Kazatomprom’s CEO, Meirzhan Yusupov, announced during a financial results conference that the era of ‘cheap’ uranium is coming to an end, as global demand for nuclear energy accelerates. This shift is backed by a commitment from 38 countries, accounting for over 70% of the world’s GDP, to triple nuclear energy capacity by 2050. Yusupov noted that the demand surge is occurring within a disciplined commercial environment, with long-term uranium price indicators remaining stable and reaching an 18-year high. This creates a solid foundation for future long-term contracts, as market dynamics shift towards producers with confirmed large uranium reserves.
Kazatomprom’s consolidated revenue for the first half of the year rose by 9% year-on-year to nearly 718 billion tenge (approximately $1.57 billion), reflecting financial discipline and a favourable uranium market. However, the industry faces rising production costs, and Yusupov acknowledged that the days of ‘cheap’ uranium are over. The fundamental need for reliable, low-carbon energy remains strong, and global energy companies are aware of this shift, ensuring robust long-term demand for uranium.
In addition to its financial results, Kazatomprom announced agreements with China’s State Nuclear Uranium Resource Development Company Limited (SNURDC) for spot contracts for natural uranium concentrates, and with Uranium One Group JSC for the sale of uranium concentrates to the Siberian Chemical Combine in Russia. The details of these contracts are confidential but align with current market conditions.
Recent amendments to Kazakhstan’s Subsoil Code, effective from September, will impact uranium mining licenses, requiring a minimum participation share for Kazatomprom in any organization receiving such licenses. Another amendment shifts the legal framework for uranium exploration from a licensing regime to a contractual one, allowing for a maximum combined term of 11 years for exploration agreements.
Kazatomprom also reported a new processing plant with a capacity of 500 tonnes per year at the Zhalpak deposit, with plans to expand to 900 tonnes by 2027. However, the construction of a significant sulphuric acid plant is facing delays due to the discovery of potential paleontological finds at the site. Construction has been paused pending regulatory approval for excavation and analysis of the finds.
The sulphuric acid plant is crucial for Kazatomprom’s uranium extraction operations, and uncertainties regarding its supply have impacted production plans. The total investment in the sulphuric acid plant project is estimated at approximately 113 billion tenge ($2.6 million). The expected commissioning date for the plant has been pushed back to between Q3 2027 and Q1 2028, a delay of 6-12 months, although Kazatomprom anticipates that this will not significantly affect its uranium production operations.
