The Inkai joint venture, a partnership between Kazatomprom (60%) and Canada’s Cameco (40%), produced approximately 3,000 tons of uranium in 2024, according to its CEO, Birzhan Zhylkaidarov. This figure falls short of the 3,200-ton annual target stipulated in the company’s subsoil use contract. Final production data for 2024 will be released later, but preliminary estimates indicate a decline compared to the 3,201 tons produced in 2023.
The contract allows for a 20% deviation from the annual target of 4,000 tons, meaning production between 3,200 and 4,800 tons is acceptable. However, if the final 2024 output remains below 3,200 tons, it would constitute a breach of contractual obligations. While regulators typically issue a warning for first-time violations, repeated failures could result in fines or contract termination.
Zhylkaidarov attributed the shortfall to supply chain disruptions, particularly irregular deliveries of sulfuric acid, a critical reagent used in the in-situ leaching (ISL) method of uranium extraction. The ISL process, which involves injecting a solution of sulfuric acid and water into underground uranium deposits, is highly sensitive to reagent availability. Delays in acid deliveries from mid-April to mid-May 2024 disrupted production schedules, leading to a 20% drop in output compared to contractual targets.
The Inkai venture sources sulfuric acid from KAP Logistics, a subsidiary of Kazatomprom, which transports the reagent from domestic producers like KAZ Minerals, Kazzinc, and Kazphosphate. However, operational halts at supplier plants, including a week-long stoppage at Kazphosphate last fall, exacerbated the challenges.
Looking ahead, Inkai plans to produce 3,200 tons of uranium in 2025. The company is also exploring long-term solutions, including the construction of a sulfuric acid plant in Taykonur, expected to launch in 2027. This facility, with an annual capacity of 800,000 tons, could fully meet Inkai’s sulfuric acid needs.
Since commencing operations in 2002, Inkai has extracted 39,476.2 tons of uranium from the Inkai-1deposit, one of Kazakhstan’s richest uranium reserves. The venture’s final product, yellowcake, is processed into uranium oxide (U3O8), which is sold to shareholders Kazatomprom and Cameco for distribution to global markets, including France, a leading consumer of nuclear energy in Europe.
