BAKU, Azerbaijan, July 2
By Nargiz Saikhova - Trend:
The anticipated closure date for the project to construct a fuel assembly plant (Ulba-FA) at the Ulba Metallurgical Plant has been extended to July 31, 2021, Trend reports citing Kazakhstan’s Kazatomprom National Atomic Company.
As previously announced, under the terms of several cooperation agreements between Kazatomprom and China General Nuclear Power Corporation (CGNPC), the parties agreed to construct the Ulba-FA.
CGNPC provided a guarantee that Ulba-FA’s production will be purchased by CGNPC, in exchange for Kazatomprom agreeing to sell a 49 percent interest in the Company’s wholly-owned subsidiary, Ortalyk LLP, to a subsidiary of CGNPC (the Transaction).
In April 2021, a Sale and Purchase agreement was signed and the parties agreed to the valuation determined by one of the four major international advisory and professional services firms, whereby a 49 percent share of the operation has assessed a value of approximately $435 million.
The Transaction, subject to a number of conditions and governmental and legislative approvals, was expected to close by June 30, 2021. With the Counterparty’s agreement, the anticipated closure date has been extended to July 31, 2021.
Upon completing the Transaction, Kazatomprom will retain a controlling 51 percent interest and CGN Mining (a CGNPC subsidiary) will acquire a 49 percent interest in Ortalyk LLP, with each partner purchasing a proportionate share of uranium production from the operation according to interest.
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 2020.
The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 26 deposits grouped into 14 mining assets. All of the Company’s mining operations are located in Kazakhstan and mined using ISR technology with a focus on maintaining industry-leading health, safety and environment standards.
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