Kazatomprom to increase production in 2025 as uranium market heats up
The Republic of Kazakhstan’s national atomic company Kazatomprom has revealed a strategy to upgrade its production plans by 2025 on the back of strong demand for its product and a growing uranium market.
The board of the world’s largest producer and seller of natural uranium has approved a 2025 production plan which will lead to an increase in production volumes to the 100% level of production relative to its subsoil use agreements.
The company is currently producing at 20% below subsoil use agreement levels.
“Kazatomprom remains committed to its market-centric strategy and its disciplined approach to production and sales, and we’re excited to witness the start of a long-awaited historical shift in the uranium market,” said the company’s chief commercial officer, Dastan Kosherbayev.
“Kazatomprom has shown strong market discipline for seven consecutive years keeping its production 20% below total subsoil use contracts level, and the company remains committed to its decision in relation to 2024 production (minus 10% against the subsoil use contracts level).”
2025 strategy
Mr Kosherbayev said the decision to increase to the 100% level in 2025 is primarily driven by the company’s strong contract-book and already growing sales portfolio against a conservative 2023-2024 production scenario.
“As we are seeing a clear sign that the industry has entered into the new long-term contracting cycle, driven by the recognition of the restocking needs, Kazatomprom, with its best-class and lowest cost mines, is absolutely prepared to respond to these improving market conditions.”
“Our current contract book provides sufficient confidence that the additional volume in 2025 will have a secure place in the market and be needed to fulfil future contractual obligations,” he said.
Mr Kosherbayev said the full implementation of the increase in production is expected to add up to an additional 6,000 tonnes of uranium to the anticipated global primary supply in 2025 compared to the company’s planned range for 2024.
Forecast production
The company’s 2025 production is forecast to be between 30,500 tonnes of uranium and 31,500 tonnes of uranium on a 100% basis.
“Although the year-over-year production increase from 2024 to 2025 is substantial, a significant portion of it is committed under the company’s medium- and long-term contracts,” Mr Kosherbayev said.
Kazatomprom has commenced talks with joint venture partners and mining subsidiaries to incorporate the required changes into the 2024 budgets and development plans, accounting for the expected production volumes increase in 2025.
Board changes
Kazatomprom has also revealed it has approved a number of changes to the company’s board, including the departure of chief executive officer, Yerzhan Mukanov.
He will resign from Kazatomprom’s board of directors, effective 2 October 2023.
Meirzhan Yussupov, previously the CEO of Kazakh Invest and Kazatomprom’s chief financial officer from 2015 to 2020, has been named as Kazatomprom’s new chief executive officer.
“On behalf of Kazatomprom’s board, I would like to thank Mr Mukanov for his effective work and for leading Kazatomprom during times of rising geopolitical uncertainty,” said Arman Argingazin, chair of Kazatomprom’s board of directors.
“Under his leadership Kazatomprom continued to show operational excellence, and expansion of Transcaspian International route is one of the important achievements that were completed under Mr Mukanov’s management.”
Mr Argingazin noted that the uranium market is showing unprecedented developments with prices hitting their absolute highs in 12 years and the company is particularly well positioned to meet growing demand.