JSC National Atomic Company “Kazatomprom” (“Kazatomprom” or “the Company”) announces its intention to sell its 50% interest (minus one (1) share) in the Uranium Enrichment Center JSC (“UEC”) to its partner in the joint venture, TVEL Fuel Company (“TVEL”), for RUB6.253 billion (approximately US$100 million). The value of the Company’s interest in UEC is based on an independent fair market valuation carried out by a major global advisory firm. Kazatomprom is planning to retain one (1) share in UEC, which will preserve the Company's rights to access uranium enrichment services under the conditions previously agreed upon with TVEL.
UEC is a joint Kazakhstan-Russian enterprise established in 2006 as part of the implementation of the Comprehensive Program of Kazakhstan-Russia Cooperation in the Peaceful Use of Atomic Energy. It owns 25% (plus 1 share) of the Ural Electrochemical Integrated Plant JSC in Novouralsk, Sverdlovsk region of Russia. UEC was the first company with foreign-ownership to have an interest in a Russian uranium enrichment facility.
Kazatomprom’s decision to effectively exit UEC was based on the Company’s value-driven strategy, as well as its review of current uranium enrichment market conditions. Following negotiations with TVEL and approval by Kazatomprom’s Board of Directors, the transaction was approved by the Federal Antimonopoly Service of the Russian Federation on 30 January 2020, and it is now subject to approval by TVEL’s Board of Directors.
If approved by TVEL’s Board, and subject to customary closing conditions, the sale would be noted as a subsequent event in Kazatomprom’s 2019 Annual Operating and Financial Review and 2019 Annual Financial Statements (expected to be published 5 March 2020), with the financial impact expected to be reflected in the Company’s 2020 first quarter financial statements.
For further information, please contact:
Kazatomprom Investor Relations Inquiries
Cory Kos, Head of Investor Relations
Tel: +7 (8) 7172 45 81 80
Kazatomprom Public Relations and Media Inquiries
Torgyn Mukayeva, Director of Public Relations and Internal Communication
Tel: +7 (8) 7172 45 80 63
Powerscourt – London (Giles Read)
Tel: +44 20 7250 1446
A copy of this announcement will be made available at www.kazatomprom.kz.
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 visit our website at www.kazatomprom.kz
About TVEL Fuel Company
The fuel company of Rosatom TVEL includes enterprises for the fabrication of nuclear fuel, the conversion and enrichment of uranium, the production of stable isotopes, the production of gas centrifuges, as well as research and development organizations. It is the only supplier of nuclear fuel for Russian nuclear power plants. The fuel company of Rosatom TVEL supplies nuclear fuel for 73 reactors in 13 countries of the world, research reactors in eight countries of the world, and also for transport reactors of the Russian nuclear fleet. Every sixth energy reactor in the world runs on fuel made by TVEL. www.tvel.ru
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