Kazakhstan's leading nuclear resources company, Kazatomprom, announced on December 17 that Russia's Rosatom will be selling its stakes in several jointly developed uranium deposits to Chinese-owned companies, as per Reuters.
Kazatomprom, the world’s largest producer of uranium, holds the largest reserve base and produced 20% of the global supply of primary uranium in 2023. Despite its leading role, Kazatomprom has faced challenges due to its lack of uranium processing capacity.
Previously, Rosatom held stakes in six out of Kazatomprom’s 14 deposits, which complicated Kazatomprom’s ability to sell uranium to Western markets. In a move that reflects growing geopolitical tensions, Rosatom’s subsidiary, Uranium One Group, has sold its 49.979% stake in the Zarechnoye mine to SNURDC Astana Mining Company Limited, a Chinese company. This transaction connects China’s State Nuclear Uranium Resources Development Company as the ultimate beneficiary.
Additionally, Uranium One Group is transferring a 30% stake in the Khorasan-U joint venture to China Uranium Development Company Limited, which is linked to China General Nuclear Power Corporation (CGN). These sales are part of a broader reconfiguration of Rosatom's holdings in Kazakhstan’s uranium sector.
Kazatomprom has reassured investors that its own stakes in these deposits will remain unchanged. However, Rosatom's role in Kazakhstan's uranium resources is expected to diminish, even as the Russian company retains interests in deposits with substantial reserves, including the Budennovskoye deposit. These reserves, located in Kazakhstan, are among the world's largest.
China has become the biggest buyer of Kazakhstan’s uranium, further underscoring the growing economic ties between the two nations. Following the sale of the Khorasan-U stake, Rosatom will continue to hold interests in several Kazatomprom deposits, which collectively contain 255,000 tons of uranium reserves. As of early 2024, the Zarechnoye mine alone held approximately 3,500 tons of uranium.
The Khorasan-U joint venture operates within the Severny Kharasan deposit in the Kyzylorda region, with a uranium reserve of 33,000 tons and an estimated operational lifespan until 2038. In 2023, Uranium One produced 4,831 tonnes of uranium in Kazakhstan, further solidifying Russia’s position as the world’s sixth-largest uranium producer, with control over 44% of global uranium enrichment capacity.
The impact of international sanctions on Russia, particularly due to its involvement in the Ukraine conflict, has been a growing concern for Kazatomprom. CEO Meirzhan Yussupov stated in September that these sanctions have complicated efforts to sell uranium to Western buyers, with Kazatomprom selling 29% of its output to Europe. The company’s annual report highlighted the risks posed by its Russian partners, including potential reputational and corporate governance challenges.
Rosatom has also shown interest in building Kazakhstan’s first nuclear power plant, aiming to reduce reliance on polluting coal.
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