tantalum guff of interest , page-20

Toshiba agrees metals deal with Kazatomprom
By Jonathan Soble in Tokyo and Isabel Gorst in Moscow

Published: June 23 2008 03:00 | Last updated: June 23 2008 03:00

Toshiba, the Japanese electronics group, has signed a deal to secure supplies of rare metals for its nuclear power business from Kazatomprom, the state-owned Kazakh nuclear company, in the latest sign of strong demand for such commodities.

The agreement expands on an existing deal under which Kazatomprom supplies uranium for Toshiba-built nuclear plants. Kazatom-prom, the world's third biggest uranium producer, bought a 10 per cent stake in Toshiba's nuclear subsidiary, US-based Westinghouse, for $540m last year as part of a strategy to gain access to advanced nuclear power technology.

Kazatomprom processes rare metals such as beryllium and tantalum at its Ulba nuclear fuel plant in north Kazakhstan. The metals are needed to create the advanced alloys used in power-generating turbines, as well as other components. Growing use of such metals by a range of high-tech industries from battery-making to aerospace has pushed up demand while supplies have come under strain as China, the primary source of many rare metals, has moved to raise export taxes.

Toshiba said it planned to use more rare metals in future nuclear plant designs, making it necessary to secure stable supplies rather than rely on the open market.

The Japanese group said it would also study the possibility of manufacturing components for nuclear power stations with Kazatomprom.

Deepening co-operation between the two companies was discussed during an official visit to Japan by Nursultan Nazarbayev, Kazakhstan's president, this week. Kazatomprom signed a preliminary agreement last year with Japan's Sumitomo and Kansai Electric power jointly to develop nuclear fuel components.

The two Japanese companies are developing a uranium mine in Kazakhstan in partnership with Kazatom-prom.

Kazatomprom plans to overtake Canada and Australia to become the world's biggest uranium producer within five years.