Kazatomprom with potential challenges in uranium production to 2025

Challanges

Last Friday Kazatomprom informed us that due to the shortages of sulfuric acid and construction delays at newly developed deposits, it will have to adjust its production plans in the next two years.

In August 2022 Kazatomprom Board of Directors approved the plan to increase production volume from 80% to 90% level relative to Subsoil Use Agreements. The decision to increase production from 80% in 2023 to approximately 90% was dictated by continued success in signing new mid and long-term contracts. However, growing demand for sulfuric acid from agricultural and industrial enterprises and shortages in both domestic and foreign regional markets resulted in a challenging situation.

In a recent statement Kazatomprom stated: “Despite the ongoing active search for alternative sources of sulfuric acid supply, current forecasts indicate that the company may find it difficult to achieve 90% production levels compared to subsoil use contract levels,”

Results of COP 28

Moreover, Kazatomprom has informed that its guidance for 2025 may change if supply disruption continues throughout the whole of 2024 and if it won’t be able to keep its construction work schedule. This can be an important factor that will influence the uranium price due to the conclusion from the 28^th Conference of the Parties United Nations Framework Convention on Climate Change in Dubai (COP 28), where 24 nations have declared that they will triple nuclear power capacity by 2050.

Source of feature image: Kazatomprom official webside