Kazatomprom updates 2024 uranium production guidance
Kazakhstan’s national atomic company and leading uranium producer, Kazatomprom, has revised its 2024 production guidance from 21,000–22,500 tonnes of uranium to 22,500–23,500 tonnes (11,600–12,600tU on an attributable basis). This update follows a 5% production increase in the second quarter (Q2) of 2024 compared to the same period in 2023, attributed to the resumption of 2023 drilling works.
The company stated that the additional uranium produced will be used to replenish its inventories. Kazatomprom has secured the necessary volumes of sulphuric acid for its 2024 production, despite a 20% reduction relative to its subsoil use agreements. However, limited sulphuric acid access and delays in constructing new deposits could impact 2025 production plans, initially forecasted to be between 30,500t and 31,500t. Updated projections for 2025 are expected later this month.
Kazatomprom remains the world’s largest uranium producer, serving nuclear generation operators in China, South and Eastern Asia, Europe, and North America. The company recently expanded its partnership with Kazakhstan’s Institute of Nuclear Physics for joint research projects in the civil nuclear industry and rare earth metals.
On July 20, Kazatomprom’s shareholder structure changed as Samruk-Kazyna sold a 12% equity stake to the Ministry of Finance of the Republic of Kazakhstan. From January 1, 2025, Kazatomprom will face changes to the Mineral Extraction Tax (MET) rate for uranium, rising from 6% to 9%. From 2026 onward, a differentiated MET rate will apply based on actual annual production volumes and uranium concentrate prices. Additional increases will apply if monthly uranium prices exceed certain thresholds.
These tax changes are expected to align Kazakhstan’s uranium production costs with other countries. Canadian uranium producer Cameco, which owns a 40% stake in the Inkai project through a joint venture with Kazatomprom, indicated that production costs in Kazakhstan would be similar to those in northern Saskatchewan.
Cameco also reported lower production from Inkai in the first half of 2024 due to early-year sulphuric acid supply challenges. The 2024 production expectation of 8.3 million pounds of triuranium octoxide (100% basis) from Inkai is contingent on sufficient sulphuric acid volumes.
Kazatomprom operates 26 deposits grouped into 14 mining assets. In June, it completed the pilot production phase for the Inkai 3 project, with expected uranium resources of 83.1 kilotonnes, and obtained a subsoil use licence for uranium exploration at the Vostochny block of the East Zhalpak deposit.
Kazakhstan accounted for 37.3% (20,100t) of the global uranium supply in 2023, with Inkai being the largest in-situ leach mine in the country.