MINEX Forum

Tag: nuclear energy

  • Kazakhstan’s Nuclear Two-Step: Rosatom to Build First Plant, China Likely for Second

    Kazakhstan’s Nuclear Two-Step: Rosatom to Build First Plant, China Likely for Second

    Kazakhstan has officially selected Russia’s Rosatom to build its first nuclear power plant, deepening energy ties with Moscow — but within hours, the country signaled a balancing act by revealing plans for a second plant likely to be built by China.

    In an unusual Saturday announcement on June 14, Kazakh authorities confirmed Rosatom as the winner of the long-running bid to construct the first plant in Ulken, near Lake Balkhash. The same day, the head of Kazakhstan’s nuclear energy agency, Almassadam Satkaliyev, said a second nuclear power station would likely be built by China’s state-owned China National Nuclear Corporation — the runner-up in the initial bid.

    This dual-track approach reflects Kazakhstan’s broader geopolitical strategy of maintaining equilibrium between its powerful neighbors: Russia and China. While Rosatom brings deep integration advantages — from uranium processing and cultural ties to favorable financing and waste disposal — the inclusion of a Chinese-built second plant helps offset dependence on Moscow.

    “Rosatom’s proposal does look strong in technical and financial terms,” said energy researcher Shaimerden Chikanayev. Yet, he added, the political cost of excluding China likely triggered Astana’s swift pivot.

    The Rosatom-led project is slated for completion by 2036, with a price tag of at least $15 billion. The financing details remain murky, though Kazakhstan insists it will retain ownership, distancing itself from Turkey’s Akkuyu model, where Rosatom owns the facility outright.

    The announcement landed just days before Chinese President Xi Jinping’s visit to Kazakhstan for the second China–Central Asia summit — potentially souring Beijing’s expectations of regional energy investment leadership. Political analyst Dosym Satpayev noted the timing could have left “an unpleasant aftertaste for Beijing.”

    Officials now appear eager to proceed with both reactors in parallel. Deputy Prime Minister Roman Sklyar even suggested the Chinese-built plant could be completed first, depending on the technology used.

    However, financial questions loom large. “Kazakhstan will be paying back the Russian loans for a very, very long time,” warned energy analyst Olzhas Baidildinov, with electricity tariffs likely to bear the burden.

    As Astana juggles energy security with foreign policy nuance, the outcome of its nuclear ambitions may shape the region’s balance of power for decades to come.

  • Kazakhstan Selects CNNC to Lead Construction of Second Nuclear Power Plant

    Kazakhstan Selects CNNC to Lead Construction of Second Nuclear Power Plant

    Kazakhstan has chosen China National Nuclear Corporation (CNNC) to lead the consortium that will build the country’s second nuclear power plant, according to Almasadam Satkaliyev, head of the Atomic Energy Agency. The two sides plan to sign a general cooperation agreement on nuclear energy.

    Satkaliyev emphasized that China has full technological capabilities and industrial infrastructure to handle the entire nuclear cycle independently, making CNNC a top priority partner. He also highlighted CNNC’s ability to deliver “fast and high-quality” results.

    Previously, Kazakhstan selected Russia’s Rosatom as the lead for its first nuclear power project. Other shortlisted contenders included France’s Électricité de France (EDF) and South Korea’s Korea Hydro & Nuclear Power (KHNP). Satkaliyev described the Russian and Chinese proposals as “objectively the strongest.”

    The country’s nuclear ambitions have been progressing since 2021. In 2023, a national referendum showed strong public support for building a nuclear plant, with over 70% voting in favor. According to an official decree, the second nuclear plant will be built in the Zhambyl district of the Almaty region.

    The project will be handled by an international consortium of no more than five countries, with political risk assessments taken into account. The government expects the technical feasibility study to take one year and the design and planning stage another 18 months.

  • 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.

  • Rosatom Sues Finnish Firms for $2.8 Billion Over Cancelled Nuclear Plant Contract

    Rosatom Sues Finnish Firms for $2.8 Billion Over Cancelled Nuclear Plant Contract

    Russia’s state nuclear corporation Rosatom has launched a high-stakes lawsuit in Moscow against Finnish companies Fortum and Outokumpu, seeking 227.8 billion roubles (approximately $2.8 billion) in damages related to the cancelled Hanhikivi-1 nuclear power plant project in Finland.

