MINEX Forum

Month: January 2025

  • Kazatomprom Plans Up to 14% Increase in Uranium Production for 2025

    Kazatomprom Plans Up to 14% Increase in Uranium Production for 2025

    Kazatomprom, Kazakhstan’s national atomic company, announced plans to produce between 25,000 and 26,500 tons of uranium in 2025, according to a statement issued on Monday. This represents an increase of 7 to 14 percent over its 2024 output of 23,270 tons.

    The company anticipates that uranium production from most mining operations will see varying percentage declines compared to targets set under existing subsoil use contracts, with these reductions expected to stay within an acceptable deviation of up to 20 percent.

    Additionally, Kazatomprom reported a 10 percent rise in uranium production for 2024, reaching 23,270 tons, compared to the previous year.

    Further details on the company’s financial performance for 2024 will be provided on March 19.

    Kazatomprom serves as the national operator for the export of uranium, rare metals, nuclear fuel, and related technologies.

  • President Focuses on Revitalising Investment Climate Amidst Declining FDI

    President Focuses on Revitalising Investment Climate Amidst Declining FDI

    [vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]President Kassym-Jomart Tokayev has sounded the alarm over slowing foreign direct investment (FDI) flows into Kazakhstan, urging the government to redouble its efforts to attract high-quality investments to keep pace with global trends.

    Speaking on 28 January 2025 at the general meeting of his Government in Astana against the backdrop of a challenging economic environment and heightened international competition, President Tokayev emphasised the critical need for qualified investment in the country: “We must intensify the government’s work in the field of investment, otherwise, we risk falling behind in the face of these rapidly changing conditions.”

    Data reveals a concerning decline in FDI. During the first nine months of 2024, Foreign Direct Investment reached $12.7 billion, a 36% decrease compared to the same period in 2023. This decline has been observed in a number of regions, including Aktobe, Almaty, Atyrau, East Kazakhstan, Jambyl, Pavlodar, North Kazakhstan regions, and the city of Almaty.

    Locking in Leaner Investments:

    Recognising the pressures on government budgets, President Tokayev proposed a proactive approach: “In light of the limited availability of budget funds, we must consider introducing an array of additional financial incentives for investors who are willing to commit to high-quality projects.” This policy aligns with President Tokayev’s broader vision of economic liberalisation. He called for the creation of a comprehensive ecosystem that fosters, supports, and safeguards investors at all levels – both domestically and internationally.

    Mutual Benefits and Responsibilities:

    Government support for business ventures should come with clear expectations. President Tokayev outlined: “Investors who receive government assistance must accept reasonable countermeasures, such as job retention, investment in modernization, and adherence to environmental regulations.”

    President Tokayev’s impactful message signifies Kazakhstan’s commitment to creating a more attractive investment climate while simultaneously promoting responsible and sustainable development. The focus on attracting high-quality FDI is crucial for the country’s economic future.

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  • Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    At the annual meeting with his Government on 28 January 2025 Kazakhstan’s President Kasym-Jomart Tokayev has outlined the country’s commitment to strengthening its mining sector, with a particular focus on rare and rare-earth metals, including lithium. The global demand for these resources is on the rise, and Tokayev emphasised that Kazakhstan must seize this opportunity by attracting both foreign investment and advanced technologies.

    “Our country has great potential for the extraction and processing of rare and rare-earth metals,” said Tokayev. “The growing global demand for lithium presents a significant opportunity, and we must position ourselves to capitalise on this trend.”

    Kazakhstan has already seen the arrival of major foreign companies engaged in geological exploration. Additionally, a unified platform has been launched to facilitate the transparent and efficient distribution of subsoil use rights, which will further streamline and modernise the mining industry. President Tokayev stressed that the legal framework for this platform should be fully established by the end of the current parliamentary session.

    “Reforms in the area of subsoil use must continue, no matter the circumstances,” he continued. “This is a fundamental position that the government must steadfastly adhere to.”

    With its vast mineral resources, Kazakhstan is positioning itself as a key player in the global mining market, and these efforts to modernize and open up the industry aim to attract both international and domestic investors. The government’s commitment to these reforms underscores its focus on creating a more efficient, transparent, and competitive mining sector in the years to come.

  • Kazakhstan Turns to Nuclear Energy to Power Future Growth

    Kazakhstan Turns to Nuclear Energy to Power Future Growth

    In a meeting with his Government on 28 January 2025, Kazakhstan’s President Kasym-Jomart Tokayev emphasised the critical need for the country to achieve full self-sufficiency in electricity and establish reserves of 15-20%. To meet this goal, the government plans to introduce at least 3 gigawatts of new power capacity over the next two years, a target nearly 2.5 times higher than previous years.

