Russian billionaire Vladimir Potanin, who shares joint control of metals giant Norilsk Nickel, signed a deal on Monday to help Russia mine uranium deposits at home and abroad, the atomic energy agency said.
Potanin, president of the Interros business empire, signed the deal with Sergei Kiriyenko, head of Russia's atomic energy agency, known inside Russia as Rosatom.
"The sides intend to cooperate in geological exploration and exploitation of uranium ore fields in Russia and abroad, the production of uranium and attendant natural resources," Rosatom said in a joint statement with Interros.
"We are talking about the introduction of new methods of exploration and extraction which would help to boost output and refining of uranium while preserving the necessary level of ecological safety," the statement said. A spokesman for Rosatom said it was too early to say how much investment was planned.
Uranium prices have soared this year to their highest since the 1970s as nuclear power returns to vogue amid high oil prices and efforts to cut carbon dioxide emissions.
Uranium is trading around $135 per pound compared with $7 per pound in 2000. Indicative prices are supplied by a small number of traders. Russia has major reserves of uranium though Moscow does not disclose reserve data. Analysts say Russia has somewhere between the third and seventh largest uranium reserves in the world.
President Vladimir Putin has approved a major revamp of the nuclear sector aimed at boosting uranium output in an attempt to almost double atomic power generation and create a giant nuclear firm with global clout.
Kremlin officials say the Soviet Union's extensive experience with nuclear projects gives Russia a competitive advantage on the world market. Nuclear officials say they are eager for joint ventures with private business.
That has attracted some of Russia's richest men, including metals tycoon Oleg Deripaska, commodities billionaire Viktor Vekselberg and now Potanin. Potanin is one of Russia's so-called oligarchs, a group of businessmen who made fortunes trading natural resources and political contacts after the fall of the Soviet Union.
A graduate of Russia's top diplomatic academy, Potanin gained control over Norilsk, one of the jewels of Soviet industry, in the privatisations of the 1990s. Vekselberg, who controls investment group Renova, signed a deal in January with state-uranium trader Tekhsnabexport (Tenex) to work on uranium exploration and mining in Africa and Asia.
Rosatom and United Company RUSAL, the world's largest aluminium producer which is controlled by Deripaska, said in April they planned to build a nuclear power plant and aluminium smelter in the Russian Far East.
Potanin controls Norilsk with Mikhail Prokhorov, who has said he plans to sell his Norilsk stake to Potanin. Norilsk Nickel is the world's largest nickel and palladium miner and Russia's biggest platinum and copper producer.