MINEX Forum

Tag: Kazatomprom

  • Yellow Cake to Raise $125M for Uranium Purchase from Kazatomprom

    Yellow Cake to Raise $125M for Uranium Purchase from Kazatomprom

    London-listed uranium investment company Yellow Cake has announced plans to raise about $125 million (£92.5 million) through a non-pre-emptive placing of new ordinary shares. The funds will be used to acquire 1.33 million pounds of uranium from Kazatomprom, Kazakhstan’s state-owned uranium producer.

    The new shares will be placed at £5.64 each, equal to Yellow Cake’s closing mid-market price on September 22. The accelerated bookbuild is being managed by Canaccord Genuity as sole bookrunner, with Berenberg and Panmure Liberum as joint co-managers. Bacchus Capital, which founded Yellow Cake, is acting as financial adviser.

    Proceeds from the placing will finance the full exercise of the company’s 2025 purchase option under its long-term supply agreement with Kazatomprom at $75.08 per pound of uranium — representing a 7.1% discount to the current spot price of $80.80/lb. Delivery of the uranium is expected in 2026, with funds also allocated to cover working capital, corporate expenses, and placing costs.

    Yellow Cake said the implied pro forma net asset value (NAV) at the Kazatomprom purchase price stands at £1.21 billion, or £5.60 a share, rising to £1.3 billion, or £6.02 a share, based on the current spot price.

    CEO Andre Liebenberg emphasized the company’s confidence in uranium’s long-term market fundamentals: “Secured prior to our 2018 IPO, this agreement allows Yellow Cake to acquire up to $100 million of uranium annually through to 2027 at a fixed price, providing a key strategic advantage in today’s tightening market.”

    He added that global nuclear energy expansion, production constraints, and rising demand for secure uranium supply continue to strengthen the investment case.

    Yellow Cake currently holds 21.68 million pounds of uranium in storage in Canada and France. Once the new delivery is completed, the company’s holdings will rise further, reinforcing its position as a leading vehicle for direct exposure to physical uranium.

  • Kazatomprom Retains Baa1 Rating Following Moody’s Review

    Kazatomprom Retains Baa1 Rating Following Moody’s Review

    Moody’s Ratings has confirmed JSC National Atomic Company Kazatomprom’s credit rating at ‘Baa1’ with a Stable outlook following a periodic review published on 10 September 2025. The agency underscored the company’s pivotal role in Kazakhstan’s economy, given state oversight via the sovereign wealth fund Samruk-Kazyna.

    Kazatomprom’s rating reflects its robust financial metrics, low production costs, and dominance in uranium supply—accounting for roughly 20% of global output. Moody’s also noted its vast uranium reserves, operational diversification, and long-term client contracts as key strengths.

    The review reiterated Kazatomprom’s alignment with Kazakhstan’s strategic interests, reinforcing investor confidence. For further details, refer to Moody’s press release.

  • Kazatomprom Expands Exploration and Seeks International Ventures

    Kazatomprom Expands Exploration and Seeks International Ventures

    Kazatomprom, the world’s largest uranium producer, has announced plans to significantly increase its exploration activities both in Kazakhstan and internationally, as the company seeks to capitalise on growing global demand for uranium. The state-controlled giant revealed that it will triple its exploration efforts in Kazakhstan while also pursuing new ventures abroad, following recent agreements with Jordan and Mongolia.

    Currently, Kazatomprom produces all of its uranium domestically, but last week the company signed a landmark agreement with Jordan to develop the country’s uranium assets. Meirzhan Yussupov, the company’s CEO, addressed the World Nuclear Symposium in London, highlighting the company’s reputation in mining and its growing interest in international expansion. “We are acknowledged for our ability to do mining, and that’s why … we are also looking at opportunities abroad,” Yussupov said.

    Kazatomprom has also made strides beyond Kazakhstan’s borders in recent years. Last year, the company signed a cooperation agreement with Mongolia’s state nuclear company, Mon-Atom, and Yussupov hinted that further international opportunities are being explored, although he did not provide specific details.

    “We are trying to diversify our operations on a global scale geographically,” Yussupov explained, reinforcing the company’s strategy of global expansion.

