Armz Uranium Holding Co.

ARMZ Uranium Holding Co. (JSC Atomredmetzoloto) is one of the leaders in the world uranium mining industry. It is among top three uranium mining companies by uranium output and ranks second by resource base. ARMZ Uranium Holding Co. is Rosatom's mining arm. In 2011, it produced 7,091.2 tons of uranium at facilities in Russia and abroad. ARMZ Uranium Holding Co. is the successor to the world’s largest uranium production complex set up by the Soviet Union. In 2008, all uranium mining companies in Russia, as well as a number of uranium joint ventures in the CIS and abroad, were brought together under ARMZ¹²

Ownership

JSC Atomenergoprom owns 80.475% of JSC Atomredmetzoloto’s shares. While 100% of JSC Atomenergoprom is controlled by Rosatom State Atomic Energy Corporation (ROSATOM). JSC Atomenergoprom is a Russian state vertical integrated company. Given that ARMZ Uranium Holding Co. is a state run company albeit control is not completely direct. The issue is understandable bearing in mind importance of uranium and possibilities of misuse of it.

Internationalization

From ARMZ strategy objectives it is clear that this is a company which aims to internationalize trough out the world and that main goal of the company is to become global leader in atomic segment. In the same section is written that this strategic goal is being worked towards taking into account state interests and the corporate goals of Rosatom. That is clear sign of state ownership of the company.¹³

Speaking about current internationalization in 2010, ARMZ Uranium Holding Co. consolidated a 51.4% controlling stake in Uranium One Inc., a Canada-based publicly-traded uranium mining company with a diversified portfolio of projects located in Kazakhstan, USA, and Australia.¹⁴That was a first move towards complete control of the company. In January 2013, ARMZ Uranium Holding Co. acquires 100% of Uranium One Inc. shares.¹⁵

Then in June 2011, ARMZ Uranium Holding Co. closed a deal to acquire a 100% shareholding in Australian-based Mantra Resources Limited, a publicly-traded company. Mantra Resources Limited's largest project is Mkuju River in Tanzania, with a total mineral resource base of about 45.9 thousand tons of uranium. The operator of the Mkuju River project is Uranium One Inc.¹⁶

Both investments were brownfield investments. By acquiring these companies ARMZ get global reach. Furthermore, it increased its market share, gain access to raw materials, acquire new technologies, and experienced staff as well as management.

Except these projects company handles exploration and mining projects in Russia, Kazakhstan, Canada, Namibia, Armenia, Mongolia, and Ukraine.

We should mention here joint venture which company undertakes with Armenian companies. Exploration for uranium and other mineral resources accompanying uranium has been carried out within the framework of the Russian-Armenian Comprehensive Cooperation Program for Peaceful Nuclear Power. Pursuant to an agreement regarding the establishment of a Russian-Armenian joint venture for exploration of uranium and other mineral resources, the Armenian-Russian Mining Co. (ARMC) was duly registered in Armenia in 2008.¹⁷

This International expansion will allow ARMZ Uranium Holding Co. to become a producer with the lowest possible costs across the board, as a result of highly effective assets in Kazakhstan, the US, Australia and Tanzania.