Report of overseas media tour sponsored by the Corporate Communications Department

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A 22-hour round trip

From Japan to the city of Almaty, one of Kazakhstan’s commercial centers, and to a desert which stretches as far as the eye can see. A bus carrying the tour participants drove through the desert, leaving a cloud of dust in its wake, and finally reached its destination after five hours of driving. The destination was West Mynkuduk, a uranium mine owned by Kazakhstan’s state-run nuclear power plant operator, Kazatomprom. Sumitomo Corp. and Kansai Electric Power Co. hold an equity stake in APPAK, a local company which has a stake to develop the mine. The trip to Kazakhstan was for the purpose of observing a ceremony which would be held to mark the opening of the mine. Media representatives in attendance had the chance to meet and interview a number of officials concerned with the project.

Kazakhstan is rich in natural resources, boasting the world’s largest deposits of lead and tungsten and second largest deposits of uranium. As the region comes to be viewed as having potential for future growth, European and Chinese corporations have one after another launched investment projects in the country. As Sumitomo Corp.’s planned uranium mine development project is the first joint project by Japan and Kazakhstan in Kazakhstan, both countries have high expectations for it. Symbolic of such expectations, officials from the governments of both countries attended the opening ceremony.

The opening ceremony began with the cut of a ribbon, which was done amid a storm of applause. This was followed by a speech by Mukhtar Dzhakishev, president of Kazatomprom. Then, Toru Furihata, executive officer of Sumitomo Corp., delivered a speech on behalf of the shareholders of APPAK in which he noted Japan and Kazakhstan’s good relationship and expressed hope for the economic benefits the joint project will provide.

The opening ceremony was followed by a visit to a uranium processing plant, where tour participants took a first-hand look at facilities for processing uranium solution after it is taken from the ground and examined samples of yellowcake, or semi-product of uranium concentrates. Of the uranium concentrates produced at this plant, 1,000 tonnes U to be sold to Japanese customers every year until 2010. Uranium exports on that scale are seen very positively in Japan, which is looking for stable sources of supply of the radioactive metal in view of its annual consumption, which currently stands at about 8,000 toners U. Nuclear power has been drawing a lot of industry attention as a source of clean energy. Officials representing three Japanese electric power companies that have formed long-term energy contracts in Kazakhstan attended the opening ceremony.

The entire tour lasted a total of 22 hours round trip. Despite a few problems, such as a flat tire caused by bad roads and sand getting into digital cameras, the representatives of the Japanese media organizations took full advantage of their participation, filming the opening ceremony and interviewing many people involved in the joint uranium development project. A number of their reports and interviews are expected to be broadcast in Japan.

Outline

Schedule:
June 3–4, 2008

Participants:
A total of five people from two television stations and one trade newspaper

Purpose:
To deepen the understanding media representatives have of Sumitomo Corp. Group’s global business operations by giving them the opportunity to take a first-hand look at the Kazakhstan uranium ore mine.

Main Activities:
Observation of opening ceremony for uranium ore mine (tour participants included the president of Kazatomprom, executive officer of Kansai Electric Power Co., Japanese ambassador to Kazakhstan, director of the Nuclear Facilities Development and Nuclear Fuel Cycle Industry at the Agency for Natural Resources and Energy of the Ministry of Economy, Trade and Industry, vice chairman of Nippon Export and Investment Insurance, research assistant with Japan Bank for International Cooperation and executive officer of Sumitomo Corp.), observation of PSP plant, observation of opening ceremony, meetings and interviews with concerned parties.

Brief Explanation

Republic of Kazakhstan

Kazakhstan is country in Central Asia, located between Russia and China. With a land area about seven times that of Japan, the country has a population of about 15.1 million. Kazakhstan has abundant natural resources, including the world’s largest estimated deposits of lead, tungsten and barite. The country’s estimated deposits of uranium, chromium, silver and zinc are the world’s second largest and manganese the world’s third. The country is also rich in oil and natural gas.

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