MINEX Forum

Tag: Kazatomprom

  • Kazatomprom Secures Exclusive Uranium Exploration License for Inkai-Mynkuduk Block in Turkestan Region

    Kazatomprom Secures Exclusive Uranium Exploration License for Inkai-Mynkuduk Block in Turkestan Region

    National Atomic Company Kazatomprom JSC (Kazatomprom), the world’s largest uranium producer, announced on 30 January 2025 that it has secured an exclusive subsoil use license to explore uranium deposits at the Inkai-Mynkuduk block, located on the northern flank of the Inkai deposit in Kazakhstan’s Turkestan region. The license, granted by Kazakh authorities, permits exploration activities for six years, with an option to extend for an additional five years.

    Strategic Expansion in Shu-Sarysu Uranium Province
    The newly licensed Inkai-Mynkuduk block lies within the prolific Shu-Sarysu uranium province, a region renowned for its sandstone-hosted uranium reserves. Preliminary geological assessments estimate inferred resources (P1 and P2 categories) exceeding 20,000 tonnes of uranium, underscoring the area’s potential to bolster Kazakhstan’s position as a global leader in uranium supply.

    CEO Highlights Growth and Sustainability Goals
    “This license marks a pivotal step in our strategy to secure long-term resource bases while adhering to sustainable extraction practices,” said Yerzhan Mukanov, CEO of Kazatomprom. “The Inkai-Mynkuduk block complements our existing operations and aligns with growing global demand for nuclear energy as a low-carbon solution.”

    Next Steps
    Kazatomprom plans to commence exploration activities immediately, focusing on detailed geological surveys and drilling programs to confirm resource estimates. The company emphasised its commitment to environmental stewardship and community engagement throughout the project lifecycle.

    About Kazatomprom
    National Atomic Company Kazatomprom JSC is the world’s largest producer of natural uranium, with operations across Kazakhstan. The company supplies uranium to nuclear utilities globally and prioritizes safe, sustainable mining practices aligned with the UN Sustainable Development Goals. Kazatomprom’s shares are listed on the London Stock Exchange (LSE: KAP) and the Astana International Exchange (AIX: KAP).

    For media inquiries:
    Kazatomprom Press Office
    Email: press@kazatomprom.kz
    Phone: +7 (7172) 45 80 63

    Forward-Looking Statements
    This release contains forward-looking statements regarding resource estimates and exploration outcomes. Actual results may differ due to technical, economic, or regulatory factors.

  • Kazatomprom Increased Uranium Production in 2024

    Kazatomprom Increased Uranium Production in 2024

    January 27, 2025, 14:51 / Astana, Kazakhstan 

    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 Resumes Uranium Production at Inkai JV in Kazakhstan

    Cameco Resumes Uranium Production at Inkai JV in 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.

  • Kazatomprom Updates Strategy for 2025–2034 to Strengthen Global Market Leadership

    Kazatomprom Updates Strategy for 2025–2034 to Strengthen Global Market Leadership

    Kazatomprom, Kazakhstan’s leading atomic energy company, has revealed its updated strategic plan for 2025–2034, aiming to build on the successes of its 2018–2028 strategy. The refreshed goals focus on enhancing the company’s uranium resources, expanding into the rare and rare-earth metals sector, and improving trading operations. The strategy aims to ensure long-term sustainable value creation and strengthen Kazatomprom’s role in the global nuclear fuel cycle. By diversifying its resource base and increasing its market footprint, the company intends to contribute significantly to the global shift to clean energy.

    The updated strategy also emphasizes optimizing current processes and ensuring alignment with global green energy initiatives. As part of the strategy, Kazatomprom will continue to improve its governance practices and maintain a strong commitment to environmental, social, and governance (ESG) principles. The company’s diversified sales portfolio, including an expanded geographic presence, will help safeguard its long-term competitiveness, even as global demand for nuclear energy and critical minerals rises.

    Kazatomprom aims to secure its position as a global leader, expanding its footprint beyond uranium to meet the growing demand for critical minerals, while also making significant contributions to the economic and social development of Kazakhstan and the regions it operates in.

  • What’s Behind Rosatom’s Sale of Stakes in Kazakhstan to China

    What’s Behind Rosatom’s Sale of Stakes in Kazakhstan to China

    What’s Behind Rosatom’s Sale of Stakes in Kazakhstan to China Russia’s state nuclear corporation Rosatom has sold its stakes in three uranium mining joint ventures in Kazakhstan to Chinese companies, amid sanctions risks and financial needs. The sale includes a 49.99% stake in Zarechnoye, a 30% stake in Khorasan-U, and a 30% indirect stake in Kyzylkum joint ventures with Kazakhstan’s national company Kazatomprom.

    The deal appears to be driven by Kazatomprom’s concerns about potential Western sanctions due to its partnership with Rosatom. As the world’s largest uranium producer, Kazatomprom sells 29% of its production to Europe and wants to avoid sanctions complications that could affect its business. For China, acquiring these stakes aligns with its energy security strategy. While the Zarechnoye deposit has limited reserves (3,500 tons of uranium with 3-5 years of operation left), the Khorasan-1 site contains about 33,000 tons. This acquisition supports China’s ambitious nuclear power expansion plans – the country aims to build over 150 new reactors by 2035, adding to its current 54 operating units.

    The deal benefits Kazakhstan by establishing direct producer-consumer cooperation with China, which has both modern mining technologies and investment capacity, unlike Rosatom’s older extraction methods. While some deposits may be nearing depletion, unexplored areas and potential new partnerships with Kazatomprom make this a strategic investment for China’s growing nuclear sector.

  • Kazakh-Chinese Nuclear Fuel Venture Hits Production Milestone

    Kazakh-Chinese Nuclear Fuel Venture Hits Production Milestone

    The Kazakh-Chinese joint venture, Ulba-TVS LLP, has successfully reached its target production capacity of 200 tons of low-enriched uranium fuel assemblies by the end of 2024. This achievement is enough to reload nuclear fuel for six reactors.

    The Ulba-TVS plant, operational since November 2021, has played a crucial role in meeting the increasing demand for nuclear power in China. The facility, located in Kazakhstan, is the only one in Central Asia dedicated to producing nuclear fuel for power plants. It has received certification from Framatome and recognition as a certified nuclear fuel supplier from the China General Nuclear Power Corporation (CGNPC-URC), the end user in China. This certification enhances the plant’s credibility and ensures the high quality of its nuclear fuel products.

    The joint venture is 51% owned by Ulba Metallurgical Plant (Kazatomprom) and 49% by CGNPC-URC. In December 2022, Ulba-TVS delivered its first consignment of fuel assemblies to a Chinese nuclear power plant. Kazatomprom is the world’s largest producer of uranium, with the company’s attributable production representing approximately 20% of global primary uranium production in 2023.

  • 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.