    The push for greater international expansion comes amid rising demand for uranium. The World Nuclear Association’s report, released on Friday, warned that global uranium demand for nuclear reactors is expected to more than double by 2040, necessitating the development of new mining operations. To meet this demand, Kazatomprom has launched an ambitious exploration programme in Kazakhstan, increasing its exploration capacity threefold.

    The company, which supplies about 20% of the world’s primary uranium, has already seen growth in its output. In the first half of 2025, Kazatomprom boosted production by 13% and confirmed its production guidance for 2025. However, it also noted that it plans to scale back its output expansion in 2026 due to market conditions.

    Uranium prices have been on the rise, more than doubling over the past five years to $76 per pound. However, prices are still well below the February 2024 peak of $106 per pound, which was the highest level seen since November 2007.

    With increased exploration efforts and an eye on global diversification, Kazatomprom appears poised to strengthen its position as a key player in the uranium market, aligning with the long-term outlook of rising nuclear energy demand worldwide.

  • Astana and Amman to Establish Joint Venture for Uranium Development in Jordan

    Astana and Amman to Establish Joint Venture for Uranium Development in Jordan

    Tuesday, 27 August 2025

    Kazakhstan and Jordan have announced plans to create a joint venture for the development of uranium deposits in Jordan. The agreement was revealed by Nurlan Zhakupov, Chairman of the Board of the “Samruk-Kazyna” Sovereign Wealth Fund, during a press briefing on Wednesday.

    According to Zhakupov, the joint venture will be established between Kazatomprom, Kazakhstan’s national uranium company, and Jordan’s national uranium company. The agreement, signed during the visit of Jordan’s King Abdullah II, is a legally binding document that outlines the creation of the joint venture by the end of 2026.

    Scientific and Industrial Collaboration

    Under the agreement, both parties will conduct scientific research and pilot industrial work to assess the extractability and enrichability of uranium in Jordan. If the results are positive, the joint venture will be finalized by the end of 2026, with Kazatomprom holding a 70% stake and the Jordanian company owning the remaining 30%.

    Kazatomprom, the national operator for uranium exports and related products in Kazakhstan, operates under the management of the “Samruk-Kazyna” fund. The company is responsible for the export of uranium, rare metals, nuclear fuel for power plants, and specialized equipment.

    Previous Agreements and Future Prospects

    In February 2025, Kazatomprom and the Jordan Uranium Mining Company (JUMCO) signed a memorandum of cooperation to jointly study projects related to uranium exploration and mining in Jordan. The decision to collaborate was made during the fifth meeting of the Kazakh-Jordanian intergovernmental commission at the end of 2024.

    The establishment of this joint venture underscores the strategic cooperation between Kazakhstan and Jordan in the nuclear energy sector, with both countries aiming to leverage their resources for mutual economic benefit.

  • Kazatomprom Signs MoU with Slovakia’s SEAS to Strengthen Nuclear Energy Ties

    Kazatomprom Signs MoU with Slovakia’s SEAS to Strengthen Nuclear Energy Ties

    Kazakhstan’s national uranium producer Kazatomprom has entered into a Memorandum of Understanding (MoU) with Slovenské elektrárne a.s. (SEAS), Slovakia’s largest electricity provider, to foster long-term cooperation in the nuclear energy sector.

    The agreement marks the beginning of official collaboration between the two companies and outlines plans to supply natural uranium concentrate and potentially uranium dioxide (UO₂) for SEAS’s nuclear power plants. SEAS operates five VVER-440 reactors across two nuclear facilities—Bohunice and Mochovce—which collectively generate over 70% of Slovakia’s electricity.

    Meirzhan Yussupov, CEO of Kazatomprom, said the MoU is a significant step toward building strong relationships with European energy partners. “Nuclear energy is vital for Slovakia’s sustainable energy future. This memorandum paves the way for mutually beneficial collaboration,” he noted.

    Branislav Strycek, CEO and Chairman of SEAS, underscored the importance of diversifying nuclear fuel supply sources and welcomed the opportunity to work with the world’s leading uranium producer.

    The MoU also opens the door for further cooperation beyond fuel supply, potentially expanding Kazatomprom’s footprint in the European energy market. It aligns with the company’s broader strategy to engage with top European utilities and support the continent’s transition toward cleaner and more secure energy systems.

