Toshiba may sell 10-per cent in Westinghouse to Kazakh firm for uranium reserves stake

Toshiba is looking at developing a partnership with Kazatomprom that would, under the deal, enable it to gain access to uranium reserves in Kazakhstan, which has the world''s second-largest uranium reserves after Australia, in exchange foe nuclear power technology.

The partnership with Kazatomprom would enable the companies to combine all parts of nuclear power generation process.

If the deal materialises, it would help Westinghouse gain access to an assured source of supply of uranium. The global prices of uranium have risen sharply over the past five years and Toshiba expects uranium supply to become tight as demand for nuclear plants rises in China and the US to meet growing energy needs and to cut carbon emissions from fossil fuels.

Over a hundred nuclear power plants are expected to come up globally in the next few years in the face of concerns over global warming and the fact that nuclear technology emits no greenhouse gases.

Toshiba intends to secure more orders from power companies in the US and other countries to build power facilities, which makes the Kazatomprom even more compelling for it.

The deal would also help Toshiba reduce the debt it incurred last year when it beat General Electric and Mitsubishi Heavy Industries after multiple rounds of bidding to buy out the Pennsylvania-based Westinghouse for $5.4 billion from the UK''s British Nuclear Fuels PLC, which had acquired it in 1999 for $1.1 billion. (See: Toshiba buys Westinghouse for $5.4 billion)
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At the time of the announcing the acquisition in February 2006, Toshiba had said that it would retain up to 51 per cent in Westinghouse and was discussing with other Japanese and US companies the possibility of taking a minority stake.