Kazakh President Kassym-Jomart Tokayev has arrived in New York to take part in the 80th session of the UN General Assembly, beginning his working visit with a meeting with Tim Gitzel, president of multinational corporation Cameco, the Akorda press service reported.
The two sides discussed prospects for cooperation in the uranium sector. Tokayev stressed that Cameco has long been a reliable partner of Kazatomprom, having invested more than $500 million in Kazakhstan since entering the market and contributing to technology transfer.
The president noted that Kazakhstan is entering a new stage in its energy development, which includes plans to build three nuclear power plants. He said the country is interested in adopting innovative methods in the nuclear industry.
Gitzel provided an update on the operations of the Inkai joint venture, which has been developing the Inkai deposit in Turkestan Region for more than 25 years.
During his stay in New York, Tokayev will deliver remarks at the General Debate of the UNGA’s landmark 80th session, hold talks with world leaders and heads of international organisations, and take part in a roundtable with representatives of multinational companies to present Kazakhstan’s investment opportunities.
Kazakhstan’s leading uranium joint venture Inkai, operated by Kazatomprom and Canada’s Cameco, is distributing dividends based on production output—not shareholder equity—according to Kazatomprom’s Q1 financials. Although Kazatomprom holds a 60% stake and Cameco 40%, dividends for 2025 will be split 55.63% to Kazatomprom and 44.37% to Cameco, diverging from the nominal ownership structure.
The adjusted payout arrangement stems from a 2024 supplemental agreement, but the formula and justification remain undisclosed. This has fueled speculation following production shortfalls in 2024 due to operational issues, including a 23-day shutdown in January and disruptions in sulfuric acid supply following the switch from Russian imports.
For 2025, output at Inkai is expected at 8.3 million pounds (approx. 3,200 tonnes) of uranium oxide (U₃O₈), with Cameco receiving 3.7 million pounds, down from prior projections of 4.2 million. In 2024, actual production fell short at 2,992 tonnes, compared to 3,230 tonnes in 2023.
In 2023, output was evenly split between Kazatomprom and Cameco. However, in 2024, Kazatomprom received 1,619 tonnes, 246 tonnes more than Cameco. No official explanation has been offered for the shift, though Kazatomprom states that the distribution mechanism is mutually agreed upon, with no penalties or exceptions.
Kazatomprom emphasized it is not authorized to speak on behalf of Cameco and directed further questions to the Canadian partner, which did not respond to inquiries from inbusiness.kz.
Historically, the production share has fluctuated. Between 2020 and 2021, Cameco’s share peaked at 59.4%, highlighting the flexible, performance-based distribution model set in the 2016 restructuring agreement. The split is expected to align with equity once Inkai reaches 4,000 tonnes/year output.
Kazatomprom vs Cameco: A Comparative Glance
Analysts at Teniz Capital recently questioned why Cameco’s market capitalization exceeds that of Kazatomprom. Reasons include:
Higher asset quality in Canada (notably McArthur River and Cigar Lake, considered “Tier 1” uranium mines).
Geopolitical risk and limited geographic diversification on Kazatomprom’s side.
Lower trading liquidity of Kazatomprom shares.
Despite lower production costs, Kazatomprom’s average uranium sales price has been consistently below Cameco’s. In Q1 2025:
Kazatomprom: $54.69/lb
Cameco: $62.55/lb
This pricing gap cannot be explained by logistics alone.
Cost-wise, Kazatomprom’s ISR mining method allows for cash costs of $16.5–18/lb and AISC of $29–30.5/lb, while Cameco’s Canadian underground operations report:
Total production cost: C$32.69/lb (~$23.86 USD)
Cash cost: C$22.39/lb (~$16.34 USD)
Cameco produced 10,400 tonnes in 2024 including its Inkai share, while Kazatomprom’s total production across all JVs reached 12,286 tonnes. The national total was 23,270 tonnes, suggesting Kazatomprom’s scale but also raising questions about labor efficiency—Kazatomprom employs ~22,000 people vs Cameco’s 6,200.
The global uranium market is experiencing what industry leaders describe as a “second uranium renaissance” or, as Cameco’s Sean Quinn prefers to call it, a “rejuvenation.” This revival is marked by robust demand, structural supply shortfalls, and growing support for nuclear energy from both political entities and financial institutions.
During a panel discussion at the MeetKazakhstan conference held on 2 March 2025 at the 93rd PDAC‘2025 Convention in Toronto, key players from Kazatomprom, Cameco, and Orano shared insights into Kazakhstan’s remarkable journey to becoming the world’s leading uranium producer and discussed the future landscape of the industry.