  • Kazakhstan Expands Uranium Exports to Bulgaria’s Nuclear Industry

    Kazakhstan Expands Uranium Exports to Bulgaria’s Nuclear Industry

    Kazakhstan is set to supply uranium to Bulgaria’s nuclear power stations, according to Nurlan Zhakupov, the head of the Samruk-Kazyna Fund, who spoke to journalists at the Akorda presidential residence.

    Bulgaria operates a nuclear power plant with two 1,2 MW units, presenting a significant opportunity for cooperation in uranium supplies, Zhakupov explained. However, details regarding the volume of supplies remain confidential.

    Zhakupov also revealed that Kazakhstan Atomic Energy Stations (KAES), currently a subsidiary of Samruk-Kazyna, will transition to the newly established Agency for Atomic Energy. KAES will focus on the construction of nuclear power plants within Kazakhstan.

    Earlier reports indicated that Kazatomprom would supply uranium concentrate to the Czech Republic. This deal aligns with Kazatomprom’s global strategy to diversify its sales channels.

    Last year, Kazatomprom produced over 23,000 tonnes of uranium. Since 2022, Kazakhstan has been supplying uranium fuel to China’s nuclear power plants and, in December, completed a uranium shipment to Canada via the Trans-Caspian International Transport Route.

    In February of this year, Kazakhstan agreed to collaborate in the uranium sector with Jordan and to supply uranium to Switzerland.

  • Kazakhstan’s Inkai Uranium JV Skews Dividend Split Despite Shareholding Structure, Raising Questions

    Kazakhstan’s Inkai Uranium JV Skews Dividend Split Despite Shareholding Structure, Raising Questions

    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.

  • Kazatomprom and Romania’s SN Nuclearelectrica Discuss Expanding Uranium Supply Cooperation

    Kazatomprom and Romania’s SN Nuclearelectrica Discuss Expanding Uranium Supply Cooperation

    Kazatomprom, Kazakhstan’s national atomic company, held discussions with Romania’s Ministry of Energy and state-owned company SN Nuclearelectrica S.A. regarding the expansion of natural uranium supplies and the development of the beryllium industry.

    A key outcome of the talks was the discussion of terms for a ten-year contract to supply Kazakhstani natural uranium for Romania’s current and planned nuclear power plants. Kazatomprom anticipates that the contract will strengthen long-term cooperation between the two countries and provide reliable raw material supplies for Romania’s nuclear energy sector.

    Additionally, the Ulba Metallurgical Plant (UMP), a subsidiary of Kazatomprom, may begin processing Romanian beryllium. Romanian representatives expressed interest in scientific and technical cooperation with UMP and further exploration of processing beryllium raw materials from Romanian deposits. UMP specializes in processing beryllium and tantalum and exports its products globally.

    In Kazatomprom’s 2024 report, uranium production (proportional to its ownership share) reached 12.3 thousand tons, marking a 10% increase from 11.1 thousand tons in 2023 and 11.4 thousand tons in 2022. This growth was mainly driven by joint ventures Budenovskoye, Akbastau, and Karatau.

    However, production of beryllium products fell to 735.1 tons in 2024, down from 842.8 tons in 2023 and 1,295.4 tons in 2022. Tantalum production also declined, with 135.1 tons produced in 2024 compared to 153.8 tons in 2023 and 165.3 tons in 2022.

    Kazatomprom’s 2024 financial report stated that revenue reached 1.81 trillion tenge (up from 1.43 trillion tenge in 2023). The largest consumers of Kazakh uranium and other products included:

    • China: 663.7 billion tenge (522.5 billion tenge in 2023)

    • Kazakhstan: 336.6 billion tenge (182.6 billion tenge)

    • Russia: 253.2 billion tenge (215 billion tenge)

    • Canada: 164.9 billion tenge (131.1 billion tenge)

    • USA: 140.9 billion tenge (152.5 billion tenge)

    • France: 110.9 billion tenge (82.6 billion tenge)

    • United Kingdom: 44.7 billion tenge (40.6 billion tenge)

    • UAE: 29.3 billion tenge (no imports in 2023)

    Other countries purchased Kazakh products worth 69.2 billion tenge, down from 107.6 billion tenge in 2023. Although Romania was not among the largest consumers, Kazatomprom confirmed it continues to supply its products to the country.