    The lawsuit alleges unlawful termination of the EPC (engineering, procurement, and construction) contract and further violations of a shareholder agreement, a nuclear fuel supply deal, and an outstanding loan that Rosatom claims has not been repaid. The contract to construct the 1.2-gigawatt power plant was originally signed in 2013, with planned investments estimated at €6.5–7 billion. However, the Finnish government terminated the agreement in May 2022, citing geopolitical risks following Russia’s invasion of Ukraine, project delays, and overall uncertainty surrounding the project’s feasibility.

    Fennovoima, the Finnish-led consortium behind the Hanhikivi-1 project—of which Outokumpu, Fortum, and SSAB are key stakeholders—responded by initiating international arbitration proceedings to reclaim €1.7 billion in advance payments. Rosatom, in turn, filed counterclaims totaling €3 billion. Both cases are currently being heard in international courts.

    Fortum, once a major foreign investor in Russia’s energy sector, has faced growing losses in the country. In 2023, it effectively lost control of its Russian operations when the Kremlin, under a presidential decree by Vladimir Putin, temporarily seized control of Fortum’s power plants and renewable energy assets.

  • Kazakhstan Proposes Uranium Mining Contract to Turkey to Fuel Its Growing Nuclear Energy Program

    Kazakhstan Proposes Uranium Mining Contract to Turkey to Fuel Its Growing Nuclear Energy Program

    Kazakhstan has proposed a long-term partnership with Turkey in the nuclear fuel cycle, offering a contract for uranium mining within Kazakhstan to help meet Turkey’s rapidly growing demand for nuclear energy. The announcement was made by Bauyrzhan Duisebayev, Director General of the Chemical Engineering Design Bureau, during the MINEX Kazakhstan forum.

    Duisebayev highlighted that Turkey is emerging as a major nuclear player with four reactors under construction and four more planned. He emphasized that Kazakhstan, given its vast uranium reserves and experience, is a natural partner. He estimated that Turkey’s two existing nuclear plants alone will require 1,800 tonnes of uranium annually, and that future demand could reach 5,000 to 8,000 tonnes per year.

    A presentation prepared for Turkish officials outlined Kazakhstan’s proposed role in the entire nuclear fuel cycle — from uranium mining to fuel fabrication. Currently, Kazakhstan mines uranium in collaboration with Russia, where it is converted, enriched, and fabricated into nuclear fuel. Duisebayev suggested Kazakhstan could independently provide conversion services, potentially at facilities like the Ulba Metallurgical Plant or the Stepnogorsk Mining and Chemical Plant.

    He noted that Turkish officials had expressed interest in nuclear cooperation during President Erdoğan’s visit to Astana for the SCO summit in July 2024, but no uranium contracts have yet been signed. Duisebayev emphasized that Turkey could become involved in three stages of the nuclear cycle — mining, conversion, and fuel fabrication — and eventually, more, except for enrichment, which still requires time and development.

    He also outlined Kazakhstan’s long-term strategy to shift from selling natural uranium to offering higher-value products like uranium tetrafluoride and hexafluoride, enriched uranium, and eventually, only nuclear technologies and energy. This transition is driven by expectations that global uranium demand may decline by 2040 due to the rise of alternative reactors, such as thorium or fast reactors that do not rely on natural uranium.

    Duisebayev mentioned that conversion operations could be hosted not only in Stepnogorsk, now part of Rosatom’s structure, but also in Ust-Kamenogorsk or Uralsk. He expressed hope for progress with or without Turkish participation, including potential cooperation with Rosatom.

    Turkey’s first nuclear power plant, Akkuyu, is being built by Rosatom under a build-operate-transfer model. It will consist of four VVER-1200 reactors with a total capacity of 4,800 MW. The construction cost is estimated at $24–25 billion, with Russia providing both the fuel and the handling of spent nuclear material.

  • Kazakhstan and China Discuss Nuclear Energy Cooperation

    Kazakhstan and China Discuss Nuclear Energy Cooperation

    Kazakhstani President Kassym-Jomart Tokayev met with Shen Yanfeng, General Director of China National Nuclear Corporation (CNNC), to explore opportunities for collaboration in nuclear energy.

