MINEX Forum

Tag: Kazatomprom

  • Cameco Suspends Uranium Production at Kazakhstan’s Inkai JV Due to Bureaucratic Holdup

    Cameco Suspends Uranium Production at Kazakhstan’s Inkai JV Due to Bureaucratic Holdup

    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.

  • Kazatomprom Expands Uranium Exploration with New License

    Kazatomprom Expands Uranium Exploration with New License

    Kazakhstan’s national atomic company, Kazatomprom, has added a new license for geological exploration to its portfolio, focusing on the Budyonovskoye area. According to an announcement on the company’s official website, Kazatomprom is set to explore uranium deposits in the “Severnoye” block.

    The newly targeted site is located in the Shu-Sarysu Uranium Province in the Suzak district of the Turkestan region. Kazatomprom has secured a six-year subsoil use contract, with an option to extend it for an additional five years. Preliminary estimates place the predictive uranium resources at over 100,000 tons, classified as R1 and R2. During the contract period, the company plans to reassess these resources and elevate them to higher confidence categories, C1 and C2.

    According to Meirzhan Yusupov, Chairman of Kazatomprom, the Severnoye block has substantial potential, thanks to its large metal reserves, favorable geological conditions, and proximity to the company’s other operational uranium projects.

    Earlier this fall, Kazatomprom received a license to explore Block No. 5 on the southern flank of the Budyonovskoye area. However, its estimated reserves are comparatively smaller at 18,000 tons of uranium.

  • C29 Metals Signs MOU with Volkov Geology to Advance Uranium Exploration in Kazakhstan

    C29 Metals Signs MOU with Volkov Geology to Advance Uranium Exploration in Kazakhstan

    West Perth, Australia – October 28, 2024 – C29 Metals Limited (ASX: C29) has announced the signing of a Memorandum of Understanding (MOU) with Volkov Geology, a wholly-owned subsidiary of Kazatomprom, Kazakhstan’s national uranium producer. This strategic partnership marks a significant milestone for C29 Metals as it aims to become a globally significant uranium development company.

    Key Highlights:

    • Strategic Partnership: Volkov Geology, with its extensive 75-year history in uranium exploration and mining, will provide geological services for C29 Metals’ upcoming drill program, set to commence in November 2024.
    • Expertise and Capabilities: Volkov Geology, the largest driller in Kazakhstan by annual drill meters, will offer its technical expertise and certified laboratory services to ensure compliance with all regulatory requirements during the drilling program.
    • Future Expansion: The scope of Volkov Geology’s work is expected to expand in 2025 to include studies, geological modeling, and resource estimation.

    Project Location and Community Support: The Ulytau Uranium Project, located in the Almaty Region of Southern Kazakhstan, has a rich history of uranium exploration dating back to 1953. The local community of Aksuyek, with a population of approximately 700 people, has shown strong support for the project. C29 Metals has signed a social support agreement with the district government to assist with community development projects.

    Comments from C29 Metals: Shannon Green, Managing Director of C29 Metals, expressed enthusiasm about the partnership, stating, “This is a significant milestone for the company. Having Volkov Geology join us as our geological partner is an incredible step forward as we rapidly advance towards our goal of becoming a globally significant uranium development company.”

    Next Steps: C29 Metals anticipates finalizing a commercial agreement with Volkov Geology in the coming weeks. The initial drill program will be conducted by an independent drilling contractor, with Volkov Geology providing oversight and technical services.

  • Kazatomprom Signs Major Uranium Sale Agreement with China

    Kazatomprom Signs Major Uranium Sale Agreement with China

    Kazakhstan-based Kazatomprom, the world’s largest uranium miner, announced on Tuesday that it has finalized a significant agreement with CNNC Overseas and China National Uranium Corporation for the sale of natural uranium concentrates. The cumulative value of this transaction, combined with previous deals with these Chinese entities, represents over 50% of Kazatomprom’s total asset book value.

    While the company did not disclose the volume of the uranium involved, it stated that the deal will require approval from shareholders at a meeting scheduled for November 15.

  • National Atomic Company Granted License for Mineral Exploration at Budenovskoye Deposit

    National Atomic Company Granted License for Mineral Exploration at Budenovskoye Deposit

    The National Atomic Company has been granted a license to explore mineral deposits at Site No. 5 of the Budenovskoye field in the Turkestan region, according to the press center of Kazatomprom. This site is located to the northeast of the southern flank of the field and is considered a promising area for further exploration.

    The company will conduct geological exploration in this part of the Mynkuduk ore district for the next six years. Kazatomprom’s Chairman, Meirzhan Yusupov, emphasized that this new site plays a key role in the company’s strategy to increase uranium reserves.

    Experts anticipate long-term exploitation of the area due to favorable geological conditions and the well-developed transportation and energy infrastructure. Site No. 5 effectively extends the Inkai deposit southward. Preliminary estimates suggest the area holds over 18,000 tons of uranium. Kazatomprom expects a significant increase in resources following the exploration results.

    The company highlighted the high productivity of the ore in this region. Last month, Kazatomprom announced joint projects with Tajikistan’s TajRedMet in the uranium and rare-earth sectors.

  • North American Uranium Stocks Surge Following Kazatomprom’s Disappointing Production Outlook

    North American Uranium Stocks Surge Following Kazatomprom’s Disappointing Production Outlook

    Uranium-focused investors in North America are rapidly investing in uranium mining companies after the world’s largest producer, Kazatomprom, released production guidance that fell short of market expectations. Shares in North American uranium miners are experiencing a significant rise in premarket trading after Kazakhstan’s state-owned uranium company announced it would produce between 25,000 tons to 26,500 tons of uranium next year. Although this is an increase compared to 2024 levels, analysts note that it falls short of the company’s subsoil use agreements in Kazakhstan.

