Kazakh uranium miner to build acid plant by 2010

ALMATY, Nov 13 (Reuters) - Kazakhstan's state nuclear company plans to build a 500,000-tonne-per-year sulphuric acid plant by 2010 to meet a shortfall of the main chemical reagent used in its uranium production. Kazatomprom, the world's third-largest uranium producer, said on Tuesday it would build the plant in southern Kazakhstan to serve two new mines being built in Kyzylorda region, which together will mine 5,000 tonnes a year of uranium.

"Construction will begin in March 2008. We plan to put the plant into production in the second quarter of 2010," an official from Kazatomprom's press service said by telephone.

The state company did not say how much the project would cost or how it would be financed.

Sulphuric acid is the main chemical reagent for production of uranium by the in-situ leaching method. A shortfall led Kazatomprom's Canadian partner, Uranium One (UUU.TO), to cut its production forecasts last month. [ID:nN30224684]

By 2010, when the new sulphuric acid plant is due to come on stream, Kazatomprom aims to become the world's largest uranium producer.

The company mines uranium on its own and within a series of joint ventures with Russian firms, French group Areva (CEPFi.PA), Canada's Cameco Corp (CCO.TO) and Japan's Sumitomo Corp (8053.T) and Kansai Electric Power Co Inc (9503.T).

(Reporting by Tatyana Seroshtanova, writing by Robin Paxton; Editing by Chris Johnson)