MINEX Forum

Tag: Kazakhstan

  • Canadian Cameco will increase uranium production next year

    Canadian Cameco will increase uranium production next year

    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.

  • Fire at ArcelorMittal’s coal mine in Kazakhstan kills 45 people

    Fire at ArcelorMittal’s coal mine in Kazakhstan kills 45 people

    Afire at the Kostenko coal mine in the Karaganda region of Kazakhstan has killed 45 people.

    The incident took place on 28 October at the mine, which is operated by ArcelorMittal Temirtau, the local unit of steelmaker ArcelorMittal.

    It is believed there was a methane blast. At the time of the incident, 206 of 252 people at the mine were evacuated safely.

    Kazakhstan’s emergency services said on social media: “As of 3pm (09:00 GMT), the bodies of 42 people were found. The search for four miners continues.”

    Although the authorities recovered bodies of other three miners, a rescue operation is under way for the last missing miner.

    ArcelorMittal also halted operation of coal unit mines for 24 hours to undertake gas protection checks.

  • Kazakhstan becomes an attractive ‘nuclear’ player

    Kazakhstan becomes an attractive ‘nuclear’ player

    Kazakhstan will hold a referendum in the near future to decide whether to build its first nuclear power plant, President Kassym-Jomart Tokayev said in his annual address to the Kazakh people in September.

    The government of Kazakhstan, which is the vastest and resource-richest Central Asian nation, has long discussed the idea, citing the need to diversify its power generation capacity, and has even identified a proposed site for the plant in the south-eastern Almaty region.

    “We have the technology, we have the resources and we have the will to develop nuclear power generation, provided that the people of Kazakhstan vote in favour of such a move in the national referendum”, Kazakhstan’s deputy Foreign Minister Roman Vassilenko told a press conference in Astana, attended by Euractiv. 

    He added that a precise date had not yet been set but would be announced “in due course.”

    According to Astana-based expert Issatay Minuarov, the referendum is likely to yield a positive answer, and open the way to the construction of the first nuclear power plant. 

    “In general, people are not against the idea,” he said, adding that some fears remain due to the country’s history with nuclear power. He referred to the nuclear test site of Semipalatinsk in northeast Kazakhstan, where the USSR conducted 456 nuclear tests from 1949 until 1989 with little regard for their effect on the local people or environment.

    Reservations on nuclear despite huge potential

    Today’s Kazakhstan is an undisputed leader in uranium mining, accounting for 42% of world production, with the Kazatomprom National Atomic Company accounting for 22%, the state fund Samruk Kazyna reported on 29 August.

    Kazatomprom is therefore the world’s largest uranium producer, with its subsidiaries, affiliates and joint ventures developing 26 deposits grouped into 14 uranium mining companies.

    But in spite of these riches, Kazakhstan abandoned nuclear energy after the Soviet era due to environmental and proliferation concerns and a desire to project a new image as a responsible and peace-loving country.

    Despite inheriting a large stockpile of nuclear weapons from the Soviet Union, Kazakhstan gave up this arsenal and joined the Nuclear Non-Proliferation Treaty (NPT) to reduce the risk of nuclear proliferation.

    “On 29 August, the world observed the UN International Day against Nuclear Tests, the same day Kazakhstan closed the Semipalatinsk nuclear test site in 1991 and voluntarily relinquished the world’s fourth-largest nuclear arsenal, inherited from the Soviet Union,” Vassilenko said during the press conference.

    “This action underscores our unwavering commitment to global stability and a nuclear-weapon-free world,” he added.

    Nuclear balancing act

    But the race towards strategically important minerals led the country to envision a change in its energy mix and include more nuclear in a bid to reach its carbon neutrality goals it set for 2060. 

    Today, Kazakhstan’s main source of electricity is coal, which accounts for around 70% of the country’s power generation and is among the cheapest in the world to produce. Adding nuclear power to the mix seems a logical step, but not without some delicate geopolitical considerations.

    “We’re now considering France, South Korea, Russia, and China as countries to work with us on this nuclear plant,” said expert Issatay Minuarov, adding that it will require a certain amount of political tact and balance to manage the expectations of these different actors.