Kazatomprom: Strategic Vision and Market Discipline
Dastan Kosherbayev, Chief Director for Strategy and International Development at Kazatomprom, emphasized the company’s multi-vector policy that mirrors Kazakhstan’s broader approach to international relations. “We pursue no geopolitical ambition and we’re driven strictly by business or commercial interests,” Kosherbayev stated, highlighting the company’s long-standing partnerships with major industry players.
Kazatomprom became the world’s number one uranium producer in 2011 and the top seller in 2018, maintaining what Kosherbayev described as an “impeccable record” of delivering on all obligations since the company’s establishment in 1997.
The company’s competitive advantage lies in its geology and mining methods. Kazakhstan’s uranium deposits allow for cost-efficient extraction using in-situ recovery (ISR), which Kosherbayev noted is “the most environmentally friendly method that enables us to produce uranium without disrupting any other activities.”
Market Discipline and Global Presence
A key factor in the uranium market’s recovery has been Kazatomprom’s commitment to market discipline. Since 2017, the company has implemented production cuts that removed 48,000 tons of uranium from the market, helping eliminate surplus and revitalize the industry.
Kazatomprom maintains a diverse sales portfolio, with transportation routes through both the Northern route via St. Petersburg and the Trans-Caspian International Transport Route, providing logistical flexibility for deliveries to Western markets.
Updated Strategic Direction
Kosherbayev revealed that Kazatomprom has recently updated its long-term strategy, focusing on five major strategic goals:
Replenishing the resource base to address the upcoming structural uranium deficit expected at the beginning of the next decade
Exploring potential opportunities in conversion and enrichment, though “not at any cost”
Investigating possible expansion into rare earth metals, leveraging existing capabilities at their Ulba Metallurgical Plant
Enhancing trading functions through Kazatomprom’s Swiss trading facility
Continuing commitment to ESG principles
When asked about international expansion, Kosherbayev indicated that Kazatomprom is open to opportunities but prioritizes securing guaranteed demand. “A lot of behind-the-scenes work is carried out currently, and should something arise, we’re going to notify the general public in due course,” he explained.
Partnerships: Keys to Success in Kazakhstan
Cameco’s Long-Term Perspective
Sean Quinn, Senior Vice-President and Chief Legal Officer at Cameco, shared insights from his company’s nearly three-decade involvement in Kazakhstan. Cameco’s interest dates back to 1992, shortly after Kazakhstan declared independence, with JV Inkai being formed in 1998 and beginning production in 2008.
Quinn attributed their success to several factors: “We’ve taken a very long-term view… geographical diversity is important to Cameco… and we’ve had a patient, long-term focus.” He added that having significant operating assets in different jurisdictions, particularly in Northern Saskatchewan, has allowed the company to weather industry ups and downs.
Orano’s Evolution from Exploration to Innovation
Christian Polak, Senior Advisor for Strategy and Partnership at Orano Mining, traced his company’s journey in Kazakhstan back to the 1990s. “In 1996, we signed an agreement with Kazatomprom. We set up the company KATCO where Orano is 51% and Kazatomprom is 49%,” Polak explained.
He emphasized the importance of the initial decade spent building relationships and understanding the country before beginning production in 2006. KATCO now employs approximately 1,200 people.
The partnership has evolved beyond commercial relationships to include scientific collaboration. In 2022, Orano signed a memorandum of understanding with Kazatomprom during the Kazakh president’s visit to France, establishing around 20 scientific projects focused on geology, processing, mining, and environment.
Sustainable Development and Future Outlook
Polak highlighted Orano’s commitment to sustainable mining practices in Kazakhstan. “Even as we continue to produce, we have to think about the future of the country and the future of deposits,” he stated. Orano works closely with Kazatomprom to develop technologies that predict environmental conditions after production ends.
Building positive relationships with local communities is equally important: “We have to share very closely with the populations… to restitute what we found before we arrived.”
Looking ahead, all three companies see opportunities for growth as nuclear energy gains renewed support globally. Quinn mentioned Cameco’s investments in Westinghouse and other fuel cycle opportunities like Global Laser Enrichment (GLE) as providing “even greater exposure to some of that untapped demand.”
Kosherbayev noted that while uranium accounts for 90% of Kazatomprom’s revenue, the company is exploring opportunities to extract valuable by-products such as rare earth elements, beryllium, tantalum, and niobium from its mining operations.
A United Industry
Despite being competitors, the panel emphasized the collaborative nature of the uranium industry. As Kosherbayev concluded, “We may have our differences, but we are like a family… siblings may have their own differences internally, but externally we all come as a big family.”