    President Tokayev reaffirmed the country’s commitment to achieving carbon neutrality, stressing the importance of a rational approach that leverages Kazakhstan’s natural resources and inherent advantages. Innovative coal-fired power stations are set to replace outdated thermal power plants (TPPs), following the successful examples of next-generation coal-fired power stations with minimal emissions in China and South Korea. The President noted the missed opportunity of the unbuilt coal-fired power plant in Balkhash, which would have been a valuable energy source today.

    Amid growing energy shortages, President Tokayev called for the acceleration of the construction of Kazakhstan’s first nuclear power plant and the establishment of a nuclear cluster. He tasked the government and “Samruk-Kazyna” with developing long-term plans for the nuclear industry, including identifying suitable locations for future nuclear power plants and adopting modern, safe technologies.

    President Tokayev expects proposals from the government and Parliament regarding the site for the second nuclear power plant, reiterating the necessity of nuclear energy for Kazakhstan’s continued development. He emphasized that energy is the driving force of the entire economy, and only by ensuring energy supply to all regions can the country achieve prosperity and improve the quality of life for its citizens.

  • University of Leuven Debunks Controversy Surrounding New Lithium Mining Documentary

    University of Leuven Debunks Controversy Surrounding New Lithium Mining Documentary

    Leuven, Belgium – The University of Leuven (KU Leuven) has issued a statement clarifying details surrounding their upcoming documentary, “Not In My Country: Serbia’s Lithium Dilemma,” amid public scrutiny and online criticism.

    The film, facing accusations of bias and undisclosed agendas, is actually a production of SIM², KU Leuven’s Institute for Sustainable Metals and Minerals. SIM², a multi-disciplinary institute of over 400 researchers, is dedicated to advancing sustainable practices in critical metal and mineral production, including lithium.

    Directed by Peter Tom Jones, SIM²’s Director reiterated in the statement that the documentary, scheduled to premiere at the European Parliament on February 5th, is fully funded by KU Leuven and serves a purely educational purpose.

    “SIM² has no financial interest in publishing these documentaries,” Jones clarified. “It will not receive royalties or commercial income. The production of these films is solely part of SIM²’s commitment to ‘wider-society learning’.”

    “Not In My Country” is the first in a two-part series examining lithium’s role in transitioning to a climate-neutral society. Its companion, “Europe’s Lithium Paradox,” set for release in May 2025, will delve deeper into the complexities of lithium mining, recycling, and demand management within Europe.

    SIM² emphasizes their expertise in lithium exploration and processing techniques through extensive research projects. Funding for “Europe’s Lithium Paradox” comes from Horizon Europe project grants, complemented by internal KU Leuven funds and crowdfunding.

    The statement assures the public that both documentaries reflect SIM²’s commitment to unbiased research and transparent communication on crucial topics like lithium’s future in a sustainable world.

  • Zangezur Copper and Molybdenum Plant Remains Armenia’s Top Taxpayer

    Zangezur Copper and Molybdenum Plant Remains Armenia’s Top Taxpayer

    Yerevan, Armenia – Zangezur Copper and Molybdenum Plant (ZCMC) has solidified its position as Armenia’s largest taxpayer for the third year in a row, according to the latest data released by the State Revenue Committee. The company’s contributions to the state treasury reached an impressive 102 billion AMD in 2024, a significant 44% increase compared to the previous year.

    ZCMC’s tax payments included 2.2 billion AMD in customs duties, 30.2 billion AMD in direct taxes (including profit tax and income tax), and 2.7 billion AMD in indirect taxes (including VAT and excise tax).

    Mobile Center Art climbed to second place in the ranking, with a total tax contribution of 66.7 billion AMD, a 21% year-on-year increase. Grand Tobacco secured the third position with 63.3 billion AMD in tax payments, up 31% from the previous year.

    Gazprom Armenia and Pretty Way LLC (Vesta) rounded out the top five, contributing 46.5 billion AMD and 36.3 billion AMD respectively.

    The top five taxpayers collectively contributed 315.4 billion AMD ($795.3 million) to the state budget in 2024, demonstrating a 24.1% increase compared to 2023.

    Other notable companies in the top ten include CPS Energy Group, Ameriabank, Wildberries, International Masis Tabak, and JTI Armenia.

    Overall, the 1,000 largest taxpayers in Armenia paid a total of 1.772 trillion AMD ($4.4 billion) to the state treasury in 2024, representing a 3.6% rise from the previous year.

    This continued strong performance from major taxpayers, particularly ZCMC, highlights their crucial role in supporting Armenia’s economy and public finances.

  • Kazatomprom Increased Uranium Production in 2024

    Kazatomprom Increased Uranium Production in 2024

    January 27, 2025, 14:51 / Astana, Kazakhstan 

    Kazatomprom, the world’s largest producer of uranium, announced a 10% increase in its production of uranium oxide (U3O8) in 2024, reaching 23,270 tonnes.

