Australian mining company C29 Metals received notification from Kazakhstan’s Ministry of Industry on November 28, 2024, that its initial application to transfer ownership rights of Ulytau Resources Limited, holder of the Ulytau geological project, had been rejected at the first stage. This was revealed in the company’s quarterly activity report, published in late January, as reported by inbusiness.kz.
According to the ministry’s statement, the request was denied under Subparagraph 1, Paragraph 10, Article 45 of Kazakhstan’s Subsoil and Subsoil Use Code. This clause allows refusal if the transfer of subsoil use rights or related assets threatens national security, including through the concentration of such rights.
Following the rejection, C29 Metals requested a trading halt on the Australian Stock Exchange on November 29, with a suspension of quotations on December 3, later voluntarily extended on December 17. When trading resumed on December 23, the company’s stock price fell sharply.
C29 Metals had signed a binding share purchase agreement in April 2024 to acquire 100% ownership of the Ulytau uranium project in the Moiynkum district of Zhambyl region. The license area was estimated to contain around 10 million pounds (3,800 tonnes) of uranium oxide. The project’s previous owners included several Kazakh investors.
The company had been expanding its operations, obtaining two additional exploration licenses and receiving approvals for geophysical surveys, soil sampling, and drilling by late 2024. It had also signed a memorandum of understanding with Kazatomprom’s geological subsidiary, Volkovgeology, in anticipation of a commercial agreement.
Upon receiving the rejection notice, C29’s Managing Director Shannon Green immediately traveled to Almaty to work with consultants and engage with Kazakh government authorities to address concerns. The company has been encouraged to reapply and is preparing a revised submission. Despite suspending exploration activities, C29 Metals remains financially stable and ready to resume operations once regulatory approval is granted.
Kazakhstan’s uranium sector has been under increased scrutiny. In January, inbusiness.kz reported a legal precedent involving the revocation of a uranium exploration license from Nur Dala, which had Chinese investment. Additionally, Canadian firm Laramide Resources has been planning uranium exploration in the Chu-Sarysu basin.
Kazakh law requires that uranium mining contracts be awarded only to companies where Kazatomprom holds at least a 51% stake, though exploration is not subject to the same restriction. Legislative amendments proposed in September 2024 may further reshape Kazakhstan’s uranium exploration and mining regulations.
