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Kazakh largest uranium producer talks Russia-Ukraine conflict's affects on operations

Business Materials 16 March 2022 14:02 (UTC +04:00)
Kazakh largest uranium producer talks Russia-Ukraine conflict's affects on operations
Nargiz Sadikhova
Nargiz Sadikhova
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BAKU, Azerbaijan, March 16

Trend:

Despite Russia-Ukraine conflict, Kazatomprom anticipates that provision of services under Uranium Processing Agreement with the Uranium Enrichment Center (UEC) (a resident of the Russian Federation) will continue, Trend reports citing the company.

At the date of these results, the Group anticipates that provision of services under this agreement will continue. There may be a risk of difficulty in making mutual settlements in US dollars with UEC in the event of restrictions and blocking of the UEC's foreign currency accounts or in the event of the withdrawal of Russian banks from the SWIFT system. Potential measures related to the risk of Rosatom being sanctioned are now under consideration.

Some of the Group’s exported products are transported through the Russian Federation and, accordingly, there are risks associated with both transit through the territory of Russia and the delivery of cargo by sea vessels. The Group constantly monitors the situation with sanctions against Russia and the potential impact on the transportation of finished products. At the date of these results, there are no restrictions on the Group's activities related to the supply of the Group's products to end customers.

The Group’s financial position is currently unaffected by the events in Ukraine. The majority of Group revenue is earned in US dollars and funding is also raised in US dollars, creating a natural hedging effect on foreign exchange risk. Accordingly, fluctuations in the exchange rate of the national currency do not have a significant impact on the financial performance of the Group.

Kazatomprom is the world's largest producer of uranium, with the Company’s attributable production representing approximately 24% of global primary uranium production in 2021. 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 extract uranium using ISR technology with a focus on maintaining industry-leading health, safety and environment standards.

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