Itochu Corp has signed a contract with Uzbekistan to secure a stable supply of uranium for Japanese utilities, the latest attempt to diversify resource procurement in the country.

The Japanese trading firm said it has agreed a 10-year contract with Navoi Mining and Metallurgy Combine JSC, a state-run company involved in the mining and processing of uranium, Reuters reported.

"Through the long-term contract, we can contribute to securing a stable source of fuel for Japanese utilities companies," Itochu said in a statement.

Resource-poor Japan has been stepping up efforts to diversify its suppliers of natural resources, partly to reduce its reliance on China, after a diplomatic spat led Beijing to halt shipments of rare earth metals to the country for a couple of months last year.

Itochu declined to give details of the deal, but an industry source said the 10-year contract was expected to start this year and that Itochu was likely to get somewhere between 500 to 1,000 tons of uranium a year.

According to World Nuclear Association data from 2010, Uzbekistan has 111,000 tons of uranium, the 12th highest amount in the world, and produces an annual 2,429 tons, seventh globally.

Japan and Uzbekistan signed a memorandum of understanding on Monday to step up cooperation over the development of natural resources and further enhance trade and investment.

Uzbek President Islam Karimov is visiting Japan from Tuesday.

UzReport.uz

08.02.2011 16:44