Rosatom acquired 17% of Uranium One (Canada). In addition, Uranium One signed a deal with AtomRedMetZoloto (a Rosatom's subsidiary) to acquire a 50% stake in the Karatau uranium project in Kazakhstan. ARMZ thereby enters a strategic relationship with Uranium One, obtaining a 16.6% share of the company plus some $90m in cash and a further $60m depending on performance over the next three years. Part of the deal is an offtake agreement which will give ARMZ an option to purchase up to 20% of Uranium One's production if this is greater than its 50% share from Karatau. The Karatau project mines is located in the southern part of the Budenovskoye field in the Chu-Sarysu basin of southern Kazakhstan. The mine has been known as Budenovskoye 2, and started production last year. Karatau was set up in 2005 and since mid 2006 it has been a 50-50 joint venture between KazAtomProm and Tenex (Russia), with that share being taken over by ARMZ, and now sold on to Uranium One.
In 2008 the mine produced 655 t of uranium, and this year it is expected to produce about 1300 t, ramping up to 2000 t per year by 2011. The mine has indicated resources of 11,273 t of uranium and 771 t as inferred resources compliant with the NI 43-101 reporting standard.