be discussed in October

By Chris Baldwin

LONDON, Sept 10 (Reuters) - Russia's state uranium miner sees the price of spot uranium likely falling further in the short-term, but then climbing back up beginning in 2010, the company's general director said on Thursday.

Atomredmedzoloto (ARMZ) general Director Vadim Zhivov said on the sidelines of the World Nuclear Association Symposium in London that an imperfect pricing system and price fluctuations from smaller deals had brought instability to the market.

"But we are convinced that even within these conditions...prices on the world market will rise in 2010-2011," Zhivov told reporters.

Spot uranium UX-U3O8-SPT on Thursday sold at $46 per pound, down from a record around $136 in June 2007.

Last November Zhivov said ARMZ planned to invest 203.6 billion roubles ($6.54 billion) by 2015 to fund massive expansion as global nuclear power sector demand grows. [ID:nLQ593978]

In July Russian Prime Minister Vladimir Putin granted ARMZ 50 billion roubles in order to finance the expansion, which in June saw it acquire 17 percent of Canadian miner Uranium One (UUU.TO) and secure licences to mine as far afield as Namibia.

NAMIBIAN PARTNERSHIP

Zhivov also said the company, which is the mining arm of Russian state atomic agency Rosatom, would hold negotiations with French state-controlled nuclear reactor maker Areva (CEPFi.PA) on "uranium projects" in October.

"We will meet with Areva in Namibia in the first week of October for discussions on uranium projects in Africa," Zhivov said.

Demand for uranium is growing as more nuclear power plants are being built by countries scrambling to cut emissions and reduce fossil-fuel dependence.

In 2007 Areva bought UraMin, the owner of the Trekkopje mine in Namibia, for $2.5 billion.

Russian President Dmitry Medvedev flew to Windhoek in June as part of a trip to promote Moscow's economic interests in Africa.

Namibia's uranium resources are attractive to the Kremlin, which has ambitious plans to build more than two dozen new reactors at home in the next 15 years.

In 2007 Namibia was the world's sixth-largest producer of uranium with around 2,879 tonnes, accounting for some 8 percent of world output, according to the World Nuclear Association.

ARMZ, which produces uranium in Russia and Kazakhstan, plans to produce 4,300 tonnes of uranium this year, up from 3,880 tonnes in 2008.

In June 2008 there were 439 nuclear reactors operating in 30 countries, with a total capacity of 372,000 megawatts. (Editing by Keiron Henderson)