Kazatomprom responds to section 232 decision

15 July
Kazatomprom responds to section 232 decision

Today, JSC National Atomic Company “Kazatomprom” (“Kazatomprom” or “the Company”) issued a statement following the President of the United States’ decision to leave the current US uranium market unchanged.

“We welcome President Trump’s decision to decline the pursuit of restrictive trade actions on imports of uranium,” said Galymzhan Pirmatov, Kazatomprom’s Chief Executive Officer.

“Kazatomprom reiterates its long-held belief that intervention in any form is undesirable, as it can create significant distortion in an already fragile nuclear fuel market by incentivizing uneconomic production that relies on government support. A healthy global uranium market is the best solution to ensure future US security of supply.”

As a trusted international partner and supplier of uranium and nuclear fuel products, Kazatomprom delivers to utility customers around the world, including a number of customers in the US. In recent years, most of the major uranium mining companies, including Kazatomprom, have reduced production volumes, with the belief that these measures, and not market intervention, will help rebalance supply and demand and ultimately lead to a sustainable recovery of the uranium market.

In its original submission to the US Department of Commerce (“DoC”) in September, 2018, Kazatomprom stated its commitment to transparency and a commercial focus, clarifying that the company does not receive any state support or subsidies, counter to the claims of some respondents to the 232 investigation. The company also highlighted its concern that some utilities operating nuclear power plants in the US already face challenges competing against cheap natural gas and subsidized, non-baseload renewables. As such, the imposition of tariffs or quotas resulting in increased nuclear fuel costs would have made an already difficult situation even worse. Aside from threatening thousands of highly skilled jobs, reducing the proportion of baseload power supplied by nuclear would also have a negative impact on air quality, climate and human health.

“This decision is a clear win for US nuclear electricity producers and their customers,” added Mr. Pirmatov. “It sends a positive message that the Trump Administration does not want to undermine the competitiveness of clean nuclear generation in the US.”

Decision background

On April 14, 2019, the DoC submitted to President Trump the results of its investigation as to whether US uranium imports represent a threat to the national security of the United States, as defined under section 232 of the Trade Expansion Act of 1962 (the “Act”). Although President Trump agreed that the DoC report raises significant concerns regarding the impact of uranium imports on national security with respect to domestic mining, he disagreed that uranium imports threaten to impair the national security of the United States as defined under section 232 of the Act.

President Trump determined that a full analysis of the national security considerations of the entire US nuclear fuel supply chain is necessary, and he established a United States Nuclear Fuel Working Group to look beyond primary domestic supply. The Working Group will include representation from key branches of the US government, and has been tasked with reporting its findings and making recommendations to the President within 90 days.

President Trump also reiterated his previous commitment to revive and expand the nuclear energy sector in the US, with an ongoing review of US nuclear energy policy to revitalize what he referred to as a “crucial energy resource”.

 

For further information, please contact:

Kazatomprom Investor Relations Inquiries

Cory Kos, Head of Investor Relations

Tel: +7 (8) 7172 45 81 80

Email: ir@kazatomprom.kz

Kazatomprom Public Relations and Media Inquiries

Torgyn Mukayeva, Head of Public Relations and Internal Communication

Tel: +7 (8) 7172 45 80 63

Email: pr@kazatomprom.kz

Powerscourt – London (Giles Read)

Tel: +44 20 7250 1446

Email: Kazatomprom@powerscourt-group.com

A copy of this announcement will be made available at www.kazatomprom.kz.

About Kazatomprom

Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 23% of global primary uranium production in 2018. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 26 deposits grouped into 13 mining assets. All of the Company’s mining operations are located in Kazakhstan and mined using ISR technology with a focus on maintaining industry-leading health, safety and environment standards.

Kazatomprom securities are listed on the London Stock Exchange and Astana International Exchange. As the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, and the principal export markets for the Group's products are China, South and Eastern Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts, as well as in the spot market, directly from its headquarters in Nur-Sultan, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).

For more information, please see our newly updated website at http://www.kazatomprom.kz

Forward-looking statements

All statements other than statements of historical fact included in this communication or document are forward-looking statements. Forward-looking statements give the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the Company’s actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the future. THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALIZED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN. The information contained in this communication or document, including but not limited to forward-looking statements, applies only as of the date hereof and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to such information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company’s expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date hereof.

 

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