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KAZATOMPROM IMPROVES EVA FOR 15,4 BLN TENGE IN 2015

17 February 2016
KAZATOMPROM IMPROVES EVA FOR 15,4 BLN TENGE IN 2015

The management of NAC Kazatomprom presented to the Chairman of Samruk-Kazyna, JSC Umirzak Shukeyev the Road map for transformation of the Company in 2016.

 The Chairman of the National atomic company Askar Zhumagaliyev briefed about the work done by Kazatomprom as part of the transformation program, introducing the first results and presenting a scorecard for 2016.

As the results of the measures taken in 2015, the economic value added (EVA) of «Kazatomprom» increased by 15.4 billion KZT. Also, the adoption of comprehensive measures such as improvement of production efficiency, process optimization and energy efficiency enabled the company to reduce the production costs for 16.4 bln. tenge.

As of the end of 2015, Kazakhstan retained its leading position as the world's largest producer of natural uranium. The volume of production amounted to 23,800 tons of U, making Kazakhstan the largest supplier of uranium to the US and French market.

         “Kazatomprom sets big goals to develop nuclear industry in the country. The work has already started; significant measures have been taken to optimize the company, Company transferred the head offices of subsidiaries directly to the regions of operation. All this is in addition to the economy, brings a good effect of management, business should work without interruption from the realities of production - that is what we are seeking in terms of transformation,” - said Chairman of Samruk-Kazyna Umirzak Shukeyev

         Among the other significant results of operations - an agreement on the design and construction of a plant to produce fuel assemblies with CGNPC signed on December last year, relocation of headquarters of 10 subsidiary companies to uranium mining regions, as well as reducing the number of subsidiaries from 82 to 72.

The company has also developed a new investment policy aimed at improving the efficiency of investment, started a competitive selection of employees and introduced performance evaluation on KPI basis.

In the current year, Kazatomprom will continue to improve the corporate governance system, to enhance operating models and business processes, to increase efficiency and diversification of production.

Particular attention will be paid to the development of the main activities of Kazatomprom, the uranium market expansion of sales and production diversification. The company intends to complete the relocation of the two remaining  subsidiaries to the uranium mining regions, to establish a trading company, which will be engaged in sales on the spot market  and to close Kazatomprom’s representative offices in China, the USA and Russia, as well as to withdraw from the Holding of the 18 non-core businesses and to finalize the feasibility study for the construction of plant for the production of fuel assemblies at Ulba metallurgical plant.

In addition, as a part of the transformation program Kazatomprom plans to launch a new procurement model that would save money by ensuring the centralization and transparency of the process, as well as to introduce the system of remuneration based on grading in compliance with the principles of meritocracy, in order to increase motivation and performance of staff.

In order to increase manageability of the enterprises and automation of production processes the following information systems such as "Situation Center" and "Digital Mine" will be launched. These projects are designed for monitoring, analysis and visualization of key production and financial performance of the Holding activities.

Kazatomprom became the sixth portfolio company, which was visited by U. Shukeyev during the period from 8 to 15 February of this year. At the end of the session  the Plan of personal participation in transformation has been given to the Chairman of the National Atomic Company A. Zhumagaliyev, which specifies the scope and timing of the tasks in the transformation of "Kazatomprom" in 2016.

 

 

NAC KAZATOMPROM JSC is a national operator of the Republic of Kazakhstan for export of uranium and its compounds, rare metals, nuclear fuel for nuclear power plants, special equipment, technologies and dual-use materials. The Company’s main activities include geological exploration, uranium production, output of nuclear fuel cycle products, production of construction materials, power industry, science, social welfare and personnel training. Kazatomprom is an active participant of the program for renewable energy development in the Republic of Kazakhstan. At present, over 28,000 people are employed by the Company. Kazatomprom is one of the top uranium world producers.

www.kazatomprom.kz

 
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