Kazakhstan's Kazatomprom to Supply Natural Uranium Concentrate to Russian and Chinese Companies

Kazakhstan's National Atomic Company Kazatomprom recently announced on the Astana International Exchange (AIX) that it has reached agreements with Russia's Uranium One and State Nuclear Uranium Resource Development Company (SNURDC) for the sale of natural uranium concentrate (U3O8).

Under the relevant arrangements, Kazatomprom plans to deliver a batch of natural uranium concentrate to the Siberian Chemical Combine, with the shipment intended for Uranium One; simultaneously, the company also plans to deliver a batch of natural uranium concentrate to Alashankou Railway Station, intended for SNURDC.

Kazatomprom stated that it plans to review the relevant major transactions at an extraordinary general meeting of shareholders to be held in September, including the U3O8 natural uranium supply contract signed with Uranium One, as well as the spot and forward purchase and sale contract for natural uranium concentrate signed with SNURDC.

Due to confidentiality clauses, specific information such as transaction prices, volumes, and delivery dates has not been disclosed. Kazatomprom stated that the relevant transaction parameters “are consistent with current market conditions and market trends.”

Kazatomprom is primarily engaged in uranium mining, processing of rare metals, and the production and sale of beryllium and tantalum products, all of which are exported. The company is majority state-owned, with the Samruk-Kazyna National Welfare Fund holding 62.99%, the Ministry of Finance of Kazakhstan holding 12.01%, and the remaining 25% being free-float shares.

Uranium One is an international group company within the management structure of TENEX Group, a subsidiary of Russia's State Atomic Energy Corporation (Rosatom). Rosatom is one of the world's major uranium mining companies with a diversified international asset portfolio. Uranium One is also a participant or shareholder in several Kazatomprom joint ventures, including UGHK LLP, Akbastau JV, and Karatau LLP.

SNURDC is an enterprise under State Power Investment Corporation (SPIC), primarily responsible for the supply of uranium resources and fuel assemblies, as well as investment functions in uranium exploration, development, and prospecting. In December 2017, SNURDC obtained an import license for natural uranium concentrate.