    During the discussion, Tokayev outlined Kazakhstan’s strategic plans for the sector, highlighting the recent establishment of the Nuclear Energy Agency to oversee the industry’s systematic development. He expressed interest in CNNC’s extensive expertise as a leading force in China’s nuclear sector.

    Shen Yanfeng, in turn, provided an overview of CNNC’s projects both within China and internationally. The meeting also covered potential cooperation in advancing peaceful nuclear technologies and training Kazakhstani specialists.

    CNNC, founded in 1999, is China’s largest state-owned enterprise dedicated to nuclear energy development, technological innovation, and research.

  • Kazatomprom Expands Global Presence with Swiss and Jordanian Partnerships

    Kazatomprom Expands Global Presence with Swiss and Jordanian Partnerships

    Kazakhstan’s national atomic company is strengthening its international partnerships by signing new agreements with Swiss and Jordanian enterprises. These contracts will allow Kazatomprom to expand its global market presence, according to official reports.

    The first agreement was signed with Axpo Power AG and Kernkraftwerk Leibstadt AG, a nuclear power plant in Switzerland. Under this deal, Kazatomprom will supply uranium to Western Europe’s nuclear reactors. Additionally, another Swiss nuclear power plant will start purchasing Kazakh uranium fuel.

    The second contract was signed with JUMCO, a Jordanian uranium mining company. The two sides plan to conduct joint geological exploration in Jordan, leveraging Kazakhstan’s expertise as a global uranium industry leader.

    Beyond exploration, the partners may collaborate on metal extraction, resource assessment, and optimizing the in-situ leaching technology. JUMCO emphasizes the need to prioritize environmental protection and industrial safety in their operations.

    Earlier this year, Kazatomprom expanded its exploration portfolio within Kazakhstan, securing a new license for a uranium deposit at the Inkai site.

  • Hungary’s MOL Expands Oil and Gas Operations in Kazakhstan, Eyes Broader Energy Partnership

    Hungary’s MOL Expands Oil and Gas Operations in Kazakhstan, Eyes Broader Energy Partnership

    Hungarian energy company MOL has secured approval to expand its oil and gas extraction operations in western Kazakhstan, following a new agreement with the Kazakh government. To date, MOL has invested 80 billion forints in the region, producing 300 million cubic meters of gas from a field where it operates five wells. The agreement supports MOL’s participation in developing additional oil and gas fields, leveraging its advanced extraction technologies to tackle challenging reserves.

    Hungarian Foreign Minister Péter Szijjártó announced the deal at a press conference, highlighting the emergence of a broader Kazakh-Chinese-Hungarian strategic partnership. This collaboration could enable MOL to participate in the development of a large, technologically complex field, further boosting energy production.

    The partnership also opens doors for cooperation in nuclear energy. Szijjártó revealed that dry cooling technology, developed by Hungarian company MVM, is being considered for cooling future nuclear power plants in Kazakhstan. This follows a recent referendum in Kazakhstan approving the construction of such facilities.

    In addition, Hungarian firm Globalia has been approved to build solar power plants in several regions of Kazakhstan. Key initiatives under the partnership include the construction of a multimodal cargo terminal in Budapest, increased supplies of Kazakh oil to Hungary, and the transport of uranium and critical minerals.

    To support these projects, a joint investment fund will be established, strengthening energy and infrastructure ties between the two nations.

  • Kazakhstan’s Nuclear Energy Future: Insights from Expert Panel Discussion

    Kazakhstan’s Nuclear Energy Future: Insights from Expert Panel Discussion

    Kazakhstan, known for its abundant uranium reserves, stands at a pivotal moment as it considers expanding its role in the global nuclear energy sector beyond mere resource supply.  In a significant move that could reshape Central Asia’s energy landscape, Kazakhstan is advancing plans to develop nuclear power capabilities, with potential implications for both domestic energy security and global nuclear fuel markets. A recent British-Kazakh Society webinar brought together international experts to examine the opportunities and challenges ahead.

    The webinar featured a panel of distinguished experts, moderated by Nicholas Pomeroy, General Director of AngloKazakh. The panel included Ben Godwin, Managing Partner at PRISM Strategic Intelligence; Aldiyar Toktarov, Chairman of the Atomic Industry Development Association; Mehmet Ogutcu, Chairman of the London Energy Club and Biplab Rakshi, Managing Director of Atomic Acquisitions.

