MINEX Forum

Tag: uranium mining

  • 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.

  • Kazakhstan Rejects C29 Metals’ Initial Bid for Ulytau Uranium Project

    Kazakhstan Rejects C29 Metals’ Initial Bid for Ulytau Uranium Project

    Australian mining company C29 Metals received notification from Kazakhstan’s Ministry of Industry on November 28, 2024, that its initial application to transfer ownership rights of Ulytau Resources Limited, holder of the Ulytau geological project, had been rejected at the first stage. This was revealed in the company’s quarterly activity report, published in late January, as reported by inbusiness.kz.

    According to the ministry’s statement, the request was denied under Subparagraph 1, Paragraph 10, Article 45 of Kazakhstan’s Subsoil and Subsoil Use Code. This clause allows refusal if the transfer of subsoil use rights or related assets threatens national security, including through the concentration of such rights.

    Following the rejection, C29 Metals requested a trading halt on the Australian Stock Exchange on November 29, with a suspension of quotations on December 3, later voluntarily extended on December 17. When trading resumed on December 23, the company’s stock price fell sharply.

    C29 Metals had signed a binding share purchase agreement in April 2024 to acquire 100% ownership of the Ulytau uranium project in the Moiynkum district of Zhambyl region. The license area was estimated to contain around 10 million pounds (3,800 tonnes) of uranium oxide. The project’s previous owners included several Kazakh investors.

    The company had been expanding its operations, obtaining two additional exploration licenses and receiving approvals for geophysical surveys, soil sampling, and drilling by late 2024. It had also signed a memorandum of understanding with Kazatomprom’s geological subsidiary, Volkovgeology, in anticipation of a commercial agreement.

    Upon receiving the rejection notice, C29’s Managing Director Shannon Green immediately traveled to Almaty to work with consultants and engage with Kazakh government authorities to address concerns. The company has been encouraged to reapply and is preparing a revised submission. Despite suspending exploration activities, C29 Metals remains financially stable and ready to resume operations once regulatory approval is granted.

    Kazakhstan’s uranium sector has been under increased scrutiny. In January, inbusiness.kz reported a legal precedent involving the revocation of a uranium exploration license from Nur Dala, which had Chinese investment. Additionally, Canadian firm Laramide Resources has been planning uranium exploration in the Chu-Sarysu basin.

    Kazakh law requires that uranium mining contracts be awarded only to companies where Kazatomprom holds at least a 51% stake, though exploration is not subject to the same restriction. Legislative amendments proposed in September 2024 may further reshape Kazakhstan’s uranium exploration and mining regulations.

  • Orano and Mongolia Sign $1.6bn Deal for Uranium Project

    Orano and Mongolia Sign $1.6bn Deal for Uranium Project

    France’s Orano Group has partnered with Mongolia’s government to develop the Zuuvch-Ovoo uranium mine, a $1.6 billion project in Dornogovi province. The agreement, signed in Ulaanbaatar, signifies a step forward for Mongolia’s mining sector and global low-carbon energy goals. Orano, in collaboration with Mongolia’s MonAtom Group, will oversee operations through their joint venture, Badrakh Energy.

    The mine, with an estimated 90,000 tonnes of uranium reserves, will leverage in-situ recovery methods. An initial $500 million investment will lead to production starting in 2028, creating 1,600 jobs and boosting Mongolia’s economy. With a projected output of 2,500 tonnes annually over 30 years, the project aligns with Mongolia’s Vision 2050 goals.

    Orano CEO Nicolas Maes emphasized the mine’s role in promoting low-carbon energy. Prime Minister Oyun-Erdene Luvsannamsrai celebrated the partnership as a milestone for economic growth and international collaboration, strengthening ties between Mongolia and France.

  • Mongolia and Orano Sign Uranium Mining Agreement for Zuuvch Ovoo

    Mongolia and Orano Sign Uranium Mining Agreement for Zuuvch Ovoo

    The Orano Group and the Mongolian government have formalized an agreement for the development and operation of the Zuuvch Ovoo uranium mine, marking Mongolia’s reentry into uranium mining after nearly three decades. Managed by Badrakh Energy—a joint venture between Orano and MonAtom Group—the project encompasses the Zuuvch Ovoo and Dulaan Uul deposits, with estimated uranium resources nearing 90,000 tonnes.

