MINEX Forum

Tag: Kazatomprom

  • Kazatomprom expects adjustments to its 2024 Production Plans

    Kazatomprom expects adjustments to its 2024 Production Plans

    National Atomic Company “Kazatomprom” JSC (“Kazatomprom”, “KAP” or “the Company”) expects its 2024 production to be adjusted due to the challenges related to the availability of sulphuric acid, a critical operating material, as well as delays in completing construction works at the newly developed deposits, however remains committed to its 2024 delivery obligations.

    In August 2022, Kazatomprom’s Board of directors has approved the Company’s intention to increase production volumes in 2024 to a 90% level relative to Subsoil Use Agreements. The decision to shift production from 80% in 2023 to approximately 90% in 2024 (against Subsoil Use Agreements) was based primarily on Kazatomprom’s continued success in signing mid- and long-term contracts with new and existing customers.

    In August 2022, the Company has also highlighted, and reiterated in its communications throughout 2023, the risks associated with increasing the production due to the challenges related to global supply chains and limited availability of certain key operating materials and reagents.

    Kazatomprom has been putting its best efforts and is continuing to work on securing the supply of critical operating materials and reagents, however the challenging situation around sulphuric acid is evolving in Kazakhstan and in the region. Given the growing demand from agricultural and industrial enterprises and shortages on both domestic and foreign regional markets, preliminary agreements with suppliers resulted in securing lower than required volume of sulphuric acid for 2024.

    While actively pursuing alternative sulphuric acid supplies, current projections indicate that the Company’s intention to achieve 90% production volume as per Subsoil Use Agreements in 2024 may be challenging.

    The exact impact on the Company’s operational performance is now being assessed and will be detailed in the upcoming production guidance for 2024 as part of the Q4 2023 Trading Update, which is expected to be released no later than 1 February 2024.

    Kazatomprom remains committed to fulfilling contractual obligations towards all existing customers throughout 2024. If limited access to sulphuric acid continues throughout this year, and should the Company not succeed in catching up with the construction works schedule at the newly developed deposits in 2024, Kazatomprom’s 2025 production plan may also be affected, subject to considerable supply chain risks. Updated 2025 production plans are expected to be communicated around the H1 2024 results disclosure but successful return to a 100% of the Subsoil Use Agreements can be viewed as at risk.

    The Company continues its efforts to solve the aforementioned issues and will update its stakeholders accordingly as the situation with the sulphuric acid availability and its impact on production continues to develop.

    Uranium reserves remaining in the ground as a result of deviation from production schedules will be available for production as a source of revenue in the future, creating long-term value for our shareholders.

  • Kazakhstan plans to increase uranium production

    Kazakhstan plans to increase uranium production

    Uranium mining in Kazakhstan is carried out by NAC Kazatomprom, reports the Sputnik Kazakhstan website .

    Over the previous 7 years, the level of uranium production in the country has decreased annually by 20% due to market conditions, however, with an increase in buyers, the need for uranium mining also increases, so the level of production capacity will be increased.

    In particular, an agreement on the supply of finished products was signed with the UAE.

    The company also plans to reduce import dependence by starting the construction of a plant for the production of sulfuric acid, since sulfuric acid is an important component in uranium mining, and the quantity produced in Kazakhstan is not enough.

    In addition, it is planned to build an onshore processing complex in the Turkestan region and refining production of uranium oxide at the Ulba Metallurgical Plant.

    The cost of these projects is 130 billion tenge.

  • Kazatomprom shares fell by 6.64% on the London Stock Exchange

    Kazatomprom shares fell by 6.64% on the London Stock Exchange

    Shares of Kazatomprom fell by 6.64% at the end of trading in London, likely due to a delayed response to the ban on Russian uranium supplies to the United States. Bizmedia.kz reports this .

    In addition, according to market participants, the drop is due to the fact that Kazatomprom was included on December 15 in the Sprott Junior Uranium Miners ETF. Initially, its weight in the index was 10.8%, and in response to increased demand, the company’s shares rose in price.

    However, Sprott Junior Uranium Miners and Nasdaq soon announced that the revision of the index composition was carried out with errors. Details are not specified.

    The Kazakh company has close production ties with Russia. Especially in 2022, when Russian companies received the right to develop the largest uranium deposit in the world in the Turkestan region.

    This happened after the acquisition of shares in the Stepnogorsk Mining and Chemical Combine from Russian billionaire Vasily Anisimov and Kazakh entrepreneur Yakov Klebanov (son of billionaire Alexander Klebanov).

  • Kazatomprom implements digital technologies in industrial safety

    Kazatomprom implements digital technologies in industrial safety

    A forum dedicated to the digitalization of industrial safety of NAC Kazatomprom JSC was held in Shymkent. The event was attended by managers and employees of subsidiaries and affiliates of the nuclear holding. Forum participants discussed the implementation of automation and digitalization in the field of industrial safety, labor and environmental protection, as well as radiation and nuclear safety.