    Nuclear Power in Kazakhstan: Ambitious Plans Meet Complex Realities

    In a significant move that could reshape Central Asia’s energy landscape, Kazakhstan is advancing plans to develop nuclear power capabilities, with potential implications for both domestic energy security and global nuclear fuel markets.  The country faces an existing electricity deficit and increasingly relies on electricity imports. With about 70% of current electricity generation coming from coal, Kazakhstan must balance its ambitious 2060 net-zero target against growing energy demands. The government’s plan to decommission all coal power plants by 2050 adds urgency to developing alternative baseload power sources.

    Following a national referendum that approved nuclear power development, Kazakhstan has announced plans for not just one, but potentially three nuclear power plants: one in the initial phase, with additional facilities proposed for West Kazakhstan (Aktau) and East Kazakhstan. This ambitious scope has raised both excitement and concerns among industry observers.

    The Consortium Question

    A key focus of Kazakhstan’s nuclear strategy is the formation of an international consortium to construct and operate the plants. While the exact composition remains unannounced, President Tokayev has pointed to Turkey’s Akkuyu nuclear project as a potential model. However, experts at the webinar highlighted both opportunities and risks in this approach.

    The Turkish model, which relies heavily on Russian state nuclear corporation Rosatom for financing and technology, has faced challenges including sanctions-related complications affecting international equipment supplies. This has led to cost overruns and delays, prompting suggestions that Kazakhstan might benefit from a more diversified partnership approach.

    Sanctions and International Partners

    The role of Russian participation emerges as a particularly complex issue. While Rosatom itself isn’t under direct sanctions, experts noted that 70 of its subsidiaries and key personnel are designated under various international sanctions regimes. This creates potential complications for international financing and technology transfer.

    Ben Godwin, partner at PRISM Strategic Intelligence, emphasised that while Russian involvement might seem inevitable given regional ties, Kazakhstan will need to carefully structure any such participation to avoid compromising other international partnerships and financing options.

    Local Content and Industrial Development

    A recurring theme in the discussion was Kazakhstan’s opportunity to develop domestic nuclear industry capabilities. Aldiyar Toktarov, chairman of the Atomic Industry Development Association, highlighted how multiple nuclear projects could create economies of scale that justify investments in local supply chains and workforce development.

    Kazakhstan’s position as the world’s largest uranium producer provides unique leverage. Experts suggested the country could use this advantage to negotiate better terms with technology vendors and potentially develop higher-value nuclear fuel cycle capabilities domestically.

    Regulatory and Financial Challenges

    The development of an appropriate regulatory framework emerges as a critical near-term priority. Currently, Kazakhstan lacks an independent nuclear regulator, though experts noted this could be developed following IAEA guidelines. The financial aspects also present challenges, with nuclear projects notorious for cost overruns. Recent examples cited include the UK’s Hinkley Point C project, whose budget has escalated from £16 billion to potentially £40-50 billion.

    Kazakhstan’s current fiscal situation adds another layer of complexity. With the country already dedicating over 20% of its budget to debt service, financing multiple large infrastructure projects simultaneously will require careful planning and potentially innovative funding approaches.

    Looking Ahead

    The path forward for Kazakhstan’s nuclear ambitions will require balancing multiple priorities. These include:

    – Developing clear criteria for consortium partners that address both technical and geopolitical considerations
    – Building robust regulatory frameworks aligned with international standards
    – Creating sustainable financing structures that don’t overburden state resources
    – Maximising local content and industrial development opportunities
    – Ensuring environmental and safety standards meet international best practices

    While the timeline for announcing the initial consortium structure appears to be measured in months rather than years, experts emphasized the importance of “hurrying slowly” to ensure proper foundation-laying for what will be a multi-decade program.

    The success of Kazakhstan’s nuclear power program could have implications beyond its borders, potentially offering a model for other developing nations seeking to balance energy security, economic development, and climate goals. However, the complexity of the challenges ahead suggests that careful planning and international cooperation will be essential for turning these ambitious plans into reality.

    The British-Kazakh Society plans to host further webinars to delve deeper into these critical areas, ensuring continued dialogue and progress. For more information on upcoming events, visit the BKS website.

  • 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.