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.

Toshiba originally hoped that Japanese trading houses Marubeni and Mitsui would take large stakes, which would have reduced Toshiba''s borrowing requirements considerably.

While Toshiba has a 77-per cent stake in Westinghouse, the Shaw Group Inc of the US owns 20 per cent and Japanese heavy machinery maker IHI Corp owns the remaining 3 per cent. If Kazatomprom acquires a 10-per cent stake in Westinghouse, it would become Westinghouse''s third-largest shareholder.

Under the deal with Kazatomprom, Toshiba is expected to transfer its subsidiary Westinghouse''s uranium-processing technology to the Kazakh firm. With Westinghouse as a subsidiary, Toshiba has the technology to build both boiling water reactors and pressurised water reactors.

The deal would require the US government''s approval. Observers say it is likely that Toshiba has already sounded out Washington before proceeding with talks with the Kazakh company.

In March, Westinghouse and Shaw Group revealed that they had successfully negotiated a framework agreement with China''s State Nuclear Power Technology Company to provide four AP100 nuclear power plants in China, the construction of which is expected to begin in 2009, and the first plant becoming operational in 2013.

The tie-up would also enable Kazatomprom expand its sales channels worldwide and accelerate mining projects.