Kazakhstan Increases State Control Over Uranium Industry
Kazakhstan has introduced significant amendments to its Subsoil Use Code, reinforcing the role of the national atomic company Kazatomprom in the uranium sector and tightening state control over exploration and production rights. Kazatomprom, the world’s largest uranium producer, accounted for approximately 21% of global primary uranium output in 2024. Signed into law by President Kassym-Jomart Tokayev on December 26, 2025, the amendments grant Kazatomprom priority rights to obtain exploration licenses in prospective areas, as well as the authority to reserve blocks containing uranium mineralization and deposits. If uranium is discovered within solid mineral blocks licensed to other subsoil users, those licenses may only be extended if the relevant blocks are returned to the State. Importantly, private subsoil users who discover uranium deposits within their licensed areas will not receive priority rights for uranium production. If Kazatomprom is awarded a new subsoil use agreement, any transfer of that agreement is now limited to entities in which the company holds a direct or indirect stake of over 75%. This is a marked tightening from the previous threshold of 50%. These changes apply only to newly issued agreements and do not retroactively affect existing ones. Extensions of existing subsoil use agreements or increases in approved production volumes and reserves, are now permitted only if Kazatomprom holds at least a 90% stake in the joint venture. As an alternative, foreign partners may fulfill this condition by transferring uranium conversion and enrichment technologies to Kazatomprom or to a jointly established legal entity. Such transfers must include the construction of a processing facility and a guaranteed offtake contract covering at least 50% of its output over the life of the extended agreement. The revised legislation also expands the grounds for early termination of subsoil use agreements. These now include the depletion of uranium reserves and failure to meet obligations related to Kazatomprom’s ownership share or the required transfer of nuclear fuel cycle technologies. Additionally, the exclusive right to conduct further exploration at existing uranium deposits is reserved for Kazatomprom or entities in which it holds at least a 90% stake. The strengthened regulatory framework is widely seen as part of Kazakhstan’s strategy to assert greater state control over its uranium sector, as the country seeks to grow its presence in global nuclear fuel markets, particularly in Asia and Europe and advance domestic plans to build a nuclear power plant. In contrast, the same legal amendments introduced a more investor-friendly contract regime for hydrocarbon exploration and production in underexplored territories, as previously reported by The Times of Central Asia. According to the World Nuclear Association, Kazakhstan holds approximately 14% of the world’s uranium resources and produced about 23,270 tons of uranium in 2024. The country became the leading global uranium producer in 2009 and currently accounts for over 40% of worldwide output. Of Kazakhstan’s 13 uranium mining projects, three are wholly owned by Kazatomprom, while the remaining 10 are joint ventures with foreign partners. In 2024, Kazatomprom’s share of national uranium production totaled 12,286 tons.
