MINEX Forum

Tag: sanctions

  • Kazatomprom’s Resilience Amid Geopolitical Tensions: A Look at Uranium Supply Dynamics

    Kazatomprom’s Resilience Amid Geopolitical Tensions: A Look at Uranium Supply Dynamics

    Despite the geopolitical turbulence of 2023, the global demand for nuclear power, regarded as a stable and low-carbon energy source, has surged, according to Meirzhan Yussupov, CEO of Kazatomprom, Kazakhstan’s national atomic company. Yussupov highlighted Kazakhstan’s pivotal role, with the country contributing approximately 40% of the world’s uranium production annually, powering a significant portion of the world’s nuclear reactors.

    In light of ongoing global uncertainties and discussions about market bifurcation, Kazatomprom emphasizes its commitment to energy security. Positioned in an ESG-compliant and low-risk jurisdiction, the company asserts its capability to maintain its leadership as a reliable supplier of natural uranium, catering to utilities’ needs in diversifying their supply sources.

    Navigating through the constantly evolving sanctions landscape, Kazatomprom remains vigilant, continually assessing and monitoring sanctions risks. The company has devised an action plan to mitigate potential negative impacts, adjusting it as new risks emerge.

    Despite the geopolitical turmoil, Kazatomprom’s financial position remains robust. With the majority of revenues in US dollars and financing raised likewise, the company benefits from a natural hedging effect against currency risks.

    Regarding sanctions against Russian banks, Kazatomprom has refrained from engaging with sanctioned entities and redirected funds to unsanctioned banks. While maintaining services with Uranium Enrichment Center JSC in Russia, the company scrutinizes compliance with sanctions regimes, aiming to mitigate associated risks.

    Amid concerns about transportation disruptions due to sanctions, Kazatomprom ensures continuous monitoring of potential impacts. Leveraging the Trans-Caspian International Transport Route, the company mitigates risks associated with its primary uranium transportation route.

    Addressing proposed US legislation targeting Russian enriched uranium imports, Kazatomprom asserts its resilience, noting that its primary business focuses on natural uranium production, unaffected by the proposed ban.

    Despite market uncertainties stemming from geopolitical tensions, Kazatomprom reports strong financial performance in 2023. Consolidated revenue surged by 43% compared to 2022, reaching KZT1435 billion (USD3.19 billion), driven by factors such as increased spot market prices for U3O8 and additional sales volumes.

    Looking ahead to 2024, Kazatomprom maintains its production guidance, aiming for 21,000-22,500 tU (100% basis). While the company has secured necessary volumes of sulfuric acid, delays in construction works at new sites pose potential operating uncertainties for the year.

  • US Imposes Sanctions on GeoProMining Over Illegal Gold Mining Activities in Azerbaijan

    US Imposes Sanctions on GeoProMining Over Illegal Gold Mining Activities in Azerbaijan

    The US Treasury Department has announced sanctions against GeoProMining for its involvement in illegal gold mining operations in the Kalbajar region of Azerbaijan during the Armenian occupation, according to a statement by the department. The mining company, which exploited mineral resources in Azerbaijani territories occupied by Armenia, has now faced repercussions under US anti-Russian sanctions.

    During the occupation, Armenian forces extensively exploited mineral deposits in Azerbaijani territories, including Karabakh and Eastern Zangezur. Notably, the largest gold mining zone in the region, situated in Kalbajar, has been under the operation of Russian company GPM Gold, a subsidiary of GeoProMining, since 2007.

    Despite its license permitting mining activities solely in the Armenian part of the mine, evidence suggests that operations extended into occupied Kalbajar, corroborated by satellite imagery. Furthermore, during the Second Karabakh War, GeoProMining reportedly bolstered its defenses in the mine by amassing weapons and deploying mercenaries to confront the Azerbaijani military.

    Additionally, Vartan Sirmakes, a Swiss entrepreneur and jeweler of Armenian descent, allegedly played a role in the exploitation of the Kalbajar mine. Gold extracted from Kalbajar and Zangilan was purportedly auctioned in Switzerland and stored in Swiss banks, implicating Sirmakes in the illicit trade.

  • Swiss ban Russian diamond imports, joining latest EU sanctions

    Swiss ban Russian diamond imports, joining latest EU sanctions

    Switzerland will ban the import of Russian diamonds in line with the latest round of European Union sanctions designed to punish Moscow for its invasion of Ukraine, the government said on Wednesday.

    Bern has agreed to adopt the 12th round of sanctions implemented by the EU in December, with measures effective from Feb. 1, as it has with all previous rounds since the start of the war almost two years ago.

