Cameco Corp. and the National Atomic Co. of Kazakhstan announced Thursday that they will develop a uranium deposit in Kazakhstan

The companies will develop the Inkai deposit through their Inkai Joint Venture, which is 60 per cent owned by Cameco, the uranium-mining and energy company based in Saskatoon. The cost to build the mine will be $38 million US, and Cameco will lend the joint venture $40 million US, to be repaid through Inkai production. Subject to regulatory approval, it is expected to achieve commercial production in 2007 and ramp up to 2.6 million pounds annually by 2009. The mine will employ up to 200 workers during construction and 230 once full production is reached. About 97 per cent of the employees will be hired locally, Cameco said. Cameco estimated there were 91.5 million pounds of proven and probable reserves that would provide an estimated mine life of more than 30 years. Cameco bills itself as the world's largest uranium producer. Its shares (TSX:CCO) traded up 65 cents at $65.88 in Thursday trading on the Toronto stock market.