Japan's Itochu seeks to unlock uranium potential with Uzbekistan deal

Itochu Corp, Japan's fourth-largest trading company, has announced its intention to sign a uranium development agreement with Uzbekistan. The company said it expected to finalise the agreement by the end of January.

Senior officials from Itochu will travel to Uzbekistan for discussions with representatives from the country's national geology and mineral resources committee. The visit will coincide with a trip by Japanese Trade Minister Akira Amari to Uzbekistan, indicating the governmental level of engagement in this anticipated agreement.

Specific details of the agreement have not been released, but according to a report from Nikkei business daily, Itochu is set to engage in talks on potential mining exploration in Uzbekistan.

In 2011, Itochu signed a 10-year purchasing agreement with Uzbekistan’s Navoi Mining and Metallurgical Company (NMMC) to buy uranium concentrate to fuel Japan’s energy sector.

As of May 2023, Uzbekistan was the fifth-largest supplier of uranium globally.

In an undated statement on Itochu’s website, the corporation reaffirmed is long-term partnership with NMMC and Uzbekistan in uranium supplies. “[We] have a long-term, large-scale uranium concentrate purchase agreement in place with Navoi Mining and Metallurgical Combinat (NMMC)” the statement said, adding: “Through initiatives such as this, we remain greatly committed to the stable supply of nuclear fuel to Japan and overseas.”

Uzbekistan's uranium resources, as detailed in the 2022 Red Book, are extensive and varied. The country has 49,200 tonnes (tU) of uranium in sandstones classified as reasonably assured recoverable resources, and priced up to $130 per kilogram of uranium (kgU). Additionally, there are 49,220 tU of inferred recoverable uranium resources in the same category.

Apart from these resources, Uzbekistan possesses 32,900 tU of uranium in black shales, which have not yet been tapped for commercial production. Due to the complexity of the black shale resources, the country is looking to engage foreign expertise to potentially develop the segment.