    Using in-situ leach technology, production is set to commence within four years, targeting a capacity of 2,500 tU annually over 30 years. An initial investment of $500 million will be followed by $1.6 billion throughout the mine’s lifespan. The project will generate 1,600 jobs and ensure over 51% of the direct benefits, including taxes and royalties, flow to Mongolia.

    The initiative aligns with Mongolia’s Vision 2050 goals, supporting economic growth and low-carbon energy. Prime Minister Oyun-Erdene Luvsannamsrai highlighted its contribution to inward investment and employment, while Orano CEO Nicolas Maes emphasized its role in global energy security.

  • Swedish Government Advances Efforts to Lift Uranium Mining Moratorium

    Swedish Government Advances Efforts to Lift Uranium Mining Moratorium

    District Metals Inc. (TSX-V: DMX) is making significant strides in 2025 with the recent announcement of the Swedish government’s plan to lift the uranium mining moratorium. The company owns 100% of the Viken deposit, a large undeveloped alum shale project with an average grade of just under 0.02% U3O8 and 0.3% V2O5.

    The Swedish Government’s inquiry report, released in December 2024, outlines the plan to remove the ban on uranium mining in the Environmental Code and classify uranium as a concession mineral under the Swedish Minerals Act. The proposed legislative changes are set to take effect by January 1, 2026.

    District Metals is included in the list of referral bodies invited to provide comments on the inquiry report into lifting the uranium moratorium during the written consultation period, which began on December 20, 2024, and will continue until March 20, 2025.

    The company’s strong working capital position of over C$5M and the lifting of the uranium mining moratorium in Sweden are expected to drive District Metals’ success in 2025. The company’s market capitalization currently sits at approximately C$53M, but with the proposed lifting of the moratorium, more attention will turn towards uranium projects in Sweden, potentially increasing the company’s value.

  • Mongolia and France’s Orano Group Reach Preliminary $1.6 Billion Uranium Mining Deal

    Mongolia and France’s Orano Group Reach Preliminary $1.6 Billion Uranium Mining Deal

    Mongolia has announced a preliminary agreement with Orano Mining Group, a leading French uranium producer, to develop a significant uranium mining project worth $1.6 billion. This project will commence its preparatory phase in 2024, with the goal of initiating uranium production by 2028. The peak production target of 2,600 metric tons is expected by 2044. The government emphasized the importance of this agreement in promoting foreign investment and creating substantial employment opportunities for the Mongolian workforce.

    Orano has been present in Mongolia for over 25 years, conducting extensive exploration activities. The French company, with established mining operations in regions such as Canada, Kazakhstan, and Niger, is expected to bring its expertise to the country’s uranium sector. This agreement follows years of anticipation and is viewed as a strategic move to enhance Mongolia’s role in the global uranium market. However, a previous announcement about the finalization of the agreement was corrected, confirming that only a preliminary deal had been reached.

  • Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    French state-controlled mining company Orano SA announced that its long-awaited uranium project in Mongolia, the Zuuvch Ovoo mine, could begin production by 2030, following five years of construction. The project’s future hinges on the signing of an investment agreement, with a confirmation vote scheduled for the current session of Mongolia’s parliament.

    Orano’s representative in Mongolia, Olivier Thoumyre, revealed that the mine could become the largest in the country since Rio Tinto’s Oyu Tolgoi copper-gold project. Zuuvch Ovoo has been in development for over a decade, initially launched by Orano’s predecessor, Areva SA, in partnership with Mongolia’s state nuclear company, Mon-Atom.

    The global demand for uranium is on the rise as countries such as China continue to build nuclear power plants, and other nations in Europe and Asia focus on nuclear energy as part of their strategies to reduce carbon emissions. This growing demand positions Mongolia to potentially become a key player in the uranium market, according to Thoumyre, who spoke at an industry event in Nalaikh, near Ulaanbaatar.

    The reappointment of Prime Minister Oyun-Erdene Luvsannamsrai in July has provided a sense of stability, encouraging continued negotiations between the Mongolian government and Orano. Discussions on the project’s terms, which began a year ago, have remained active, Thoumyre added.

  • 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.