This spirit of cooperation, combined with strategic vision and sustainable practices, positions Kazakhstan and its international partners to continue leading the global uranium market as nuclear energy plays an increasingly important role in the world’s energy transition.
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.
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 (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.
Uranium production at the Inkai joint venture (JV) in Kazakhstan, a project involving Cameco and Kazatomprom, has been suspended due to a bureaucratic holdup. Here are the key points:
Bureaucratic Holdup
The suspension is a result of a delayed submission of project paperwork to Kazakhstan’s energy ministry, which has not granted the necessary extension for the submission.
Ownership and Impact
Cameco holds a 40% stake in the Inkai JV, while Kazatomprom, the state-owned uranium producer, holds 60%. The Inkai JV is a significant contributor to Kazakhstan’s uranium production, accounting for approximately 14% of the country’s total uranium output and 16% of Cameco’s production.
Production and Market Implications
The suspension adds uncertainty to Kazakhstan’s near-term uranium production plans. However, Kazatomprom does not expect this to significantly impact its overall 2024 production forecast of 22,500 to 23,500 tonnes of uranium (tU).
Market Analysts’ Views
Analysts from BMO Capital Markets and Raymond James note that the paperwork approvals are expected to be resolved shortly, but the timeline for the approvals process and the resumption of operations is unclear. This could potentially lead to an increase in the spot uranium price if Cameco and Kazatomprom need to purchase additional supplies to meet their sales commitments.
Current Market Conditions
As of 31 December 2024, the uranium spot price was $73 per pound, down from its 17-year high of $100.25 a year ago. The timing of deliveries from the Inkai JV, which uses the TransCaspian International Transport Route, can also impact the timing and amount of dividends Cameco receives from the JV.
Kazatomprom’s Overall Production Plans
Despite the Inkai JV suspension, Kazatomprom has recently adjusted its 2025 production plans due to other challenges, including delays in construction and uncertainties in sulfuric acid supplies. The company now expects 2025 production to be between 25,000 and 26,500 tU, down from the initial plan of 30,500-31,500 tU.
Inkai, a joint venture by Kazatomprom (60%) and Canadian Cameco (40%), has announced its plan to build an affinage facility with a capacity of 4,000 tons of uranium per year.
«This project is going to boost the output at the Inkai uranium mine by 4,000 tons of triuranium octoxide. Under the project, the construction of a new affinage facility, a power substation with a diesel generator and the reconstruction of the existing pregnant solution processing plant are expected. The project starts this year and will be over in 2025,» the joint venture said in a statement on public hearings scheduled for April 2.
The company plans to build all these new facilities in parallel with uranium production and processing. Once they are ready, these facilities will be integrated into the current utility systems and the power grid. Inkai is going to use artesian water for its production processes and bring drinking water for workers in bottles. Even though the company hasn’t revealed any financial details, the project will be completed within the next 18 months.
The project is expected to be implemented within the existing mine that occupies 240.79 square kilometers and is located 10 kilometers away from the Taykonyr village of the Sozak District in the Turkestan region of Kazakhstan. The affinage facility will be in operation until 2045 when the Inkai mine expires. The affinage facility will be equipped with advanced equipment from Cameco. The facility is expected to produce 4,000 tons of uranium if it works 311 days per year or 7,450 hours.
To produce uranium at the Inkai mine, the joint venture relies on in-situ leaching that involves leaving the ore where it is in the ground and recovering the minerals from it by dissolving them and pumping the pregnant solution to the surface where the minerals can be recovered. Consequently, there is little surface disturbance and no tailings or waste rock generated. After extracting and refining the uranium, the company produces yellowcake, a type of uranium concentrate powder obtained from leach solutions.
As of January 1, 2023, there were 127,000 tons of uranium in the mine’s ore reserves (the total amount of mineral resources including reserves of 148,000 tons of uranium), according to the company.
Overall, Inkai consists of four sites. Site #1 is the processing plant; sites #2 and #3 are production facilities and site #4 is a camp for 745 workers.
According to Cameco, the Inkai mine produced 3,192 tons of uranium last year as the company faced some difficulties linked with reagent supply and well drilling.
In January 2024, Kazatomptom, which is one of the leaders in the global uranium market, said that it could lower its production plant for 2024 due to a lack of sulfuric acid, a key component for in-situ leaching, in open markets. At the same time, the company reassured its customers that it would deliver its current arrangements. As of yearend 2023, Kazatomprom reported $3.1 billion in revenue (+43%) compared to just a 20% increase in the uranium price.