    The company attributed this growth to an expansion of its mining plans in accordance with its agreements for exploration and resource use rights. However, despite the rise in production, Kazatomprom’s sales declined by 8% to 16,670 tonnes in 2024, as the company prioritized supplying its subsidiary Uranium Mining & Fuel Company (“Ulbas-TVS”) with uranium for the production of nuclear fuel assemblies (NFAs).

    The average selling price of uranium increased significantly by 27% to $69.72 per pound in 2024 compared to $55.09 per pound in 2023, fueled by higher spot uranium prices. Spot prices averaged $85.24 per pound in 2024, a 36% increase from $62.51 per pound in 2023.

    Ulbas-TVS Expansion:

    Ulbas-TVS, a joint venture between Kazatomprom and Chinese company CGNPC-URC, reached its projected production capacity of 200 tonnes of NFAs per year in early January. The company aims to potentially increase production to 400 tonnes per year with a two-shift operation. All NFAs produced by Ulbas-TVS are destined for use in nuclear power plants in China.

    Mining Stoppage Resumes:

    Kazatomprom also announced the resumption of uranium mining at the Inkai joint venture (60% Kazatomprom, 40% Cameco) after a temporary suspension in January. The suspension was due to a delay in receiving the necessary documentation from relevant authorities to continue mining operations at the Inkai, Block 1.

    2025 Production Expectations:

    For 2025, Kazatomprom expects to produce 25,000 to 26,500 tonnes of uranium, with sales estimated between 17,500 and 18,500 tonnes. The company acknowledges that the production levels of some mining sites may be influenced by revisions to their resource use agreements.

    The company intends to release its financial outlook for 2025 as part of its 2024 financial performance analysis. Kazatomprom produces about 20% of global uranium demand.

    The market has yet to react to Kazatomprom’s production data release. As of the article’s publication, shares of the uranium producer on the Kazakhstan Stock Exchange (KASE) were trading at 19,842.88 tenge, down 0.54%. As of October 1, 62.99% of Kazatomprom’s shares were owned by Samruk-Kazyna, 24.32% by CITINAK, NA.-NY (F/B/O DR HOLDERS, nominee holder), and 12.01% by the Ministry of Finance of the Republic of Kazakhstan.

  • Cameco Resumes Uranium Production at Inkai JV in Kazakhstan

    Cameco Resumes Uranium Production at Inkai JV in Kazakhstan

    Cameco (TSX: CCO; NYSE: CCJ) has resumed uranium production at its Inkai joint venture project in Kazakhstan, following a temporary suspension due to regulatory delays. Kazatomprom, Kazakhstan’s state-owned uranium producer, made the announcement on Monday, confirming that the Inkai LLP operation has successfully resolved the issue that caused the disruption.

    On January 1, production activities at Block No. 1 of the Inkai deposit were halted after the required approvals from state authorities were not received on time. This delay was attributed to the late submission of necessary documentation.

    The Inkai joint venture is a significant player in Kazakhstan’s uranium industry, with Cameco holding a 40% stake and Kazatomprom controlling the remaining 60%. It is the largest uranium operation in the country.

    Kazatomprom has stated that operations at Inkai LLP have now resumed, and the company is currently assessing the impact of the suspension on the joint venture’s 2025 production goals. However, Kazatomprom reassured stakeholders that the company remains committed to meeting its contractual obligations and has sufficient inventory to manage deliveries throughout 2025 without significant disruption.

    The company’s production forecast of 65–68.9 million tonnes of uranium oxide (U3O8) remains intact, according to earlier projections from BMO Research. Inkai’s contribution to Kazakhstan’s total production is expected to reach 9.3 million pounds of uranium this year, accounting for 14% of the country’s total output and 16% of Cameco’s global production.

    Following the news, Cameco’s stock price dropped by 12% to $49.25 per share on Monday morning, bringing its market capitalization to $21.4 billion. Meanwhile, Kazatomprom’s shares declined by 1.7%, closing at $37.20, with a market cap of $10.2 billion.

    Both companies continue to navigate the challenges posed by regulatory delays but remain focused on maintaining steady uranium production moving forward.

  • Kazakhmys Signs New Collective Agreement with Enhanced Social Protection for Workers

    Kazakhmys Signs New Collective Agreement with Enhanced Social Protection for Workers

    On January 22, 2025, LLP “Kazakhmys Corporation” officially signed a new collective agreement for 2025-2029. This new document not only incorporates proposals from company management and unions, but also directly considers the wishes of the employees. The 2025-2029 collective agreement is aimed at strengthening employee social protection and developing corporate social policy.

