KAZAKHSTAN: SHKOLNIK ON NUCLEAR POWER INDUSTRY

UNCLAS ALMATY 000006

SIPDIS


SENSITIVE

E.O. 12958: N/A
TAGS: ENRG PGOV KZ ECONOMIC
SUBJECT: KAZAKHSTAN: SHKOLNIK ON NUCLEAR POWER INDUSTRY


1. (SBU) Summary: The Kazakhstani Minister of Energy
spoke publicly on December 21 about the need for
Kazakhstan to develop a domestic nuclear power industry.
He cited Kazakhstan's enormous uranium reserves and
significant experience with nuclear technology as factors
in the decision. Although the government approved a
nuclear power program in 2004, only $12 million has been
allocated from the national budget and the GOK has not yet
chosen a reactor model. According to an Institute of
Nuclear Physics representative, at least one U.S. model,
Westinghouse's AP-600, is under consideration. End
summary.


2. (U) Kazakhstan should develop a nuclear power industry
by constructing nuclear power plants, Minister of Energy
and Mineral Resources Vladimir Shkolnik told journalists
in Astana on December 21. "Regardless of whether we want
it or not, we are becoming aware of the need to develop
the nuclear power industry. Kazakhstan will develop its
nuclear power industry, because it possesses the largest
uranium resources in the world, has mastered sophisticated
technology for producing nuclear power plant fuel and
recovering uranium, has more than 30 years experience
operating nuclear power stations for different purposes,
and has the necessary personnel," Shkolnik declared.


3. (U) Shkolnik added that Kazakhstan had not yet chosen
the type of nuclear power plant it would build. This open
question was delaying implementation of the nuclear power
program approved in 2004. The 2004-2008 program is aimed
at developing high nuclear technology and nuclear science
and at improving nuclear power engineering safety and
effectiveness. The program is to be financed partly from
the national budget, from which about $12 million has been
allocated as of now. Additionally, about $7.5 million is
expected to be invested by private companies and
investment funds.


4. (SBU) At a June 2005 conference on "Nuclear Power
Engineering in the Republic of Kazakhstan," Gadlet
Batyrbekov of the Institute of Nuclear Physics, National
Nuclear Center, gave a presentation on the choice of a
nuclear power plant for Kazakhstan. Criteria included
maximum safety, long life (at least 60 years),minimum
expense, and minimum importation from abroad. Batyrbekov
said that both small and medium sized reactors were under
consideration. Among medium-sized reactors, he mentioned
the U.S. AP-600 and Canada's CANDU-6 as having certain
advantages. Among small reactors, he listed the IRIS,
Uniterm (Russia),Smart (Korea),and MRX (Japan) as the
most attractive options.


5. (U) The government of Kazakhstan first announced plans
to build a nuclear power station on the shores of Lake
Balkhash in 1998. The cost was estimated at $2 billion
and the first unit was to begin operation in 2005. The
government suspended the project, however, due to negative
public response.

ORDWAY


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