    Kazatomprom’s subsidiary KAP Technology LLP (IT integrator of the nuclear holding) presented plans for the development of eKAP and eKAP HSE information systems in the field of industrial safety, namely the automation of processes for managing personnel admission to high-risk work.

    “The safety and health of each employee are Kazatomprom’s top priorities. The company applies a whole range of measures and best international practices to prevent accidents and incidents, and also systematically works with its staff to improve the safety culture at all enterprises of the nuclear holding. A key element of the safety policy is the Vision Zero concept, the goal of which is to reduce the level of injuries at work to zero. To achieve this goal, Kazatomprom enterprises regularly improve industrial safety and labor protection systems, introduce modern automated and digital systems, ensuring the safety of people and the environment,” said Mukhit Magazhanov, Chief Director for General Affairs of NAC Kazatomprom JSC.

    Also during the forum, the capabilities of a video analytics system in production were presented. The digital solution allows you to identify and recognize employees, monitor the situation on site, and monitor staff compliance with safety regulations and labor protection standards. With the help of analytics, industrial specialists can identify potentially dangerous situations and use the system to investigate incidents.

    “These projects will automate processes such as pre-shift medical examination of workers, pre-shift and post-shift medical examination of personnel, issuance of an electronic permit for high-risk work, recording of dangerous conditions and actions, and training,” commented Nikolay Melnikov, General Director of LLP “ KAP Technology” NAC Kazatomprom JSC.

    Moreover, the SAP EHSM information system was presented at the event. The project helps improve environmental, labor and health protection, build a safe working environment, and reduce accidents and incidents at work.

    The use of digital innovations will allow the nuclear holding to increase the efficiency of industrial safety and ensure the company’s competitiveness.  

  • Kazatomprom will develop digital projects

    Kazatomprom will develop digital projects

    The national nuclear company Kazatomprom and its subsidiary KAP Technology signed a cooperation agreement with Siemens. They intend to implement projects related to the digitalization and automation of Kazatomprom divisions, reports the press service of the Kazakh enterprise.

    Siemens and KAP Technology have been working together for four years. The foreign enterprise supplies the partner with technological equipment, and also provides consulting, engineering and service services in the field of industrial automation.

    Now the nuclear holding has decided to expand cooperation with Siemens. The new strategic agreement included items such as joint pilot projects on the development and use of the latest digital technologies at uranium mining enterprises in Kazakhstan.

    In addition, the parties intend to work on developing training programs to train highly qualified specialists in the field of automation of production processes. Company managers believe that this will increase the number of successfully implemented investment projects.

  • Kazatomprom entered into a contract with Emirates Nuclear Energy Corporation for the supply of natural uranium concentrate

    Kazatomprom entered into a contract with Emirates Nuclear Energy Corporation for the supply of natural uranium concentrate

    National Atomic Company Kazatomprom and the UAE energy company Emirates Nuclear Energy Corporation (ENEC) signed the first ever contract for the supply of Kazakh natural uranium concentrate for the energy needs of the UAE Barakah nuclear power plant.

    The signing took place as part of the official visit of the President of the Republic of Kazakhstan Kassym-Jomart Tokayev to the United Arab Emirates, during which the Kazatomprom delegation took part in the United Nations Climate Change Conference COP28.

    “We are proud that the first ever commercial contract between Kazatomprom and ENEC will mark the beginning of an important and promising cooperation between our companies. We are very pleased that our sales geography has expanded to the UAE and highly appreciate the recognition of Kazatomprom’s role in ensuring the UAE’s energy security and achieving zero emissions, which indicates our company’s strong reputation as a reliable supplier in the global nuclear fuel market. We hope that in the future our partnership will only strengthen thanks to the signing of new contracts aimed at ensuring uninterrupted supplies of natural uranium for the Baraka nuclear power plant,” said Meirzhan Yusupov, Chairman of the Board of NAC Kazatomprom JSC.

    “Signing a contract with Kazatomprom, the world’s largest uranium producer, is strategically important for ENEC in terms of further diversification and ensuring the security of nuclear fuel supplies. With many countries making a significant positive shift towards incorporating civil nuclear power into their energy mix, the security of fuel supply is of paramount importance. Kazatomprom is expanding our list of partners to ensure a sustainable supply of fuels to produce clean electricity to decarbonize energy-intensive and heavy industries in the UAE,” said Mohamed Al Hammadi, Managing Director and Chief Executive Officer of ENEC.

    The conclusion of this contract with a large UAE energy company will serve as a new impetus for cooperation between nuclear companies of both countries, and will also open a new country in the sales geography of Kazatomprom.

