Chairman of the Management Board of NAC Kazatomprom JSC Askar Zhumagaliyev, announced today that due to the prolonged restoration in the uranium market, uranium production, planned in the Republic of Kazakhstan for 2017 will be reduced by approximately 10%. The reduction will be over 2,000 tons of uranium (more than 5 million pounds of U3O8) of the planned production of 2017. Overall, this equals 3% of the total world uranium production (based on UxC Consulting 2015 data). In total, this equals 3% of aggregate global uranium production (based on 2015 UxC Consulting figures).
In Kazakhstan, uranium is mined by Kazatomprom subsidiaries and joint ventures together with the international partners. The exact production levels for each mine and a joint venture are determined and approved by their respective management boards. The reduced volume of production is different in different mining enterprises, but the total aggregate indicator for a group of companies does not exceed 10%. These decisions are based on the current glut of the uranium market. In addition, these adjustments of production levels are consistent with the provisions of Kazakhstan subsoil use agreements governing each enterprise.
Chairman of the Management Board of Kazatomprom Askar Zhumagaliyev said: “While the prospects of nuclear energy continue to grow as confidently as it has been for many years, the glut of supply will be the reality of the uranium market in the nearest future. Kazatomprom and its joint venture partners had to make responsible decisions in light of these market challenges. It will be better for our shareholders and stakeholders that these strategic Kazakhstan resources remain in the bowels of the earth for the time being, rather than adding
to the current oversupply situation. Uranium will instead be realized under more favorable market conditions in the coming years.”
Even with these reductions, Kazatomprom remains the global leader in uranium mining and will continue to support the growth of nuclear energy throughout the world. This strategic decision will not affect the contractual obligations of the company.
For more information, contact: prkazatomprom.kz