    One of the key achievements is the substantial expansion of support measures for workers and their families. Many of the changes were initiated by the company itself, highlighting its commitment to investing in employee welfare. Among the innovations of the collective agreement are a fivefold increase in childbirth benefits compared to the previous agreement. Similar benefits are provided for employees entering into marriage. New support measures have also been introduced for workers, including those raising children with special needs.

    Nurakhmet Nuriev, Chairman of the Board of LLP “Kazakhmys Corporation”, emphasized that this is not just a corporate document, but the result of extensive diligent work and complex discussions based on a deep understanding of the situation and analysis of internal operations. The signing of the new collective agreement will qualitatively elevate employee well-being to a new level, providing additional social protection for employees and their families.

    “We are all one big team, and each of us is interested in ensuring that people work in safe conditions. Safety is our number one priority. The second priority is employee social protection. The third is the productivity of enterprises, which supports the economy and upholds all the good initiatives we are laying out today,” stressed Nurakhmet Nuriev.

    The company also emphasized the importance of cooperation with trade unions, which played a significant role in the development of the new agreement. Their contribution to supporting social stability and increasing employee awareness of labor rights will continue to be strengthened.

    According to the union leaders, this document is one of the best in recent years, as it emphasizes the employer’s increased social responsibility and takes into account the proposals of unions and direct wishes from the employees themselves.

    The new collective agreement reflects Kazakhmys’ commitment to being a socially responsible employer and lays the foundation for the company’s sustainable development in the future.

    In addition to the innovations of the collective agreement itself, Kazakhmys is allocating significant financial resources to implement other social programs. For example, from 2025, employees working under normal conditions will be included in the existing voluntary health insurance. Also, this year, more than 200 service apartments will be donated to employees. Furthermore, specific categories of employees will receive targeted social assistance. Funds are also being allocated for the rehabilitation of children with disabilities.

  • Ukrainian Mining Company BGV Group Showcases Potential in Davos

    Ukrainian Mining Company BGV Group Showcases Potential in Davos

    BGV Group Management made a significant impact at the Ukrainian House in Davos during the World Economic Forum’s unofficial program. The team participated in a panel discussion titled “Ukraine: A country with mineral reserves worth $12 trillion.” The panel featured key representatives from the Ukrainian Ministry of Economy, global consulting firms, and American businesses, highlighting the strategic importance of Ukraine’s mineral wealth.

    BGV Group Management, a prominent player in Ukraine’s critical materials mining sector for nearly a decade, shared their ambitious plans to enter the international critical raw materials (CRM) market. Sergii Voitsekhovskyi, a member of BGV Group Management’s board of directors, emphasized their focus on graphite and beryllium.

    The company provided updates on their flagship graphite mining project, BGV Graphite, based on the Balakhivske deposit. By early 2025, they completed the preliminary feasibility study (PFS) and pilot technological tests for the final product. Rozvytok Pobuzhzhia, part of the BGV Group, has been working with Metso (Finland) on basic engineering for an enrichment plant. The design for a mining and enrichment complex is underway, with construction set to begin in the first quarter of 2026. The graphite concentrate from the Balakhiv deposit boasts a high carbon content of 97%, compared to the standard 95%. In 2024, tests for further graphite purification to a battery-grade quality of 99.99% and production of spherical graphite (SPG) were completed, in collaboration with German partner ANZAPLAN. Testing confirmed the high quality of the anode material for lithium-ion batteries.

    In 2025, BGV Group Management will start designing the SPG production plant. Voitsekhovskyi also provided updates on the beryllium mining project, BGV Beryllium. The company has conducted verification drilling and research, initiating a preliminary feasibility study in 2024. They highlighted the potential for mining valuable associated minerals like zinc, rare earth elements, and rare metal elements.

    “Ukraine is a country of new opportunities. We have 22 out of 50 strategic materials identified by the US as critically important, as well as 25 out of 34 recognized as critical in the EU. Our country is a country of highly qualified professionals with significant practical experience, scientifically based approaches, advantageous logistics, support for CRM projects at the government and community levels, as well as sustainable, responsible, and motivated businesses that, despite the war, remain in Ukraine, investing in mining and other projects. The future of the global economy and the advancement of international security are already unfolding, and Ukraine plays a crucial role in this process. Specifically, Ukraine possesses all the prerequisites to greatly enhance the international mining sector and become a reliable partner in the field of critical raw materials (CRM),” Voitsehovskyi stated.

    BGV Group Management presented the Ukrainian House in Davos with a symbolic gift—a sample of graphite ore sourced during geological research at the Balakhivske deposit in the Kirovohrad region. This gift symbolizes the potential and ongoing efforts in CRM projects, showcasing the company’s commitment to development despite the ongoing conflict.