BAKU, Azerbaijan, Aug. 3
By Nargiz Sadikhova - Trend:
Uranium production by Kazakhstan’s Kazatomprom National Atomic Company amounted to 5,213 tons during 2Q2020 compared to 5,505 tons in 2Q2019, having decreased by 5 percent year-on-year, Trend reports with reference to company's report.
Furthermore, sales volume of the company equaled 2,466 tons of uranium in 2Q2020, which is 11 percent lower compared to 3,163 tons in 2Q2019.
Average realized price was $28.75 per pound during 2Q2020 compared to $27.69 per pound in 2Q2019, which indicates a 4-percent increase year-on-year.
The company said that production volumes for 2Q2020 and 1H2020 were modestly lower, as a result of the initial impact of decreased wellfield development activity and lower staff levels throughout the second quarter, amid the COVID-19 pandemic.
“There is typically a four- to nine-month lag between the wellfield development and production phases of the in-situ recovery mining process and as a result, the safety measures implemented during the first half of 2020 are expected to predominantly impact the second half of the year,” the company said.
The year-over-year decrease in uranium sales is due to seasonality and differences in the timing of deliveries for 2019 and 2020, the company said.
“The rising uranium spot price had a positive impact on Kazatomprom’s average realized price, which increased in the second quarter and first half of the year. If spot prices remain higher than 2019, the trend of increasing realized price is expected to continue, with the Company’s delivery schedule weighted to the second half of 2020,” the company said.
Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 23 percent of global primary uranium production in 2018.
The company 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.
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