  • Czech Republic Secures Uranium Supply from Kazakhstan

    Czech Republic Secures Uranium Supply from Kazakhstan

    Kazatomprom, the world’s largest uranium producer, has signed a landmark agreement with ČEZ, a.s., a prominent energy company in the Czech Republic, to supply natural uranium concentrates over the next seven years. The official signing ceremony took place at ČEZ headquarters in Prague.

    Under the terms of the agreement, Kazakh uranium will fulfill approximately one-third of the fuel requirements for Westinghouse-manufactured assemblies used at the Temelín Nuclear Power Plant, one of the Czech Republic’s major nuclear facilities. This collaboration is expected to enhance the Czech Republic’s energy security and align with its decarbonization and sustainability goals.

    Strategic Importance of the Deal

    This deal is a strategic milestone for both countries:

    • For Kazatomprom, it signifies an expanded footprint in the European market and a strengthened position in the global uranium industry. The company has increasingly focused on diversifying its sales portfolio and forging international partnerships, as evidenced by similar agreements with Switzerland earlier this year.
    • For ČEZ, the agreement diversifies its uranium supply chain, reducing reliance on traditional sources and ensuring stability in nuclear fuel provision. Nuclear energy accounts for approximately 36% of the Czech Republic’s electricity production, with ČEZ operating six reactors at the Dukovany and Temelín sites.

    Broader Energy Security and Sustainability Goals

    The deal underscores broader trends in the nuclear energy sector, including supply chain diversification and the shift toward cleaner energy sources. With geopolitical uncertainties affecting traditional uranium markets, partnerships with producers like Kazakhstan, which holds about 12% of the world’s uranium reserves, are becoming increasingly critical.

    Both companies view this partnership as essential for advancing shared sustainability goals. “This agreement is another important milestone in our mission to be the global nuclear energy industry’s partner of choice,” said Kazatomprom Chief Commercial Officer Vladislav Baiguzhin. ČEZ’s Director of Nuclear Energy Division, Bohdan Zronek, emphasized the strategic importance of securing a reliable uranium supply for the Czech Republic’s decarbonization plans under its “Vision 2030” initiative.

    Expanding European Presence

    Kazatomprom, headquartered in Kazakhstan, has been strengthening its presence in the European market. The agreement with ČEZ follows similar contracts signed earlier with Swiss energy companies to supply nuclear power plants in Beznau and Leibstadt. These partnerships reflect the growing reliance on Kazakhstan’s extensive uranium resources for nuclear energy production in Europe.

  • Kazatomprom Reports Record Production and Revenue in 2024

    Kazatomprom Reports Record Production and Revenue in 2024

    Astana, March 20, 2025 – President Kassym-Jomart Tokayev recently held a meeting with Meirzhan Yusupov, Chairman of the Board of JSC “National Atomic Company Kazatomprom.” The discussion revolved around the company’s 2024 operational results, as well as its short- and mid-term goals.

    During the meeting, it was reported that uranium production exceeded 23,000 tons last year, with over 16,600 tons sold across the group. Kazatomprom’s consolidated revenue reached a record-breaking 1.8 trillion tenge, marking a 26% increase from 2023. Tax contributions to the national budget surged to 720 billion tenge, representing a 58% rise compared to the previous year.

    The President was briefed on global market developments, new contracts for the supply of natural uranium concentrate, and progress on several investment projects. Notably, the Ulba-TVS plant achieved its full production capacity of 200 tons of low-enriched uranium annually in 2024, marking a significant milestone for the industry.

    A key point of discussion was Kazatomprom’s new development strategy for 2025-2034. This initiative focuses on expanding and efficiently utilizing the nation’s mineral resource base. Licenses for uranium exploration in promising areas with an estimated resource potential of 170,000 tons were acquired last year.

    Mr. Yusupov highlighted recent international collaborations, including agreements with Tajikistan on rare and rare-earth metal processing, with France on workforce training for the nuclear sector, and with Mongolia and Jordan on joint uranium exploration projects.

    Additionally, the President was informed about Kazatomprom’s socially significant initiatives aimed at regional development and support. In 2024, over 3.7 billion tenge was allocated for these projects.

    At the conclusion of the meeting, President Tokayev set forth tasks to further enhance Kazatomprom’s operations and its participation in implementing socially impactful projects.