    A source close to the issue confirmed to Euractiv that building the nuclear power plant is a geopolitical conundrum for Astana. 

    “On the one hand, the Kazakhs cannot risk being sanctioned by the EU, their main trading partner, by joining forces with Russia. On the other, aligning only with an EU country like France would send a very unpleasant signal to Moscow,” the source said. 

    The source recalled that the Kremlin used the perceived threat of a nuclear-capable Ukraine as one of the justifications for its invasion of the country in 2022.

    “We’re not crazy enough to develop nuclear weapons,” Minuarov said, adding that Astana’s strong opposition to nuclear weapons and diplomatic efforts in this direction speak for themselves.

    Renewed international interest

    Kazakhstan’s reserves of uranium and other strategic minerals are now being eagerly courted by other international players, as evidenced by French President Emmanuel Macron’s visit to Astana on 1-2 November.

    “I do not underestimate the geopolitical difficulties, the pressures and sometimes the jostling to which you may be subjected. France looks to you with great consideration, respect and friendship”, Macron declared in Astana.

    France is the fifth largest foreign investor in Kazakhstan, ahead of China, thanks in particular to the presence of the oil group TotalEnergies, which jointly operates the large Kachagan field in the Caspian Sea. Bilateral trade amounted to €5.3 billion in 2022, mainly in hydrocarbons, and Kazakhstan also supplies France with almost 40% of its uranium.

    Following Macron’s diplomatic trip, several contracts and declarations were signed, including a joint declaration of intent between France and Kazakhstan on cooperation in the field of strategic raw materials.

    “Do we really have a choice?” commented a source close to the matter. “With the fiasco of French policy in Africa, and Niger in particular, Central Asia is going to take on more and more importance in the minds of Europeans.”

    “But we are not the only ones looking in that direction”, the source said, as China and Turkey in particular are seeking to carve out a place for themselves in Central Asia. 

  • Kazakh Government to Finalize Nationalization Deal on ArcelorMittal This Month

    Kazakh Government to Finalize Nationalization Deal on ArcelorMittal This Month

    ASTANA – The Kazakh government has no plans to consider foreign investors following the transfer of ownership of ArcelorMittal Temirtau to Kazakhstan, said Kazakh Minister of Industry and Construction Kanat Sharlapaev at a press briefing on Oct. 31.

    “The government is not considering any foreign investors following the transfer of ownership rights to Kazakhstan. All current conditions at the enterprise, including those based on collective agreements with trade unions, wages, and the number of employees, will remain unchanged,” said Sharlapaev.

  • Kazakhstan proposes to deduct expenses for unsuccessful geological exploration for tax purposes

    Kazakhstan proposes to deduct expenses for unsuccessful geological exploration for tax purposes

    It was proposed by the First Deputy Executive Director of the Republican Association of Mining and Metallurgical Enterprises (AGMP) Maxim Kononov to deduct the costs of unsuccessful geological exploration in Kazakhstan from the income of the taxpayer company.

    “We propose to introduce a procedure where, in the event of termination of an exploration contract in which there is no commercial discovery, exploration costs would be deducted from the taxpayer’s total income in the tax period when the exploration contract was terminated,” Kononov said, speaking at the government hour in Senate on Friday.

    According to him, there are a number of problems in the field of geological exploration, including those related to taxation.

  • Tokaev instructed to terminate cooperation with “ArcelorMittal Temirtau”

    Tokaev instructed to terminate cooperation with “ArcelorMittal Temirtau”

    Kazakhstani President Kassym-Jomart Tokayev expressed his sincere condolences to the families and loved ones of the miners who lost their lives in the fire at the Kostenko Mine in the Karaganda region. The head of state instructed the Government to provide all necessary assistance to the families of the miners. A government commission has been established to investigate the circumstances of the incident.

    The government has been instructed to terminate investment cooperation with the company “ArcelorMittal Temirtau.”

    The emergency occurred during the night.

    It is worth noting that just two months ago, a tragedy occurred at the “Kazakhstanskaya” mine (also owned by “ArcelorMittal Temirtau”).

