Cameco and Kazatomprom suspend Inkai operations amid regulatory delays, boosting uranium prices

The global uranium price improved after the giant Inkai joint venture operations in Kazakhstan were suspended due to a delay in receiving key government approvals.

Canada’s Cameco (40%) confirmed the shutdown of production activity at the JV operation after being informed by partner Kazatomprom (60%) that the in-situ recovery JV failed to receive an extension to submit its project paperwork because of a delayed submission to Kazakhstan’s energy ministry.

Cameco said the extension had been expected to be granted prior to the end of 2024.

Extension not received as expected

“We were informed by Kazatomprom that the extension was not received as expected due to the delayed submission of the necessary documentation to the Ministry of Energy.

As majority owner and controlling partner of the joint venture, on December 30, 2024, Kazatomprom directed JV Inkai to plan for a halt of operations as of January 1, 2025, to avoid potential violation of Kazakhstan legislation,” Cameco stated.

“Based on the information we had been receiving from JV Inkai and Kazatomprom, a process to address the update of the project documentation was underway and a positive outcome was expected. Reports received by Cameco as recently as December 26, 2024, made no mention of a production suspension being a risk in relation to this process.”

“We are disappointed and surprised by this unexpected suspension and we will be seeking further clarification on how this transpired, as well as the potential 2025 and 2026 production and financial impacts (including on future dividends), and what Cameco can do to help Kazatomprom and JV Inkai restart mining operations.”

Preparing to submit documentation

Kazatomprom has reported the JV is expected to submit the required documentation to the Ministry of Energy of the Republic of Kazakhstan within the next couple of weeks, and the situation should be resolved shortly afterwards.

“Under the current circumstances, the company does not anticipate any significant impact on Kazatomprom’s 2025 production plans.”

“As always, Kazatomprom remains fully committed to fulfilling contractual obligations towards all existing customers and has sufficient level of inventories to comfortably manage its deliveries throughout 2025.”

Production numbers slightly down

Inkai has estimated reserves of 104.7 million pounds of uranium.

Production on a 100% basis for the most recent quarter was 2.0 million pounds, and 5.5 million pounds for the first 9 months of this year, compared to 2.0 million pounds and 6.3 million pounds in the same periods last year.

Inkai’s total packaged production from 2009 to September 30, 2024, not including the Sat2 Area test mining, is 95.7 million pounds.

Kazakhstan provided 43% of the world ’s uranium supply in 2022 and any reductions in production there has significant impacts on global supplies.