Japan Said to think Kazakh Uranium Imports Through East Russian Ports

Japan, the third-largest nuclear power producer, plans to ask Russia to permit it to ship uranium from landlocked Kazakhstan through ports along the country’s Pacific beach to cut the cost of importing the atomic fuel. A six-month study to assess the viability of shipments from Kazakhstan, the world’s leading uranium producer, via ports near Vladivostok will begin in August and be funded by the Japanese trade ministry, said two government officials in Tokyo with direct information of the plan, who declined to be named before an official announcement due this month.

The fuel is now shipped to Japan through western Russia and the proposed eastern route could help decrease costs for companies including Marubeni Corp., Tokyo Electric Power Co. and Sumitomo Corp. that have invested in uranium ventures in Kazakhstan. Supplies from the Central Asian country will help reduce dependence on Canada and Australia, which give more than half of Japan’s requirements. “Russia can play a key role and make a big change to Japan’s uranium supply chain in years ahead as Japan is increasing purchases from Kazakhstan,” said Tomoko Murakami, a nuclear analyst at the Institute of Energy Economics, Japan.

Almost all Kazakh uranium intended for Japan is currently shipped through St. Petersburg in western Russia for enrichment in the U.S., Canada and France before it reach Japan’s utilities, said Koji Furui, a spokesman for Sumitomo, which holds a stake in Kazakh producer Appak Ltd. several ore is also enriched in Russia, he said. Under the Japanese suggestion, the Kazakh uranium would be enriched in Russia, according to the government officials.