    It has recently become known that the management is entirely responsible for the tragedy that led to the deaths of miners following the fire at the “Kazakhstanskaya” mine.

    The staggering statistics of fatal accidents at AMT facilities have caused outrage and angry comments not only from internet users but also from officials, starting with the head of state. The rumors about a possible “divorce” with a foreign investor have gone beyond kitchen table discussions and have taken concrete shape in parliamentary inquiries. To understand what is happening, the correspondent of Ulysmedia.kz analyzed, remembered, and reviewed personal archives.

    On April 23, it became known that Irina Em, a lawyer at “ArcelorMittal Temirtau,” was killed. Her body, showing signs of violent death, was discovered by firefighters from the city of Shakhtinsk who responded to a call. The most significant question actively discussed on social media is whether the woman’s murder is related to her professional activities. The Ulysmedia.kz correspondent investigated why deaths at “AMT” are associated with production.

  • Tragedy at the “Kostenko” Mine: the names of the miners who will be buried on October 31 have become known

    Tragedy at the “Kostenko” Mine: the names of the miners who will be buried on October 31 have become known

    Mourning continues in the Karaganda region for the miners lost in the Kostenko Mine accident. Funerals have commenced, with 14 workers interred on October 30th both in Karaganda city and surrounding towns. Many of the deceased had previously served at other company facilities.

    Further farewells are scheduled over the next two days, with the bulk planned for this coming Tuesday. Through social networks, eight additional memorial services have been noted already set for October 31st honouring Marat Fazlov, Olzhas Kamiev, Askhat Sapargaliev, Vladimir Kataman, Damir Kalimullin, Ivan Menikov, Akynzhan Orakbayev and Yuri Polovinka.

    The local administration and ArcelorMittal Temirtau are aiding the families in funeral arrangements. It remains that an explosion inferred to have resulted from a methane blast transpired on October 28th, with 45 bodies recovered and one miner still searched for. The first names released bring some solace amidst this tragedy which the President strongly condemned. A criminal inquiry has rightly commenced as the ownership transfer process continues.

  • Tulegen Mukhanov: “The future of geological exploration is our national priority”

    Tulegen Mukhanov: “The future of geological exploration is our national priority”

    In the Address to the people of Kazakhstan “The Economic Course of a Fair Kazakhstan,” the Head of State identified the development of geological exploration as one of the key tasks. In the strategic document, the President noted that in 2018, in order to replenish the mineral resource base, new legislation was adopted on the management of the mining sector. However, it did not work fully. As a result, there have been no significant geological discoveries in our resource-rich country for a long time.

  • Death toll rises to 45 in ArcelorMittal Kazakh coal mine fire

    Death toll rises to 45 in ArcelorMittal Kazakh coal mine fire

    The death toll from a fire at a coal mine in Kazakhstan owned by ArcelorMittal rose to 45 on Sunday, with emergency teams engaged in an operation to find one remaining miner believed to have been underground, emergency service officials were quoted as saying.

    On Saturday, operator ArcelorMittal Temirtau, the local unit of Luxembourg-based steelmaker ArcelorMittal, said 206 of 252 people at the Kostenko mine had been evacuated after what appeared to be a methane blast.

  • Kazakhstan and the European Union are expanding opportunities for the development of the critical raw minerals sector

    Kazakhstan and the European Union are expanding opportunities for the development of the critical raw minerals sector

    From October 25 to 26, 2023, Vice Minister of Industry and Construction of the Republic of Kazakhstan Iran Sharkhan and Chairman of the National Geological Survey JSC Erlan Galiyev took part in the Global Gateway forum in Brussels (Belgium).

    The event, which focused on green energy, education and research, critical raw materials, transport corridors, healthcare manufacturing and digital infrastructure, was opened by European Commission President Ursula von der Leyen.

    During the visit, the Kazakh delegation took part in a panel session dedicated to the problem of rare earth metals and discussed issues of joint cooperation with the parties. Also, I. Sharkhan and E. Galiyev held a number of bilateral meetings with the heads of European organizations.