ASTANA (TCA) — Askar Zhumagaliyev, the chairman of Kazakhstan’s national atomic company Kazatomprom, on January 10 announced that due to the prolonged recovery in the uranium market, planned 2017 production from Kazakhstan will be reduced by approximately 10 percent. This will amount to a volume greater than 2,000 MtU or more than 5 million lb U3O8, which is equal to 3 percent of total global uranium production, Kazatomprom said.
The uranium output of Kazakhstan is produced by mining operations either wholly owned by Kazatomprom, or managed through joint-ventures with international partners. The exact production levels for each mine and JV were determined and approved by their respective management boards, and vary from the overall aggregate 10% figure. These difficult decisions were based on a strategic review of the current oversupplied uranium market, and the unique circumstances and economics of each operation, the company said.
“While the outlook for nuclear energy growth continues as strong as it has been in many years, the realities of the near-term uranium market remain in oversupply,” Kazatomprom Chairman Askar Zhumagaliyev said. “Kazatomprom, and its joint venture partners, have had to make responsible decisions in light of these market challenges. These strategic Kazakh mineral assets are far more valuable to our shareholders and stakeholders being left in the ground for the time being, rather than adding to the current oversupply situation. Their greater value will instead be realized when produced into improved markets in the coming years.”
Even with these reductions, Kazatomprom will continue to lead global uranium production and support the growth of nuclear energy around the world. No existing customer contractual commitments are impacted by these strategic decisions, the company said.
