Dec 26 - Jiji Press English News Service

Japan's Kansai Electric Power Co. will outsource uranium reconversion, a process to convert enriched uranium gas into solid uranium for use in nuclear power plants, to Kazakh state-run nuclear energy firm Kazatomprom, it was learned Wednesday.

The outsourcing will be made through Tokyo-based Nuclear Fuel Industries Ltd., informed sources said.

A memorandum of understanding for the deal will be signed later in the day, the sources said. Major Japanese trading house Sumitomo Corp. coordinated talks on the deal.

Kazatomprom is expected to launch uranium reconversion for Kansai Electric at a plant in Kazakhstan in 2010, the sources said.

Kansai Electric hopes to ensure stable supply of nuclear fuel by diversifying its partners for fuel processing, which now concentrate in Europe and North America, according to the sources.

In April, representatives of Kansai Electric visited Kazakhstan as members of a mission led by Japanese Economy, Trade and Industry Minister Akira Amari. During the visit, they confirmed an agreement with Kazatomprom regarding cooperation on nuclear fuel procurement.

Kansai Electric is also collaborating with Kazatomprom on uranium mine development.END

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