    The scope and commercial terms of the contract are confidential and commercially sensitive and are not subject to public disclosure.

  • Kazatomprom and Siemens will cooperate in the field of digitalization and automation

    Kazatomprom and Siemens will cooperate in the field of digitalization and automation

    NAC Kazatomprom JSC and its subsidiary KAP Technology LLP entered into a strategic cooperation agreement with Siemens LLP in the field of digitalization and automation of subsidiaries of the nuclear-holding company.

    Since 2019, Siemens has been an official partner of KAP Technology LLP in the provision of process equipment, as well as consulting, engineering and services in the field of industrial automation, which served as the foundation for further expansion of cooperation with the nuclear holding.

    “Kazatomprom is actively working to develop and implement innovative projects in the field of digitalization and automation of production. The use of advanced technologies, equipment, and partner software has already shown results in optimizing production processes and improving the quality of products. I am confident that further cooperation with Siemens will have a positive impact on the development of the entire digital ecosystem of the nuclear holding,” said Mukhit Magazhanov, Chief Director for Procurement and General Issues of Kazatomprom.

    The strategic agreement provides for joint participation in pilot projects to introduce advanced technologies at uranium mining enterprises, as well as the active development of training programs aimed at training highly qualified personnel for the successful implementation of innovative projects.

    The parties plan to significantly increase the level of automation and digitalization of enterprises, which will strengthen Kazatomprom’s status as a leader in the uranium mining industry and ensure competitiveness in the global market.

    This strategic partnership underscores the companies’ shared ethos of innovation and reaffirms their commitment to advancing the industry through cutting-edge technology and educational initiatives.

  • Kazatomprom will supply uranium to China

    Kazatomprom will supply uranium to China

    National Atomic Company Kazatomprom has signed a contract for the supply of Kazakh natural uranium concentrate with China National Uranium Corporation Limited – CNUC (a subsidiary of China National Nuclear Corporation – CNNC), the company’s press service reports.

    This contract with a Chinese energy company will help meet China’s growing need for clean, carbon-free electricity and strengthen the historically long-standing nuclear relationship between the two countries.

    “Kazatomprom’s market-driven strategy aims to produce, process and sell natural uranium concentrates to create long-term value for all stakeholders. Close cooperation with one of the large Chinese energy companies, like CNUC, testifies to Kazatomprom’s strong reputation as a reliable and preferred supplier in the global nuclear fuel market,” added Seitzhan ZHANYBEKOV, Managing Director for Strategy and Marketing of NAC Kazatomprom JSC .

  • 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.

  • Kazakhstan may receive uranium enrichment technology from French Orano

    Kazakhstan may receive uranium enrichment technology from French Orano

    “Currently, in accordance with the instructions of the head of state, the possibilities of Kazatomprom’s participation in uranium conversion and enrichment technologies are being considered. The Orano company is one of the world leaders, possessing all the technologies, and the agreement, which was signed at the Kazatomprom level, also involves studying the possibility of Kazatomprom entering and obtaining these technologies,” Mr. Satkaliev said at the briefing.

    The Minister of Energy emphasized that Kazakhstan needs to expand its presence in the full cycle of uranium processing.

    “We have unique competencies in mining and primary processing; we are number one in the world in uranium supply and uranium export. We have operating research reactors. That is, the missing link in this cycle is the conversion and enrichment of uranium, and now the Kazatomprom company, in accordance with the instructions of the head of state, is studying the possibility of covering this cycle,” added the head of the Ministry of Energy.

    He did not specify where the final products will be sent, noting that “it depends on world market conditions.”

    Earlier it was reported that the management of the Samruk-Kazyna state fund discussed with the chief operating officer of the Orano group, Nicolas Maes, the expansion of cooperation on the Kazakh-French uranium enterprise Katko LLP. The French side voiced a proposal to expand areas of cooperation, including the implementation of joint strategic projects outside of Kazakhstan.

    Kazakh-French joint venture Katko LLP was founded in 1996, its participants are Kazatomprom and Orano Mining – the Kazakh division of the French Orano Mining, which, in turn, is part of Orano SA. Katko mines uranium using the in-situ leaching method in the northern part of the N1 (South) section and in the N2 (Tortkuduk) section of the Moyynkum deposit in the Turkestan region of Kazakhstan.

    In December 2022, Kazatomprom and Orano Mining signed a memorandum of cooperation in the nuclear industry, in particular, on the further development of the Katko joint venture as part of the official visit of the President of Kazakhstan Kassym-Jomart Tokayev to France.

    Kazatomprom, controlled by the state, is engaged in the mining of uranium, processing of rare metals, production and marketing of beryllium and tantalum products. Kazatomprom estimates its share in the global natural uranium mining market at 22% by the end of 2022. Kazakhstan annually supplies more than 45% of the world nuclear energy needs for uranium products.