Aug. 28 (Bloomberg) -- Prime Minister Junichiro Koizumi will sign a uranium-development accord with Kazakhstan today during the first visit by a Japanese leader to Central Asia, amid growing interest in the region's mineral and oil resources.

Koizumi will meet President Nursultan Nazarbayev on the first day of a three-day trip that includes a stop in Uzbekistan. Japan is seeking more influence in the largely Islamic area to promote stability and compete with China and Russia for resources.

Companies including Marubeni Corp. have urged Koizumi to secure uranium mining rights in Kazakhstan, the world's third- biggest supplier. In June, Japan held a one-day meeting of foreign ministers of four central Asian countries on preventing terrorism and drug proliferation.

``Central Asia is extremely important geopolitically,'' said former Japanese Foreign Minister Yoriko Kawaguchi, a lawmaker in Koizumi's ruling Liberal Democratic Party. ``By supporting economic development and environmental technology, we can prevent the area from becoming a hotbed of Islamic extremism.''

Koizumi will go to Uzbekistan on Tuesday to meet President Islam Karimov and discuss regional stability. Uzbekistan is a neighbor of Afghanistan and Pakistan, both of which are battling members of the Taliban and al-Qaeda groups. Koizumi won't offer the country any official development aid during the trip, the foreign ministry said.

Uranium Production

Competition for Kazakhstan's uranium is increasing as it targets markets in China, South Korea and Japan. Agreements by Kazatomprom this year make Russia the country's main customer, according to the World Nuclear Organization.

More than 50 percent of the world's uranium is produced by four companies, including Kazakhstan's state-owned Kazatomprom.

Kazakhstan also has the world's eighth-largest oil reserves, with 3.3 percent of the world's total, according to BP Plc. Japan imports more than 99 percent of its crude oil supply.

Japan is the world's third-biggest generator of power from nuclear reactors after the U.S. and France, and it uses 8,000 tons of uranium a year. Sumitomo Corp., Japan's third-largest trading company, said in January that it will develop a uranium mine in Kazakhstan together with Kansai Electric.

``Development is ongoing,'' said Toru Furihata, a Sumitomo general manager for mineral resources development. ``We want to expand our uranium business in Kazakhstan.''

Sumitomo and Marubeni were among several Japanese trading houses that visited Kazakhstan last November on a tour arranged by Japan's Ministry of Economy, Trade and Industry.

Itochu Corp., the world's second-largest uranium trader and Japan's fourth-biggest trading company, said in October last year it concluded a contract with Kazatomprom to buy a total of 3,000 tons of uranium over 10 years beginning in 2007.

Cooperation

Koizumi, who steps down as prime minister in late September, will issue a joint statement with Nazarbayev on cooperation in the development of industries including uranium mining for nuclear energy development, a Japanese foreign ministry official said on condition of anonymity.

Japan's ODA to the five Central Asian countries totaled 280 billion yen as 2004 ($2.3 billion), according to the latest foreign ministry figures available. Kazakhstan has received 103.7 billion yen, and Uzbekistan 121.4 billion yen.

To contact the reporter on this story: Keiichi Yamamura in Tokyo at kyamamura@bloomberg.net.

Last Updated: August 27, 2006 20:47 EDT