BY: WALLACE M. MAYS W M MINING COMPANY

South Inkai under construction

KAZAKH URANIUM A SUCCESS STORY LARGE RESOURCES KNOWLEDGEABLE AND PROFESSIONAL WORKFORCE FAVORABLE SUPPORT FROM POLITICAL LEADERSHIP DEMONSTRATED PERFORMANCE SOME IMPROVEMENTS NEEDED TO OPTIMIZE THE VALUE ADDED TO KAZAKHSTAN

IMPORTANCE OF RELIABILITY UTILITIES REQUIRE RELIABLE SUPPLIES TO SUPPORT THEIR INVESTMENT IN POWER PLANTS RELIABLITY IS IMPORTANT IN MARKETING URANIUM RELIABLITY IS IMPORTANT TO OBTAIN FINANCING OF MINES

WHAT IS RELIABLE URANIUM FROM A PRODUCER’S VIEWPOINT? A DIVERSITY OF SOURCES BY POLITICAL ORIGIN. TO REDUCE RISKS OF INTERUPTION INVENTORY TO SUPPORT DISRUPTION. PUBLIC ACCEPTANCE IN THE POLITICAL REGIME OF THE PRODUCER. RELIABLE, PRUDENT ENGINEERING AND RISK MANAGEMENT BY THE PRODUCER. SOCIALLY AND ENVIRONMENTALLY SENSITIVE MANAGEMENT BY THE PRODUCER. SUPPORT BY POLITICAL REGIME OF RELIABLE LAWS

Public Acceptance Factors Environmentally prudent management Socially responsible management Waste Management under control Non-Proliferation of Nuclear Weapons under control Reliable and safe operation of Nuclear Power Plants Cost Competitive to other sources of energy

Important Principles Maintenance of Competitive Factors Adherence to Market Economy Principles Diversification in Suppliers and Providers of Services throughout the Fuel Cycle supports Competition and Innovation. Respect of National Sovereignty Long Term Sustainable Infrastructure Development No preferential treatment given to any entity Cooperation between Nuclear Fuel Suppliers to support each other. Reduction of Trade Barriers Open and Transparent Markets Education of the Public. Open and Transparent Government and Responsible Laws.

KAZAKH CONSIDERATIONS In Transition from Socialist economy to Market economy. Political transition to democracy. Distrust of political and legal institutions by Investors. Need for more competitive service industries. Need for Modern Western style management. Need for more diversity in decision making. Need for separation of political and business organizational functions. Need for decentralized decision making.

Specific Proposals To provide reliable uranium, there is the need to attract investment. Evolution to Market Economy and Democracy need to progress more rapidly. Kazakhstan has difficult mix of Private Business and Government Controlled Industries, resulting in unfairly competitive and politically motivated market forces, distorting the orderly development of nuclear fuel sources from diverse sources for reliability of supply. Prudent management of long term price stability by prudent management of HEU resources by US and Russia would promote the orderly development of near term production and exploration and provide reliable fuel supply in an orderly ramp up to the Nuclear Build Up. Price stability may be necessary to reach an orderly development.

CONFLICTS TO RESOLVE in Transition to Global Mature Reliable Nuclear Fuel Market FINANCIAL MARKETS REQUIRE STABLE PRICES FOR PRIVATE MARKET FINANCING MARKET ECONOMY FACTORS PROVIDE COMPETITIVE DIVERSE SUPPLIES AND INNOVATION FROM SUPPLIERS MARKET ECONOMY FACTORS PROVIDE MORE RELIABLE LONG TERM STABLIITY SHORT TERM REQUIREMENTS MAY REQUIRE INNOVATIVE METHODS TO REACH LONG TERM RELIABLITY SUCH AS PRUDENT MANAGEMENT OF HEU.

GOVERNMENT POLICY GOVERNMENTS CAN SET THE FRAMEWORK FOR COOPERATION AND TRADE GOVERNMENTS CAN INFLUENCE A CHANGE TO PRO NUCLEAR INVESTMENT POLICIES BY INTERNATIONAL FINANCIAL INSTITUTIONS WHO HAVE HISTORICALLY CONSIDERED URANIUM MINING AND NUCLEAR INVESTMENT TOO RISKY. GOVERNMENTS CAN EDUCATE THE PUBLIC ABOUT RADIATION HEALTH SAFETY, URANIUM MINING AND NUCLEAR POWER TO EXPOSE MYTHS. GOVERNMENTS CAN PROVIDE REASONABLE TAX POLICIES TO ENCOURAGE INVESTMENT GOVERNMENTS CAN PROVIDE STABILITY IN LAWS

IMPORTANCE OF LEADERSHIP IN MANAGEMENT Need for performance based salary incentives. Need for fair adjustment of income between different levels of pay grades. Need for fair and open procedures. Need for fair and reasonable tax policies. Need for open and proper competitive tender processes for selecting contractors and disposing of state assets. A FAIR AND JUST SOCIETY AND A FAIR AND JUST MANAGEMENT PROVIDES FOR RELIABLE URANIUM PRODUCTION AND A RELIABLE NUCLEAR INDUSTRY.