Its production share in the Kazakh joint venture “Inkai” remains highly profitable.
Canadian uranium company Cameco plans to increase uranium production next year. This information is stated in its third-quarter report posted on the corporate website, as reported by inbusiness.kz.
“Thanks to market improvements, new long-term contracts we have signed, and negotiation progress on contracts, we are maintaining our plans to increase uranium production to 36 million pounds (approximately 13.8 thousand tons) with 22.4 million pounds being our share (about 8.6 thousand tons), starting in 2024,” the report states.
Recently, inbusiness.kz reported that more countries are ready to increase uranium production in the near future. It is also expected that in 2024, “Kazatomprom” will produce 10% below the planned parameters set in mining agreements with the government, compared to the previous target of 20% below. In September, the company’s board of directors approved an increase in production volumes in 2025 to 100% of the level stipulated in non-proliferation contracts, at around 30.5-31.5 thousand tons, an increase of 6 thousand tons from the previous year.
According to “Vedomosti,” global uranium production increased by 6% to 50.4 thousand tons in 2022, with nuclear power plant demand at 63.5 thousand tons, and with commercial and strategic stockpiles, the total demand reached 74.3 thousand tons.
By the way, speculative uranium funds increased their warehouse holdings. For example, Sprott Physical Uranium Trust (SPUT) increased its stocks by 5% to 62.2 million pounds (23.9 thousand tons) since the beginning of the year – it recently purchased 2.74 million pounds (about 1053 tons) on the spot market. Yellow Cake’s physical uranium volumes reached 20.16 million pounds (7.7 thousand tons), mainly purchased at a discount from “Kazatomprom.” In the first half of next year, Yellow Cake expects delivery of another 1.53 million pounds (587 tons) from the national uranium company at a price of $65.5 per pound, increasing its stocks to 21.68 million pounds (approximately 8.3 thousand tons). Currently, the spot price of uranium has approached $74 per pound, according to the UxC agency.
By the way, in September, Cameco lowered its planned overall production targets for this year from 33 million pounds (12.7 thousand tons) of uranium with its share being 20.3 million pounds (7.8 thousand tons) to 30.3 million pounds (11.6 thousand tons) with a share of 18.7 million pounds (7.2 thousand tons).
Meanwhile, the company’s production share in the third quarter at its key Canadian mines – Cigar Lake (54.5% stake) and McArthur River (70% stake)/Key Lake (83% stake) – increased to 3 million pounds (1154 tons) of uranium concentrate, which is 50% more than the 2 million pounds (769 tons) in the same period last year. In total, in the first nine months of this year, it produced 11.9 million pounds (4.6 thousand tons) in its share of these Canadian assets, an 80% increase compared to 6.6 million pounds (2.5 thousand tons) in January-September 2022.
According to Cameco’s reports, the production of the Kazakh joint venture “Inkai,” in which the company is involved on a 100% basis, was 2 million pounds (769 tons) of uranium for the quarter and 6.3 million pounds (2.4 thousand tons) for the first nine months of this year. Last year, these indicators for the same periods were at the level of 2.3 million pounds (884 tons) and 5.8 million pounds (2.2 thousand tons), respectively. With the changes made to the 2016 agreement on “Inkai,” the company is entitled to purchase 4.2 million pounds (1.6 thousand tons), or 50% of the planned production volume of the joint venture of 8.3 million pounds (3.2 thousand tons) for this year. In this joint venture, Cameco controls 40% of the shares, and “Kazatomprom” – 60%.
Last year, our publication reported that the Canadian nuclear company switched to trans-Caspian transit for its uranium, bypassing Russian territory. Recently, inbusiness.kz reported that this year, 228 containers of uranium concentrate were shipped from Aktau to the Baku port of Alyat, destined for the Georgian port of Poti via the Caspian, likely including volumes from Cameco in addition to Kazatomprom batches. Another hundred containers were expected to be shipped by the end of the year.
“The first shipment, containing approximately two-thirds of our share in Inkai’s production in 2023, is currently on its way. We expect the batch to arrive by the end of 2023. The second batch with the remaining volume of our share of production in 2023 is expected to be shipped by the end of the year and arrive in early 2024,” Cameco’s report clarifies.
The return on equity from “Inkai” in the third quarter was $35 million compared to $9 million for the same period last year. For the nine months, the company’s share income reached $100 million, exceeding $78 million for the first three quarters of 2022, according to the report. Judging by the financial indicators, the “Inkai” joint venture remains a highly profitable company. Thus, its profit for the third quarter was $49 million, and for the first nine months of this year, it reached $160 million.