    Adam Rodman, founder of Segra Capital Management, commented on Friday that this revised outlook brings the entire production curve down for several years, describing it as a “miss.” Rodman indicated that as a result, he would be increasing investments in North American uranium miners, including companies like NexGen Energy Ltd., where Segra Capital already holds shares.

    US-listed uranium stocks have already begun to soar in response. Cameco Corp. shares rose by as much as 7.2% in premarket trading, NexGen Energy’s US shares surged by nearly 13%, and Uranium Energy Corp. approached a 10% increase.

    Rodman also pointed out that Kazatomprom’s low production guidance might require the company to seek regulatory approval to downgrade its production targets for the year at several key sites. Despite Kazatomprom’s guidance suggesting a 7.1 million pound “ramp-up,” BMO Capital Markets analyst Alexander Pearce noted that the uranium market is expected to remain in a deficit.

  • Kazatomprom Raises 2024 Uranium Production Guidance After Strong First Half

    Kazatomprom Raises 2024 Uranium Production Guidance After Strong First Half

    Kazakhstan’s Kazatomprom (LON: KAP) announced on Thursday that it has raised its production guidance for 2024following an increase in output during the first half of the year. The world’s top uranium producer now expects to produce between 22.5 million and 23.5 million tonnes of uranium in 2024, up from the previous guidance of 21 million to 22.5 million tonnes.

    The updated forecast comes after the company boosted its uranium production by 6% year-on-year in the first half of 2024, reaching 10,857 tonnes. Production on an attributable basis rose 7% to 5,797 tonnes.

    Despite the increase in production, Kazatomprom and its subsidiaries experienced an 18% decrease in sales in the first half of the year, totaling 7,779 tonnes. However, the average price of uranium concentrate surged by 41% to $66.22/lb.

    Earlier this year, uranium prices soared to a 15-year high of $104/lb due to tight supply and rising demand. The company noted that average realized prices for the second quarter and the first half of 2024 were higher than in the same periods of 2023, primarily due to an increase in the uranium spot price.

    “The company’s current contract portfolio pricing reflects uranium spot prices. However, some long-term contracts for 2024 include fixed pricing components and price ceilings that were set during a period of lower prices,” Kazatomprom said in a statement.

  • Kazatomprom Begins Geological Exploration at the Eastern Section of Zhalpak Deposit

    Kazatomprom Begins Geological Exploration at the Eastern Section of Zhalpak Deposit

    Kazatomprom, the leading uranium company in Kazakhstan, has received permission to conduct geological exploration at the Eastern section of the Zhalpak deposit. This authorization will enable the company to investigate and refine the uranium reserves in this area. Previously, exploration funded by Kazatomprom discovered uranium deposits of categories P1 and P2. The potential reserves at the Zhalpak deposit are preliminarily estimated at 30 thousand tons of uranium. The new geological exploration aims to convert these resources into reserves of categories C2 and C1 and to determine more accurate uranium reserves. The exploration project is planned for six years, after which the calculated reserves will be recorded on the state balance sheet. Currently, Kazatomprom is extracting uranium from 26 deposits and accounted for about 20% of the world’s primary uranium production in 2023.

     

  • Changes in Uranium Mining Tax Rates Announced for 2025

    Changes in Uranium Mining Tax Rates Announced for 2025

    In 2025, the Republic of Kazakhstan will see a change in the mineral extraction tax (MET) rate on radioactive metals, according to the press center of the atomic company Kazatomprom. Starting from the first day of the new year, the tax on the extraction of valuable minerals will be set at 9%. From 2026, a differentiated tax will be introduced, allowing the MET rate to vary between 4% and 18%.

    The rate will depend on the actual amount of uranium extracted under each specific contract, as well as the cost of natural uranium concentrate. If the annual extracted volume is up to 500 tons, the enterprise will be taxed at 4%. For annual production levels up to 1,000 tons, the rate will rise to 6%, up to 2,000 tons — 9%, up to 3,000 tons — 12%, and up to 4,000 tons — 15%. If more than 4,000 tons of uranium is mined in a year, the MET will reach 18%.

    It is important to note that if a certain weighted average price of uranium is exceeded, the tax rate will increase. For example, if the average cost exceeds $70 per pound of concentrate, the tax rate will increase by 0.5%. If the price surpasses $110 per pound, an additional 2.5% will be added to the existing rate.

    Until the end of 2024, uranium companies will continue with the current taxation procedure. Since January 1 of last year, the MET has been 6%. The management of Kazatomprom expects that in 2026, all subsidiaries and joint ventures of the national company will be able to benefit from the differentiated tax calculation approach.

  • Kazatomprom Signs New Contract for Mining Operations at Inkai Deposit

    Kazatomprom Signs New Contract for Mining Operations at Inkai Deposit

    Kazatomprom JSC has signed another mining contract. The agreement involves extracting radioactive metal from the subsurface of site No. 3 at the Inkai deposit. The relevant documents were signed following negotiations with the Ministry of Energy of Kazakhstan. This contract is crucial for the national company as it will significantly increase its mineral resource base, according to the operator’s press center.

    According to Kazatomprom, obtaining the license will allow the extraction of 701 tons of metal over the next four years. It is noteworthy that Inkai holds significant uranium reserves and is one of the main uranium deposits in the country. Experts estimate the reserves at the site to exceed 83,000 tons. Furthermore, developing these resources will positively impact the Turkestan region.

    Additionally, the company believes that in the future, the contract for the right to develop this area will go to Kazatomprom-SaUran LLP, a subsidiary of the current operator.