  • Kyrgyz Parliament Lifts Ban on Uranium and Thorium Mining, Focusing on Economic Benefits

    Kyrgyz Parliament Lifts Ban on Uranium and Thorium Mining, Focusing on Economic Benefits

    Deputies of the Kyrgyz Parliament have voted in favor of a bill to lift the ban on mining uranium and thorium, with 69 votes in favor and three against. The parliamentarians are confident that these legislative changes will bring substantial economic dividends to the country.

    The ban on uranium and thorium mining was initially imposed in 2019 when authorities sought to sell a development license for a deposit. However, local residents expressed concerns about potential environmental damage and harm to the water table, leading to a complete ban across the Republic.

    Over the past century, the Issyk-Kul region of Kyrgyzstan alone has accumulated 150,000 cubic meters of radioactive waste from uranium mining. The country currently has 92 burial sites containing 23 tailing dumps with uranium elements, resulting in a total volume of 2.9 million cubic meters of poisonous and hazardous substances.

    The new bill emphasizes the need for alternative sources of income due to severe economic impacts in recent years. However, it also highlights the importance of strict compliance with environmental norms and standards in uranium and thorium mining.

    Minister of Natural Resources, Environment, and Technical Supervision, Melis Turganbayev, assured the deputies that the passage of the bill would not harm the environment or the health of Kyrgyz citizens. Turganbayev explained that the focus is not solely on uranium but also on associated metals. The plan is to mine titanomagnetite, which contains uranium and thorium. The extracted uranium will be sold to other states, while thorium will be stored. Processing will take place at the Kara-Balta Combine in Chui Oblast.

    While three deputies voted against the bill, citing environmental concerns, Doctor of Geological and Mineral Sciences, academician Rozalia Jenchuraeva, described the 2019 ban as a “big folly.” She highlighted the need to address the harmful waste and contamination of soil and water caused by hazardous materials lying just 20 meters below the surface. Jenchuraeva believes that mining these elements will clean up the land and create opportunities for the Kara-Balta Combine.

    President Japarov, who met with residents near the Kyzyl-Ompol deposit, expressed optimism about the development. He stated that it would create over a thousand jobs and become a significant resource similar to the Kumtor gold deposit. The aim is to boost the local budget and improve the living standards of the people.

    Kyzyl-Ompol, a uranium-thorionite placer deposit discovered in 1951, is one of the five areas in Kyrgyzstan where these minerals are found. It has been extensively explored by the Kyrgyz Institute of Geology.

  • Severe Storms Disrupt Uranium Mining Operations in Southern Kazakhstan

    Severe Storms Disrupt Uranium Mining Operations in Southern Kazakhstan

    Recent severe storms in southern Kazakhstan have caused significant disruptions to operations at various uranium mines, including the vital Inkai mine and processing complex, as outlined in a report by Global X ETFs. These disturbances have led to logistical challenges, particularly in the delivery of reagents, consequently impacting production at the Inkai facility. Despite uranium spot prices stabilizing below $100, attributed to factors like utilities’ purchasing hiatus and profit-taking by hedge funds, prices have remained at levels unseen in 16 years, according to Global X ETFs. The market’s resilience is partly bolstered by government support for nuclear energy, with expansion initiatives announced by countries like Ukraine and Serbia. The flooding, primarily in the region where Kazatomprom operates, Kazakhstan’s leading uranium producer, has intensified supply constraints. Melting snowstorms have further impeded operations at several uranium mines, including the Inkai mine and processing complex. Joint Venture Inkai, managing the Inkai project in partnership with Cameco and Kazatomprom, has been notably impacted by the disruptions. Hindered reagent deliveries have disrupted production activities. However, a return to normal operations at the Inkai facility is anticipated within three months upon the restoration of access roads. Questions have arisen regarding the accuracy of the report’s information, particularly concerning discrepancies in dates. This raises concerns about potential oversights during research or misinterpretation of data by the author. In addition to the uranium mining disruptions, severe flooding has ravaged parts of Kazakhstan and Russia, notably in the Ural Mountains and Siberia. The collapse of the Orsk Dam has resulted in at least eight fatalities and extensive damage, covering an area comparable to western Europe. While flood relief efforts have made significant strides, thousands remain displaced, with ongoing evacuations and housing challenges persisting in affected regions.