    Among those measures is a phased ban on the purchase and import of Russian diamonds.

    “Switzerland thus joins the measures agreed at the G7 summit on 6 December 2023 to deprive Russia of this important revenue stream,” the government said in a statement.

    Import bans are also being introduced on other goods that generate revenue for Russia, including pig iron and liquid petroleum gas.

    Switzerland said it was expanding its list of banned exports which could be used to strengthen Russia’ military and technology sectors. Exports of lithium batteries, motors for unmanned aerial vehicles, and machine tools and parts have also been added.

    In the financial sector, Russian nationals and individuals living in Russia will be banned from controlling companies in Switzerland that provide crypto-asset services.

    Switzerland has also placed an additional 147 individuals and companies under sanctions, taking the total to 1,422 individuals and 291 organizations.

  • The United States imposed sanctions against Gleb Trotsenko

    The United States imposed sanctions against Gleb Trotsenko

    The latest expansion of American sanctions against Russia has affected businessman Gleb Trotsenko. This is stated in the State Department’s background documents, TASS reports.
    The State Department is blacklisting Gleb Romanovich Trotsenko due to his work or past work in the technology sector of the Russian Federation.
    In addition, the State Department is blacklisting a network of personal assets and investment vehicles used by the Trotsenko family. The documents claim that the Trotsenko family is close to Russian President Vladimir Putin.
    Let us recall that the mining group GeoProMining of Roman Trotsenko acquired 60% of the Zangezur copper-molybdenum plant in Armenia.
  • Britain targets Russian gold, oil sectors in new sanctions

    Britain targets Russian gold, oil sectors in new sanctions

    LONDON, Nov 8 (Reuters) – Britain on Wednesday imposed sanctions on 29 individuals and entities in Russia’s gold and oil sectors, as it targets the Kremlin’s finances supporting the war in Ukraine.

    Britain sanctioned two of Russia’s largest gold producers, Nord Gold Plc and Highland Gold Mining Ltd. Britain’s National Crime Agency (NCA) also issued an alert to financial institutions, warning them about Russian attempts to use gold to evade sanctions.

    The two companies did not immediately respond to requests for comment.

    Those sanctioned also include a United Arab Emirates-based network which Britain said was responsible for channelling more than $300 million in gold revenues to Russia, as well as businessmen Vladislav Sviblov and Konstantin Strukov.

    “Today’s sanctions will hit those who have provided succour to (Russian President Vladimir) Putin by helping him to lessen the impact of our sanctions on Russian gold and oil – two critical sources of revenue for the Russian war machine,” British Foreign Secretary James Cleverly said.

    The NCA said it hoped its notice would put banks and traders in Britain, a key location for precious metal trading, on alert so that Russian attempts to launder sanctioned gold by masking its origin could be spotted and stopped.

    “This alert will aid efforts, in partnership with the regulated sector, including the banks and high value dealers, to ensure that sanctioned individuals or those who represent them cannot use gold to circumvent UK sanctions,” said Adrian Searle, director of the National Economic Crime Centre at the NCA.

  • Gold miner may revive London listing after Russian asset sale

    Gold miner may revive London listing after Russian asset sale

    Polymetal International’s CEO, Vitaly Nesis, has expressed the possibility of reviving the company’s London listing once its sanctioned Russian unit has been sold. Polymetal, a gold miner that derives approximately 70% of its sales from Russia and the remaining from Kazakhstan, recently re-domiciled from Jersey to Astana as a preliminary step towards spinning off its Russian business in compliance with Moscow’s restrictions. This move, however, made it impossible to maintain its London listing. Nevertheless, the Russian unit was put up for sale after being included in a US sanctions list in May. Once the sale is finalized, Polymetal will reconsider listing alternatives.

    Nesis revealed that there has been significant interest in the Russian business from over ten potential buyers, including investors from China who are willing to take on sanctions risks. At present, the two parts of the company operate as separate entities, with independent funding and management decisions. Nesis, as the CEO, receives periodic reports on the activities of the Russian unit. While sales in Russia were temporarily halted due to sanctions, they have now resumed.

    Due to restrictions on developing Russian assets, Polymetal is exploring alternative options. Nesis mentioned that they are evaluating opportunities in Uzbekistan and Kyrgyzstan, considering potential acquisitions in those regions.

    Regarding the company’s future listing, Nesis stated that once the Russian assets are divested, they may consider a London listing over Dubai or Abu Dhabi. This decision reflects their strategic considerations and aligns with their future plans.